CSCP Practice Exam 1 Flashcards
When working to extend risk management to supply chain partners, one best practice to generate lowest supply chain risk is to:
create business rules prioritizing suppliers and production and transportation routings.
create business rules prioritizing high-impact risks regardless of their probability.
transfer as much risk as possible to other partners.
transfer as much risk as possible from partners to the organization itself.
create business rules prioritizing suppliers and production and transportation routings.
Refer to the risk metrics shown below, which are scored on a numeric scale from 1-5 (1 being the lowest and 5 being the highest). What is the risk level for the loss of a major contract up for negotiation this year?
Metric Scale Score Risk tolerance 2 Probability of occurrence 4 Magnitude of loss 5 Cost to mitigate 4
20
Which of the following strategies should a company focus on to measure and improve customer service?
Forecast accuracy
Cash-to-cash cycle time
Productivity
Responsiveness
Responsiveness
Which of the following metrics should a company use to measure supply chain responsiveness?
Order fill rate
Cash-to-cash cycle time
Order fulfillment cycle time
Inventory turns
Order fulfillment cycle time
Which of the following areas in the collaborative planning, forecasting, and replenishment (CPFR) model corresponds to the order-to-cash cycle?
Logistics/distribution
Order fulfillment
Execution
Demand and supply management
Execution
If safety stock levels are calculated using normal distributions related to historical demand and 68.27% of days will have demand within +/– 1 standard deviation, calculating safety stock as a function of +/– 2 standard deviations will:
have almost as good a customer service level as +/– 3 standard deviations at a lower cost.
have almost as good a customer service level as +/– 1 standard deviation at a lower cost.
still result in stockouts on average 15.87% of the time.
still result in stockouts on average 31.73% of the time.
have almost as good a customer service level as +/– 3 standard deviations at a lower cost.
An organization implementing a balanced scorecard for a supply chain network would need to focus on which of the following perspectives?
Customer, supplier, internal processes, financial
Financial, customer, internal processes, workforce learning and growth
Financial, customer, supplier, operations
Supplier, workforce learning and growth, customer, financial
Financial, customer, internal processes, workforce learning and growth
Realigning an organization from product-focused to customer-focused requires which of the following changes?
Lowering production and distribution costs in order to increase customer support and marketing expenditures
Focusing all changes on how the sales and customer service departments with direct customer contact do business
Analyzing each customer contact point to determine how key players can maximize the customer’s experience
Replacing the chief operations officer with a chief customer officer
Analyzing each customer contact point to determine how key players can maximize the customer’s experience
When scheduling a constrained resource, which of the following actions should be taken?
Plan on less than 100% capacity at the constrained resource.
Ensure that there is a constant flow of work to the constrained resource.
Assign the best operators to the resource to maximize productivity.
Outsource the operation to a third party.
Ensure that there is a constant flow of work to the constrained resource.
A firm striving to improve its liquidity should focus on which of the following metrics?
Net present value
Profit margins
Inventory turns
Cash-to-cash cycle time
Cash-to-cash cycle time
Organizations implementing a six sigma strategy are attempting to:
measure capability.
improve productivity.
reduce variability.
eliminate bottlenecks.
reduce variability.
The primary reason for an organization to implement a supplier relationship management (SRM) system is to:
streamline the procurement process.
identify new suppliers.
standardize supplier communication.
eliminate purchase orders.
streamline the procurement process
Companies implementing sustainability often view it as a means to:
prevent lawsuits.
gain recognition in third-world countries.
stay ahead of environmental regulations.
gain a competitive edge and increase market share.
gain a competitive edge and increase market share.
Which of the following elements of a cost justification for a warehouse management system should be made most conservatively?
Reductions in positions and resulting lower labor costs
Increased profit due to more efficient use of direct materials
More reliable quality assurance reducing return percentage
Days’ inventory reduction in cash-to-cash cycle
Reductions in positions and resulting lower labor costs
A company keeps running out of several inexpensive items that are critical to production. The best solution for this problem is to:
standardize the components.
reclassify the items as A-level items.
increase the minimum inventory levels for the items.
provide an incentive to the supplier to keep extra in stock.
increase the minimum inventory levels for the items.
Which of the following statements denotes a characteristic of Incoterms® trade terms (International Commercial Terms)?
They are used to define tariffs.
They correspond to the Global Trade Identification Number (GTIN).
The responsibilities of the buyer and the seller are defined in each term.
They are the same for all transportation modes.
The responsibilities of the buyer and the seller are defined in each term
A company seeking improvement in its supply chain financial performance should concentrate on which of the following metrics?
Production flexibility
Inventory turns
After-sales costs
Takt time
Inventory turns
Forecasts are more accurate for which of the following?
Individual items
End-use components
Long-term horizons
Product families
Product families
Which of the following actions by trading partners would be most appropriate to protect against variability in supply and demand?
Reduce product complexity.
Increase inventory levels.
Increase information sharing.
Improve product quality.
Increase information sharing.
A focus on economic sustainability places the most emphasis on which of the following elements?
Minimizing supply chain costs and maximizing current-period revenue and profit
Planning, mitigating, detecting, responding to, and recovering from supply chain risks
Designing a portfolio of products wide enough to appeal to even smaller segments
Sensing and responding to new and pending environmental laws at an orderly pace
Planning, mitigating, detecting, responding to, and recovering from supply chain risks
To be most effective, design of a reverse logistics chain should begin during which of the following phases of the product life cycle?
Product design
Introduction
Maturity
Decline
Product design
You receive an e-mail from a supply chain manager asking if you have any ideas about how to improve the bottom line. In order to impact the bottom line, your recommendations must affect:
the company’s net income (profit or loss).
the company’s cash flow.
cost savings from sustainability activities.
the company’s tax liability.
the company’s net income (profit or loss).
Which of the following actions is an example of a reverse logistics strategy?
Supplying packaging to a consumer for returning goods
Minimizing the number of returned items
Setting up an automatic system for returning goods to a stocking location
Minimizing empty backhauls
Supplying packaging to a consumer for returning goods
A retailer replenishes stock by placing orders for new goods from a manufacturer on a one-to-one replacement basis and provides the manufacturer with point-of-sale data for their own forecasting purposes. This describes which of the following inventory management models?
Distributor integration
Continuous replenishment
Vendor-managed inventory
Quick response program
Quick response program
A company’s objective is to achieve best-in-class customer service performance. Which of the following indicators would be the most effective measure of the company’s progress?
Order fill rate
Value fill rate
Line fill rate
Item fill rate
Order fill rate
The role of information technology in the supply chain is:
visibility to product information for all partners.
access to trading partner data.
vertical integration of partners.
analysis of partner performance.
visibility to product information for all partners
A men’s clothing retailer operates three chains of stores in a single country. Each of the chains serves a specific age group with very little overlap. The strategy of having each chain focus on a specific age group is an example of:
brand clarification.
strategic overlap.
market segmentation.
demand management.
market segmentation
In which stage of the continuous improvement model might it be necessary to rethink the goal or move the benchmark?
Process analysis
Process assessment
Project planning
Implementation and change management
Project planning
The most important factor in changing the supply chain strategy is:
projected profit margins.
competitive positioning.
customer perception of value.
global opportunities.
customer perception of value
Supply chain management optimization includes determining:
a sourcing strategy.
a distribution strategy.
staffing levels for each node.
the position of inventory in the network.
the position of inventory in the network.
The voluntary initiative for companies to embrace, support, and enact a set of core values in the areas of human rights, labor standards, the environment, and anticorruption is the:
United Nations Police.
United Nations Global Initiative to Fight Human Trafficking.
United Nations Global Compact.
United Nations Global Education First Initiative.
United Nations Global Compact.
When an operations manager starts describing the production problems with a particular product mix forecast, it reminds the supply chain manager of a similar situation at a prior job. By the time the operations manager is done speaking, the supply chain manager has recalled the details and is ready to share the story. This is an example of which of the following?
Good influencing skills
Poor listening skills
Poor decentralization skills
Good interpersonal affiliation skills
Poor listening skills
ISO 26000:2010 provides companies with guidance on being socially responsible. Which topics are covered in these guidelines?
Environment, consumer issues, labor practices, and human rights
Human rights, consumer issues, fair operating practices, and employee communication messages
Consumer issues, labor practices, human rights, and use of social media
Labor practices, human rights, consumer issues, and use of advertisements
Environment, consumer issues, labor practices, and human rights
Selecting decoupling points to minimize lead times in a manufacturing process is an example of which of the following types of decisions?
Tactical
Operational
Cross-functional
Strategic
Strategic
Which of the following approaches to production scheduling accurately incorporates the theory of constraints?
Speed up production in front of the bottleneck.
Decrease inventory after the bottleneck.
Slow the process down to the bottleneck’s speed.
Speed up production after the bottleneck.
Slow the process down to the bottleneck’s speed.
The ability to manage which of the following factors typically is critical for a firm moving from transaction-based relationships to cooperative relationships with trading partners?
Production plans
Contract terms and conditions
Uncertainty and risk
End-customer requirements
Uncertainty and risk
Effective change management requires which of the following approaches?
Hiring a change champion
Changing the core strategy
Determining the return on investment (ROI) from the change
Involving stakeholders early
Involving stakeholders early
The process of identifying, analyzing, and addressing an organization’s exposure to uncertainty within the supply chain is known as:
risk management.
safety factor calculation.
the bullwhip effect.
buffer management.
risk management.
An organization has decided to reduce the number of distribution warehouses it uses to fulfill customer orders. What will be the most likely result?
In-transit inventory will decrease.
Replenishment lot sizes will decrease.
Total safety stock will decrease.
The order fill rate will decrease.
Total safety stock will decrease
An organization has pursued lean and Just-in-Time manufacturing and offshoring to a nearby low-labor-cost country. Which of the following is a significant consequence of these actions on the organization’s supply chain?
Reduced transportation costs
Higher total cost of ownership
Increased risk
More complex manufacturing processes
Increased risk
An appropriate use of an advanced planning and scheduling (APS) system is:
automatic replenishment of inventory.
optimization of transportation routes.
identifying constraints within a facility.
defining business rules when specific events occur.
identifying constraints within a facility
The transport of hazardous materials or dangerous goods requires:
identification and classification for shipping containers and some vehicles.
informal training of those who must handle hazmat and dangerous goods.
that they are concealed from view for security reasons.
signed documentation by the carrier that regulations were followed in cargo preparation.
identification and classification for shipping containers and some vehicles.
An organization automatically detects when a frequent purchaser calls. The customer is not placed on hold and is offered a purchase upgrade discount. Which type of customer segmentation is this organization using?
Segmentation by need
Segmentation by demographics
Segmentation by value
Segmentation by channel
Segmentation by value
A company is most likely to achieve which of the following benefits when implementing time fence policies?
Reducing lead time
Calculating available-to-promise inventory
Providing suppliers with a specific schedule
Reducing the number of schedule changes
Reducing the number of schedule changes
In the Supply Chain Operations Reference (SCOR®) model, which of the following metrics measures the reliability of a supply chain?
On-time delivery
Cash-to-cash cycle time
Upside production flexibility
Value added per employee
On-time delivery
A primary benefit of an enterprise resources planning (ERP) system to the supply chain is:
internet-enabled transactions across the supply chain.
mathematical models that support optimization.
visibility to real-time supply chain data.
coordinated planning within the organization.
visibility to real-time supply chain data.
Inside a demand time fence, can customer orders still be promised without needing higher authority approval?
Only when available-to-promise quantities exist
No, because the forecast is fully consumed by actual orders
Only when the forecast is not fully consumed by actual orders
Yes, because this fence defines what is available to be promised
Only when available-to-promise quantities exist
Firms that conduct business over the internet to become virtual organizations are using which of the following techniques?
Supply chain execution
Business process reengineering
Business-to-business commerce
Electronic data interchange
Business-to-business commerce
A chain of children’s clothing stores has implemented a frequent shopper reward program. The company has also implemented point-of-sale (POS) computer systems in each store, and the sales data from each store are transmitted to headquarters. The data for all stores are analyzed weekly by headquarters staff to determine the most popular styles and colors. This analysis of the data is an example of which of the following computer applications?
Selling products
Customer retention
Data mining
Demand generation
Data mining
Which of the following activities is not a component of demand planning?
Aggregating demand
Capturing actual demand
Measuring forecast accuracy
Promoting products
Promoting products
For the remanufacturing process to work, companies must take the remanufacturing of products into account beginning in which phase?
Distribution
Design
Production
Planning
Design
If an organization’s executives say they want to improve customer service from its current level of 95% to 100%, as measured by number of stockouts, the supply chain manager should:
increase safety stock by 5% to make the adjustment.
increase safety stock by 10% to make the adjustment.
postpone inventory deliveries to retailers to ensure low safety stock and perfect customer service.
explain that this level would be prohibitively expensive.
explain that this level would be prohibitively expensive.
Which of the following actions by a distributor is most likely to reduce the variability in demand seen by the manufacturers?
Reducing the delivery time to the retailers
Reviewing lot sizes with the manufacturers
Measuring the variability of incoming orders
Increasing the promotions offered to the retailers
Reducing the delivery time to the retailers
Which of the following warehouse ownership models can combine the benefits of economies of scale and scalability with lower long-term costs?
Fourth-party logistics (4PL) warehousing
Public warehousing
Contract warehousing
Private warehousing
Contract warehousing
A letter of credit offers security from which risk?
Acceptance of substandard goods
Counterparty risk
Refusal to accept delivery
Regulatory risk
Counterparty risk
Lean supply chains use which of the following actions to achieve their objectives?
Maximizing output
Optimizing inventory
Reducing costs
Reducing waste
Reducing waste
A large public utility understands that customer relationship (CRM) will be important in the future. It has committed to implementing the philosophy and supporting processes and information technology applications based on this future need. The factor most likely to inhibit success of the implementation is that the company:
is addressing the philosophy and applications concurrently.
will have to develop custom applications for its business.
will have to gather data about a large number of customers.
does not have documented objectives for the effort.
does not have documented objectives for the effort.
Which of the following types of carriers is the best choice for local transport of agricultural products?
Public
Private
Exempt
Contract
Exempt
The parent company of a chain of kitchen goods retailers is developing a website that will allow customers to view an online catalogue, locate stores near them, check the availability of specific items at stores, and order goods for pickup at a specific store. This website is an example of:
a business intelligence portal.
an outsourced application.
an internet-based portal.
an inventory optimization application.
an internet-based portal.
A salesperson makes a delivery promise that is prior to the customer’s delivery request date because this customer is in the most valuable customer segment. If the order arrives instead at the delivery request date, the customer will most likely be:
dissatisfied due to heightened customer expectations.
dissatisfied due to unacceptable speed of performance.
satisfied due to perfect order fulfillment.
atisfied due to the perfect fill rate.
dissatisfied due to heightened customer expectations.
