CSCP Certified Supply Chain Professional

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Question 1

Which of the following organizational design choices is an example of vertical integration?

  • A. Contracting with a third-party logistics provider
  • B. Producing components used internally
  • C. Externally staffing a customer service center
  • D. Awarding a one-time trade show contract

Answer : B

Question 2

A remanufacturer of equipment is most likely to have what type of supply chain?

  • A. Modular logistics
  • B. Reverse logistics
  • C. Mixed model
  • D. Lateral

Answer : B

Question 3

Which of the following is the most important result when a company implements customer
relationship management?

  • A. Profits are maximized.
  • B. Retention of key customers is increased.
  • C. Product options are increased.
  • D. Transaction costs are decreased.

Answer : B

Question 4

Which of the following scenarios represents a correct application of the Supply-Chain
Operations Reference-model (SCOR)?

  • A. Sales and marketing refers to SCOR to improve demand generation.
  • B. Production and engineering uses SCOR best practices to design a new "make" process flow.
  • C. Distribution and logistics selects suppliers from the SCOR reference list.
  • D. Marketing and development incorporates SCOR Level I metrics for new product design.

Answer : B

Question 5

Which of the following situations is an example of postponement?

  • A. Shipments are broken down into small groups for reshipment.
  • B. Shipments are consolidated immediately for reshipment.
  • C. Production begins after a customer order is received.
  • D. Partially assembled goods are assembled at a later stage.

Answer : D

Question 6

Which of the following results can be expected from sharing a common understanding of
demand and consumption patterns among supply chain participants?

  • A. Improved transparency of collaboration relationships
  • B. Increased performance in balanced scorecard
  • C. Reduced inventory levels for key items
  • D. Better synchronization of planning and operations

Answer : D

Question 7

A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%.
The company averages four inventory turns. The cost savings resulting from increasing
inventory turns from four to six would be:

  • A. $29,000,000.
  • B. $15,750,000.
  • C. $10,500,000.
  • D. $ 5,250,000.

Answer : D

Question 8

Compared to a global strategy, a multicountry strategy would be characterized by:

  • A. strategy coordination across countries.
  • B. preferred suppliers located in host countries.
  • C. major strategic decisions coordinated centrally.
  • D. products adapted to local needs.

Answer : D

Question 9

Which of the following attributes typically makes reverse logistics processes more
complicated than outbound logistics processes?

  • A. Lead times for shipments are more variable.
  • B. Individual packages and cartons are less uniform.
  • C. There are more regulations mandated by local governments.
  • D. There is more competition for scarce transportation lanes.

Answer : B

Question 10

A manufacturer of plastic components that are sold either directly or through distributors
wants to identify the requirements of the end customers for each market segment. Which of
the following approaches would be most appropriate?

  • A. Analyzing the buying history for each of the market segments
  • B. Asking the manufacturer's direct customers
  • C. Conducting a market research project
  • D. Sending samples of potential future products to the final customers

Answer : C

Question 11

Which of the following considerations is an important supply chain design decision?

  • A. Product design
  • B. Selecting supporting information systems
  • C. Identifying labor force requirements
  • D. Identifying training programs

Answer : B

Question 12

A large manufacturer wanting to be more competitive in the global market place decided to
outsource its transportation and return processing to other companies on a contractual
basis. The companies providing the services would be referred to as:

  • A. fourth party logistics providers.
  • B. third party logistics providers.
  • C. retail services providers.
  • D. distribution services providers.

Answer : B

Question 13

A company considers outsourcing its information technology support to a low-cost region
on another continent. The company currently has no business presence there. Which of the
following actions is most effective in helping to select a service provider?

  • A. Contacting the country's consulate for leads
  • B. Contacting the country's local government for recommendations
  • C. Visiting several potential providers before making a selection
  • D. Finding a trusted local business agent to help in the search

Answer : D

Question 14

Which of the following strategies is used primarily for demand planning?

  • A. Build-to-order scheduling
  • B. Push-pull replenishment
  • C. Collaborative planning, forecasting, and replenishment
  • D. Vendor-managed inventory

Answer : C

Question 15

Which of the following practices has improved management of the customer pipeline?

  • A. Reverse auctions
  • B. Sales force automation
  • C. Finite capacity planning
  • D. Point-of-purchase metrics

Answer : B

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