Certified Supply Chain Professional CSCP Practice Certified Supply Chain Professional (CSCP) Internal Operations and Inventory 1

Question 1

A distribution center uses a continuous review inventory system. Which of the following formulas correctly calculates the safety stock when demand variability is the primary source of uncertainty?

Accepted Answer

Safety Stock = Z × σ_demand × √Lead Time

Answer

Safety Stock = Average Demand × Lead Time

Answer

Safety Stock = Reorder Point − Average Demand during Lead Time

Answer

Safety Stock = Economic Order Quantity ÷ 2

Question 2

A company runs a periodic review inventory system with a review period of 4 weeks and a lead time of 2 weeks. What is the effective replenishment cycle that must be covered when placing a replenishment order?

Accepted Answer

6 weeks (review period plus lead time)

Answer

2 weeks (lead time only)

Answer

4 weeks (review period only)

Answer

8 weeks (two review periods)

Question 3

Which of the following best describes a Type I service level (also called the cycle service level) in inventory management?

Accepted Answer

The probability that no stockout occurs during a single replenishment cycle

Answer

The percentage of total annual demand fulfilled without a stockout

Answer

The ratio of units shipped on time to total units ordered

Answer

The average number of days an item is out of stock per year

Question 4

In rough-cut capacity planning (RCCP), planners compare the master production schedule against which of the following?

Accepted Answer

Key or critical resource capacities using bill of resources

Answer

Detailed shop-floor machine schedules

Answer

Available-to-promise quantities in finished goods

Answer

Purchase order lead times from suppliers

Question 5

A warehouse manager notices that a small percentage of SKUs accounts for the majority of annual inventory value. Which inventory classification technique should be applied to prioritize management attention?

Accepted Answer

ABC classification

Answer

Just-in-time (JIT) analysis

Answer

Economic order quantity (EOQ) modeling

Answer

Vendor-managed inventory (VMI)

Question 6

A manufacturer wants to reduce work-in-process (WIP) inventory on the shop floor. According to Little's Law, which of the following actions will directly achieve this goal, assuming throughput remains constant?

Accepted Answer

Reduce the average cycle time items spend in the production system

Answer

Increase batch sizes to reduce changeover frequency

Answer

Add buffer inventory between workstations

Answer

Switch from a pull system to a push system