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

Question 1

Which costing method assigns the most recent purchase costs to cost of goods sold, which can result in lower reported profits during periods of rising prices?

Accepted Answer

Last-In, First-Out (LIFO)

Answer

First-In, First-Out (FIFO)

Answer

Weighted average cost

Answer

Standard costing

Question 2

A manufacturer uses a fixed-order-quantity system. The reorder point is set at 150 units. What does this reorder point represent?

Accepted Answer

The on-hand inventory level at which a new order should be triggered

Answer

The maximum inventory level allowed before production must stop

Answer

The quantity ordered each time a replenishment order is placed

Answer

The safety stock level added to average cycle stock

Question 3

What is the primary distinction between push and pull production systems in internal operations?

Accepted Answer

Push systems produce based on forecasted demand; pull systems produce in response to actual customer demand

Answer

Push systems use kanbans while pull systems use MRP schedules

Answer

Push systems are used in make-to-order environments; pull systems in make-to-stock

Answer

Push systems minimize WIP inventory while pull systems maximize throughput

Question 4

Which internal operations metric measures the percentage of time a machine or work center is available and producing compared to its total scheduled time?

Accepted Answer

Overall Equipment Effectiveness (OEE)

Answer

Capacity utilization rate

Answer

Takt time

Answer

Cycle time efficiency

Question 5

In ABC inventory classification, which category typically represents the smallest percentage of SKUs but the largest percentage of annual inventory value?

Accepted Answer

A items

Answer

B items

Answer

C items

Answer

D items

Question 6

What is the purpose of safety stock in an inventory management system?

Accepted Answer

To buffer against variability in demand or supply lead times and prevent stockouts

Answer

To replace cycle stock when demand is predictably stable

Answer

To reduce the reorder point by compensating for excess supplier capacity

Answer

To lower carrying costs by reducing average on-hand inventory