Certified Supply Chain Professional CSCP Practice CSCP MCQ 1

Question 1

Which supply chain strategy involves maintaining a base level of production capacity while using overtime, subcontracting, or inventory to handle demand fluctuations?

Accepted Answer

Level strategy

Answer

The level strategy keeps production output constant over time, absorbing demand variability through inventory buildup, overtime, or subcontracting rather than adjusting workforce or capacity up and down.

Question 2

What is the primary purpose of safety stock in inventory management?

Accepted Answer

To buffer against variability in demand and supply lead times

Answer

Safety stock is held as a buffer to protect against unexpected variability in both customer demand and supplier lead times, preventing stockouts when actual conditions deviate from forecasts.

Question 3

Which type of demand is derived from the production schedules of a parent item rather than direct customer orders?

Accepted Answer

Dependent demand

Answer

Dependent demand is calculated from the demand for a higher-level (parent) item using bills of materials; for example, demand for tires depends on planned automobile production, not on separate customer orders for tires.

Question 4

In supply chain risk management, which strategy involves sourcing the same product or material from multiple suppliers to reduce vulnerability?

Accepted Answer

Dual or multi-sourcing

Answer

Dual or multi-sourcing spreads procurement across two or more suppliers, so that if one supplier experiences disruption, production can continue using alternative sources, reducing single-point-of-failure risk.

Question 5

Which term describes the practice of delaying product differentiation to the latest possible point in the supply chain?

Accepted Answer

Postponement

Answer

Postponement delays final product configuration or customization until actual customer demand is known, reducing the risk of building the wrong product mix and lowering finished goods inventory.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice CSCP MCQ 1