CSCP CSCP Global Supply Chain Networks Questions and Answers 3

Question 1

A global apparel maker ships undyed garments to regional centers and dyes them only after local demand is known. Which strategy is this?

Accepted Answer

Postponement

Answer

Postponement delays final product differentiation until demand is clearer, reducing finished-goods inventory risk.

Question 2

Under the Incoterms 2020 rule FOB, when does risk transfer from seller to buyer?

Accepted Answer

When goods are placed on board the vessel at the named port of shipment

Answer

FOB (Free On Board) transfers risk once goods are loaded on board the vessel at the port of shipment.

Question 3

What is a primary financial benefit of using a U.S. Foreign Trade Zone (FTZ)?

Accepted Answer

Deferral or elimination of customs duties on goods re-exported or processed in the zone

Answer

Goods in an FTZ are treated as outside U.S. customs territory, so duties are deferred or avoided if re-exported.

Question 4

A U.S. company moves production from Asia to Mexico mainly to shorten lead times. This is best described as:

Accepted Answer

Nearshoring

Answer

Nearshoring relocates operations to a nearby country to reduce lead time and transport complexity.

Question 5

The center-of-gravity method in network design is used to:

Accepted Answer

Locate a facility that minimizes volume-weighted transportation distance

Answer

Center-of-gravity uses coordinates weighted by shipment volume to find a cost-minimizing facility location.

Certified Supply Chain Professional CSCP Practice Practice Test