CSCP CSCP Global Supply Chain Networks Questions and Answers 2

Question 1

Which strategy involves establishing production facilities in multiple countries to reduce dependency on a single region?

Accepted Answer

Geographic diversification

Answer

Vertical integration

Answer

Demand pooling

Answer

Channel consolidation

Question 2

What is the primary purpose of a foreign trade zone (FTZ) in global supply chain operations?

Accepted Answer

Deferring or reducing customs duties on imported goods

Answer

Eliminating all import taxes permanently

Answer

Providing free labor for assembly operations

Answer

Guaranteeing faster shipping times

Question 3

In global supply chain management, what does the term 'landed cost' include?

Accepted Answer

Total cost including product price, shipping, duties, taxes, and insurance

Answer

Only the purchase price of the product

Answer

Purchase price plus domestic shipping only

Answer

The cost of warehousing at the destination

Question 4

Which Incoterm places the maximum obligation on the seller, covering all costs and risks to the buyer's destination?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

EXW (Ex Works)

Answer

FOB (Free on Board)

Answer

CIF (Cost, Insurance, and Freight)

Question 5

What is a key challenge of managing inventory in a global supply chain network with long lead times?

Accepted Answer

Higher inventory carrying costs and increased risk of obsolescence

Answer

Reduced need for safety stock

Answer

Simplified demand forecasting

Answer

Lower transportation costs

Question 6

Which risk mitigation approach involves qualifying and maintaining relationships with backup suppliers in different regions?

Accepted Answer

Multi-sourcing

Answer

Sole sourcing

Answer

Backward integration

Answer

Demand shaping