CSCP CSCP Internal Operations and Inventory Questions and Answers 3

Question 1

In demand-driven material requirements planning (DDMRP), what is the function of strategic decoupling points?

Accepted Answer

To buffer inventory at key positions to absorb variability and prevent it from propagating through the supply chain

Answer

To eliminate all inventory from the production process

Answer

To outsource manufacturing to third-party logistics providers

Answer

To synchronize all suppliers to a single delivery schedule

Question 2

Which metric calculates the percentage of customer orders fulfilled completely from available stock without backorders?

Accepted Answer

Fill rate

Answer

Inventory turnover

Answer

Days of supply

Answer

Gross margin return on investment

Question 3

What is the primary benefit of implementing a vendor-managed inventory (VMI) program for internal operations?

Accepted Answer

The supplier takes responsibility for monitoring and replenishing inventory levels, reducing the buyer's planning burden

Answer

The buyer eliminates all warehousing costs permanently

Answer

The supplier absorbs all inventory carrying costs regardless of contract terms

Answer

Production schedules are no longer needed

Question 4

How does the theory of constraints (TOC) approach inventory management differently from traditional methods?

Accepted Answer

It focuses on identifying and managing the bottleneck resource to maximize system throughput rather than optimizing each workstation independently

Answer

It recommends maximizing inventory at every workstation to prevent idle time

Answer

It eliminates quality inspections to speed up production flow

Answer

It requires all workstations to operate at full capacity simultaneously

Question 5

What distinguishes a make-to-order (MTO) production environment from a make-to-stock (MTS) environment in terms of inventory policy?

Accepted Answer

MTO begins production only after receiving a customer order, while MTS produces goods in anticipation of forecasted demand

Answer

MTO maintains higher finished goods inventory than MTS

Answer

MTS never uses demand forecasting

Answer

MTO requires no raw material inventory

Question 6

What is the purpose of an ABC classification system in inventory management?

Accepted Answer

To categorize inventory items by value or importance so that management effort and controls are proportional to each item's impact

Answer

To organize warehouse shelves alphabetically by product name

Answer

To assign all items equal reorder quantities

Answer

To determine the optimal number of suppliers for each item