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

Strategic decoupling points place inventory buffers at critical locations to absorb demand and supply variability, preventing the bullwhip effect.

Question 2

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

Accepted Answer

Fill rate

Answer

Fill rate measures the fraction of customer demand that is met immediately from on-hand inventory without any shortages or delays.

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

VMI shifts replenishment responsibility to the supplier, who monitors stock levels and ships product as needed, reducing the buyer's internal planning workload.

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

TOC identifies the system constraint and subordinates all other decisions to maximizing throughput at that bottleneck rather than pursuing local efficiencies.

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 triggers production based on actual customer orders, keeping minimal finished goods inventory, while MTS builds inventory based on demand forecasts.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

CSCP CSCP Internal Operations and Inventory Questions and Answers 3