CSCP FREE Certified Supply Chain Professional (CSCP) Internal Operations and Inventory Questions and Answers 2

Question 1

A manufacturing company uses a fixed-order-quantity system. When the inventory position drops to 500 units and the reorder point is 500 units, what action should the inventory manager take?

Accepted Answer

Place an order for the economic order quantity

Answer

Wait until inventory reaches zero before ordering

Answer

Increase the safety stock level

Answer

Reduce the lead time with the supplier

Question 2

Which of the following best describes the purpose of a master production schedule (MPS) in internal operations?

Accepted Answer

To determine the specific quantities and timing of end items to be produced

Answer

To track daily employee attendance and productivity

Answer

To manage supplier contracts and payment terms

Answer

To calculate transportation costs for finished goods

Question 3

A company is evaluating its inventory carrying costs. Which cost component typically represents the largest portion of carrying costs?

Accepted Answer

Cost of capital tied up in inventory

Answer

Warehouse rental fees

Answer

Insurance premiums on stored goods

Answer

Inventory shrinkage and obsolescence

Question 4

In the context of capacity planning, what does the term 'demonstrated capacity' refer to?

Accepted Answer

The proven capacity calculated from actual historical performance data

Answer

The maximum theoretical output under ideal conditions

Answer

The capacity planned based on future demand forecasts

Answer

The capacity available after subtracting scheduled maintenance

Question 5

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

Accepted Answer

Reduced stockout risk while lowering the buyer's inventory management burden

Answer

Elimination of all carrying costs for the buyer

Answer

Transfer of product ownership to the vendor until point of sale

Answer

Guaranteed lowest purchase prices from the vendor

Question 6

A production facility uses the theory of constraints (TOC) approach. Which action should be prioritized first when managing a bottleneck resource?

Accepted Answer

Exploit the constraint by maximizing its utilization and throughput

Answer

Purchase additional equipment to eliminate the bottleneck

Answer

Outsource all work currently processed at the bottleneck

Answer

Reduce demand to match the bottleneck's current capacity

A manufacturing company uses a fixed-order-quantity system.When the inventory position drops to 500 units and the reorder point is 500 units, what action should the inventory manager take?

A manufacturing company uses a fixed-order-quantity system.
When the inventory position drops to 500 units and the reorder point is 500 units, what action should the inventory manager take?