CSCP FREE Certified Supply Chain Professional (CSCP) Internal Operations and Inventory Questions and Answers 3

Question 1

Which inventory classification method assigns items to categories based on annual dollar usage to prioritize management attention?

Accepted Answer

ABC analysis

Answer

FIFO valuation

Answer

Cycle counting by location

Answer

Safety stock calculation

Question 2

A company experiences a bullwhip effect in its supply chain. Which internal operations practice would most effectively reduce this distortion?

Accepted Answer

Sharing point-of-sale demand data with upstream partners

Answer

Increasing safety stock at every echelon

Answer

Offering deeper volume discounts to encourage batch ordering

Answer

Extending order lead times to allow more planning flexibility

Question 3

In materials requirements planning (MRP), what does the term 'planned order release' represent?

Accepted Answer

The quantity and date when a production or purchase order should be launched to meet a future need

Answer

The confirmed quantity already released to the shop floor

Answer

The total gross requirement before netting out on-hand inventory

Answer

The safety stock level required to buffer against demand variability

Question 4

What is the key difference between a push system and a pull system in production control?

Accepted Answer

A push system schedules production based on forecasts while a pull system triggers production based on actual demand signals

Answer

A push system uses kanban cards while a pull system uses MRP

Answer

A push system only works for service industries while a pull system is for manufacturing

Answer

A push system eliminates all inventory while a pull system maintains large buffers

Question 5

A warehouse manager wants to improve inventory accuracy without shutting down operations. Which approach is most appropriate?

Accepted Answer

Implement cycle counting with counts distributed throughout the year

Answer

Conduct a single annual physical inventory over a weekend

Answer

Rely solely on the ERP system's perpetual inventory records

Answer

Count only high-value items and estimate the rest

Question 6

Which metric best measures how efficiently a company converts its inventory investment into sales revenue?

Accepted Answer

Inventory turnover ratio

Answer

Gross margin return on investment

Answer

Days payable outstanding

Answer

Current ratio