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

ABC analysis ranks inventory items by annual dollar usage, typically classifying the top 80% of value as A items, enabling focused management of the most financially significant stock.

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

Sharing actual point-of-sale data reduces demand signal distortion between echelons, which is the root cause of the bullwhip effect.

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

A planned order release indicates when an order must be initiated, offset by lead time from the planned order receipt date, to ensure materials arrive when needed.

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

Push systems rely on forecasted demand to schedule and release work, while pull systems initiate production only in response to actual downstream consumption or customer orders.

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

Cycle counting spreads inventory verification across the year by counting small subsets regularly, maintaining accuracy without requiring an operational shutdown.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

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