CSCP FREE CSCP Questions and Answers 3

Question 1

What is the primary benefit of implementing a vendor-managed inventory (VMI) system?

Accepted Answer

Transfers replenishment decisions to the supplier

Answer

Eliminates all carrying costs

Answer

Removes the need for demand forecasting

Answer

Guarantees lowest unit pricing

Question 2

Which risk management strategy involves maintaining backup suppliers or alternative transportation routes?

Accepted Answer

Risk mitigation

Answer

Risk acceptance

Answer

Risk avoidance

Answer

Risk transfer

Question 3

In demand planning, what distinguishes dependent demand from independent demand?

Accepted Answer

Dependent demand is derived from the demand for a parent item

Answer

Dependent demand is forecasted while independent demand is calculated

Answer

Independent demand is derived from parent items

Answer

Dependent demand only applies to finished goods

Question 4

Which total cost of ownership (TCO) component is most commonly overlooked when evaluating offshore suppliers?

Accepted Answer

Landed costs including duties, freight, and compliance

Answer

Unit purchase price

Answer

Supplier marketing expenses

Answer

Domestic warehousing rent

Question 5

What is the key advantage of postponement strategy in supply chain design?

Accepted Answer

It delays product differentiation until closer to the point of demand

Answer

It eliminates the need for safety stock

Answer

It reduces raw material costs

Answer

It shortens total manufacturing lead time

Question 6

Which sustainability framework requires organizations to report on environmental, social, and governance impacts across their supply chain?

Accepted Answer

ESG reporting standards

Answer

ISO 9001

Answer

Six Sigma

Answer

Lean Manufacturing