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

VMI shifts inventory replenishment responsibility to the supplier, who monitors stock levels and makes restocking decisions based on agreed-upon parameters.

Question 2

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

Accepted Answer

Risk mitigation

Answer

Risk mitigation reduces the impact or likelihood of disruptions through proactive measures such as qualifying backup suppliers and establishing alternate logistics routes.

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 calculated from the production schedule of a parent item using the bill of materials, rather than being independently forecasted.

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

Landed costs such as customs duties, international freight, insurance, and regulatory compliance are frequently underestimated when comparing offshore versus domestic suppliers.

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

Postponement delays final product configuration or customization until actual customer demand is known, reducing forecast error and excess finished goods inventory.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

CSCP FREE CSCP Questions and Answers 3