CSCP CSCP Supply Chain Performance Measurement and Metrics Questions and Answers 2 — Questions and Answers
Question 1: A high Inventory Turnover ratio generally indicates:
- Excess safety stock is being carried
- Products are selling quickly relative to inventory held (Correct answer)
- The company has low supplier reliability
- Order lead times are increasing
Correct answer: Products are selling quickly relative to inventory held
A high inventory turnover ratio means a company is selling and replenishing inventory frequently, indicating efficient inventory management and strong demand.
Question 2: Which supply chain cost metric captures ALL costs associated with managing orders, inventory, IT systems, and supply chain administration?
- Total Cost of Ownership
- Supply Chain Management Cost (Correct answer)
- Cost of Goods Sold
- Landed Cost
Correct answer: Supply Chain Management Cost
Supply Chain Management Cost (a SCOR Level 1 cost metric) includes costs to plan, source, make, deliver, return, and enable—the total cost to operate the supply chain.
Question 3: The 'Upside Supply Chain Adaptability' metric in SCOR measures:
- The time to reduce production by 20% in 30 days
- The maximum sustainable increase in production achievable in 30 days (Correct answer)
- The cost savings from scaling supply chain volume
- The number of backup suppliers available for surge demand
Correct answer: The maximum sustainable increase in production achievable in 30 days
Upside Supply Chain Adaptability measures the maximum percentage increase in quantity delivered that can be achieved sustainably within 30 days.
Question 4: A Balanced Scorecard applied to supply chain management typically measures performance across which four perspectives?
- Cost, Quality, Speed, Flexibility
- Financial, Customer, Internal Process, Learning & Growth (Correct answer)
- Plan, Source, Make, Deliver
- Safety, Service, Sustainability, Shareholder Value
Correct answer: Financial, Customer, Internal Process, Learning & Growth
Kaplan and Norton's Balanced Scorecard framework uses Financial, Customer, Internal Business Process, and Learning & Growth perspectives to provide a holistic performance view.
Question 5: A supply chain manager wants to reduce 'Dock-to-Stock Cycle Time.' This metric primarily affects which operational area?
- Outbound logistics cost
- Inbound receiving and warehousing efficiency (Correct answer)
- Supplier contract negotiation speed
- Customer order processing time
Correct answer: Inbound receiving and warehousing efficiency
Dock-to-Stock Cycle Time measures how long it takes from a shipment arriving at the dock to being available in storage, directly reflecting inbound receiving and warehousing efficiency.
Question 6: Which of the following best describes a 'lagging indicator' in supply chain performance measurement?
- A metric that predicts future supply chain disruptions
- A metric that measures outcomes after they have occurred (Correct answer)
- A real-time sensor tracking production throughput
- A forecast-driven demand signal from customers
Correct answer: A metric that measures outcomes after they have occurred
Lagging indicators measure past outcomes (e.g., on-time delivery rate, cost per order) and confirm whether a process achieved its goal after the fact.
Question 7: Return on Supply Chain Fixed Assets (ROSCA) is categorized under which SCOR attribute?
- Reliability
- Responsiveness
- Agility
- Asset Management Efficiency (Correct answer)
Correct answer: Asset Management Efficiency
ROSCA measures how effectively a supply chain utilizes its fixed assets to generate returns, which falls under the Asset Management Efficiency attribute in SCOR.
CSCP CSCP Supply Chain Performance Measurement and Metrics Questions and Answers 2
A high Inventory Turnover ratio generally indicates: