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

Question 1

A company is implementing an inventory management strategy for its extensive portfolio of products.
The goal is to apply the most rigorous inventory control and forecasting techniques to the items that have the highest impact on overall inventory value.
Which of the following tools is most appropriate for this purpose?

Accepted Answer

ABC Analysis

Answer

Economic Order Quantity (EOQ)

Answer

Material Requirements Planning (MRP)

Answer

Just-in-Time (JIT)

Question 2

A manufacturing firm uses a pull system to manage the flow of components on its assembly line. When a downstream workstation consumes a bin of parts, it sends an empty bin and an associated card back to the upstream workstation to authorize the production of a new bin of parts. This signaling method is a core component of which system?

Accepted Answer

Kanban

Answer

Master Production Scheduling (MPS)

Answer

Six Sigma

Answer

Theory of Constraints (TOC)

Question 3

In a period of consistently rising raw material costs, a company wants to manage its reported income for tax purposes. By using an inventory valuation method that expenses the most recently purchased, more expensive inventory first, the company can report a higher Cost of Goods Sold (COGS) and thus a lower gross profit. Which inventory valuation method achieves this?

Accepted Answer

Last-In, First-Out (LIFO)

Answer

First-In, First-Out (FIFO)

Answer

Specific Identification

Answer

Weighted-Average Cost

Question 4

A planner has just finalized the Master Production Schedule (MPS), which outlines the quantities of each end product to be completed in each time period. What is the immediate next step that uses the MPS as a primary input to determine the specific quantities and timing of all subassemblies, components, and raw materials required?

Accepted Answer

Material Requirements Planning (MRP)

Answer

Sales and Operations Planning (S&OP)

Answer

Demand Forecasting

Answer

Distribution Requirements Planning (DRP)

Question 5

A warehouse manager is choosing an inventory replenishment policy for a low-value, standard hardware item. The supplier visits on a predictable schedule every two weeks. The manager finds it most efficient to check the stock and place an order only during the supplier's visit. Which inventory system is being described?

Accepted Answer

Periodic Review System

Answer

Continuous Review System

Answer

Two-Bin System

Answer

Vendor-Managed Inventory (VMI)

Question 6

Which of the following processes is a medium-range capacity planning tool used to validate whether a proposed Master Production Schedule (MPS) is feasible given the available capacity of critical resources like labor, machines, and key suppliers?

Accepted Answer

Rough-Cut Capacity Planning (RCCP)

Answer

Resource Planning

Answer

Capacity Requirements Planning (CRP)

Answer

Input/Output Control