CSCP CSCP Global Supply Chain Networks Questions and Answers 2

Question 1

Which strategy involves establishing production facilities in multiple countries to reduce dependency on a single region?

Accepted Answer

Geographic diversification

Answer

Geographic diversification spreads manufacturing across regions to mitigate risks from localized disruptions.

Question 2

What is the primary purpose of a foreign trade zone (FTZ) in global supply chain operations?

Accepted Answer

Deferring or reducing customs duties on imported goods

Answer

Foreign trade zones allow companies to defer, reduce, or eliminate customs duties on goods that are stored, assembled, or manufactured within the zone.

Question 3

In global supply chain management, what does the term 'landed cost' include?

Accepted Answer

Total cost including product price, shipping, duties, taxes, and insurance

Answer

Landed cost represents the total price of a product once it has arrived at the buyer's door, including all transportation, duties, taxes, and fees.

Question 4

Which Incoterm places the maximum obligation on the seller, covering all costs and risks to the buyer's destination?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

DDP requires the seller to bear all costs and risks of delivering goods to the named destination, including duties and taxes.

Question 5

What is a key challenge of managing inventory in a global supply chain network with long lead times?

Accepted Answer

Higher inventory carrying costs and increased risk of obsolescence

Answer

Long lead times force companies to hold more safety stock, increasing carrying costs and the risk that inventory becomes obsolete before it is sold.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

CSCP CSCP Global Supply Chain Networks Questions and Answers 2