CSCP Free Practice Test

- (Topic 3)
A company may reduce its amount of safety stock by:

1. A. substituting information for inventory.
2. B. increasing the number of retailers.
3. C. increasing the number of producers.
4. D. changing to a push system.

Correct Answer: A

- (Topic 1)
Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

1. A. Inventory turnover ratio can be reduced.
2. B. Aggregate demand is more accurate than disaggregate demand.
3. C. The planning time fence can be adjusted as needed.
4. D. The supplier shares some risk for holding inventory.

Correct Answer: B

- (Topic 3)
Designing a supply chain to maximize responsiveness and flexibility is most appropriate for which of the following types of organizations?

1. A. Public utility provider
2. B. Configurable products manufacturer
3. C. Commodity goods supplier
4. D. Luxury goods manufacturer

Correct Answer: B

- (Topic 1)
A company’s decision to charge different prices for the same service sold in different market segments is most likely based on which of the following metrics?

1. A. Internal rate of return (IRR)
2. B. Lifetime customer value (LCV)
3. C. Net present value (NPV)
4. D. Return on investment (ROI)

Correct Answer: B

- (Topic 3)
Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5- day per week basis. Each shift has a ½-hour lunch break and two 15-minute coffee breaks. The cycle time is 12 minutes. To meet demand, production must occur at the rate of one unit every:

1. A. 12 minutes.
2. B. 20 minutes.
3. C. 22.5 minutes.
4. D. 28 minutes.

Correct Answer: B