CSCP Free Practice Test

- (Topic 2)
Managing supply chain risks includes which of the following activities?

1. A. Developing alternatives to key suppliers
2. B. Setting aside funds for disruption-recovery efforts
3. C. Charging each supply chain partner a portion of risk cost
4. D. Creating extra inventory to cover disruptions in the supply chain

Correct Answer: A

- (Topic 2)
A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact. The
best action for the company to do first is:

1. A. do nothin
2. B. The company is not responsible for compliance of suppliers.
3. C. replace the supplier as soon as possible with a compliant supplier.
4. D. notify the supplier of non-compliance.
5. E. require the supplier to become compliant.

Correct Answer: C

- (Topic 3)
Which of the following factors is most important to consider when deciding on offshore outsourcing of manufacturing to a supplier?

1. A. Size of the supplier organization
2. B. Total cost of ownership
3. C. Supplier performance history
4. D. Supplier certification

Correct Answer: B

- (Topic 1)
A media company offers a majority of its movies through a specific distributor. The media company is beginning to produce content for a new foreign market to which the distributor has exclusive access. To maximize savings and gain entry to this new market, the media company should:

1. A. create a contract for the new market.
2. B. enter into a partnership.
3. C. form a strategic alliance.
4. D. acquire the distributor.

Correct Answer: C

- (Topic 3)
A company produces to stock and sells its products to distributors. The factor that most likely will contribute to the risk of loss in inventory investment is the:

1. A. accuracy of demand forecasts.
2. B. replenishment lead time.
3. C. level of product quality.
4. D. variability in supply.

Correct Answer: A