CSCP Free Practice Test

- (Topic 3)
Use of a centralized distribution center rather than a decentralized distribution network typically results in which of the following consequences?

1. A. Distribution system overhead is higher.
2. B. Customer delivery time is shorter.
3. C. Total transportation costs are lower.
4. D. Safety stock levels are lower.

Correct Answer: D

- (Topic 2)
A firm has discovered a product quality issue. What should be the first step in responding to this issue?

1. A. Determine the root cause of the quality issue.
2. B. Separate the non-conforming products.
3. C. Trace the location of the faulty product in the supply chain.
4. D. Replace faulty products when they are returned by the end user.

Correct Answer: C

- (Topic 2)
A company ships from its manufacturing facilities directly to its warehouses. If the number of warehouses increases, transportation costs between manufacturing facilities and warehouses most likely will:

1. A. increase.
2. B. decrease.
3. C. not change.
4. D. become less predictable.

Correct Answer: A

- (Topic 2)
The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:

1. A. enhance the competitive advantage.
2. B. gain access to proven management tools.
3. C. reduce the threat of organized labor.
4. D. reduce the cost of operating in multiple countries.

Correct Answer: A

- (Topic 3)
Which of the following statements best identifies the value of using a supplier rating system?

1. A. It provides an objective means for a company to determine outstanding suppliers.
2. B. It allows customers to post chargebacks to suppliers.
3. C. It offers a company an effective way to control suppliers' delivery processes.
4. D. It ensures that all suppliers are using the same quality standards to manufacture products.

Correct Answer: A