CSCP Free Practice Test

- (Topic 3)
A firm expands distribution of its products into additional countries. Some customers initiate order batching, which could lead to which of the following outcomes?

1. A. Bullwhip effect
2. B. Price fluctuations
3. C. Rationing
4. D. Better forecasting

Correct Answer: A

- (Topic 3)
Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

1. A. Sharing demand information
2. B. Placing large orders to obtain lower prices
3. C. Reducing the number of deliveries
4. D. Maintaining increased inventories

Correct Answer: A

- (Topic 3)
Which of the following strategies typically will require the lowest inventory investment and deliver the shortest lead time?

1. A. Producing finished goods to forecast and shipping directly to customers
2. B. Producing finished goods to forecast and distributing through a multi-echelon network
3. C. Producing subassemblies to forecast and doing final assembly and shipping from the factory
4. D. Producing subassemblies to forecast and doing final assembly and shipping from regional centers

Correct Answer: D

- (Topic 3)
Which of the following actions by a group of trading partners is most likely to improve the flow of funds among them?

1. A. Increasing the level of information sharing and collaboration
2. B. Negotiating a single set of terms for the trading partners
3. C. Reducing the time allowed for the timely payment discount
4. D. Implementing links among their information systems

Correct Answer: A

- (Topic 3)
If a firm has 35 days of accounts payable outstanding and 55 days invested in inventory, and its cash-to-cash cycle time is 90 days, what is the number of days of accounts receivable?

1. A. 70
2. B. 90
3. C. 110
4. D. 180

Correct Answer: A