The Down To Date Guide To CSCP Practice

NEW QUESTION 1

Market segmentation is important within the logistics function because it:

• A. leads to profitable exchanges with the customer and creates intrinsic customer value
• B. supports transactional marketing priorities for successful commodity exchanges to customers globally
• C. enables companies to position their products throughout the distributor network based on customer need
• D. creates perception in the mind of the customer as available products and services are exchanged

Answer: C

NEW QUESTION 2

Which of the following factors typically is most critical to effective change management?

• A. Early involvement of key stakeholders
• B. Extensive stakeholder education
• C. Analysis of the root causes of problems
• D. Quantification of potential benefits of the change

Answer: :A

NEW QUESTION 3

A company most likely would implement a supplier certification program to:

• A. improve the supplier's procurement process.
• B. abide by ISO standards.
• C. validate the supplier's compliance with requirements.
• D. implement point-of-sale (POS) terminals.

Answer: :C

NEW QUESTION 4

Which of the following situations is an example of inventory being held as a way to balance supply and demand?

• A. A manufacturer holds inventory of key components to maintain a level production schedule.
• B. A manufacturer of seasonal products builds finished-goods inventory before the peak
• C. selling period.
• D. A distributor maintains safety stock of slow-moving items at a central distribution center.
• E. A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

Answer: B

NEW QUESTION 5

A toy company decides to buy more products from an overseas company to reduce costs. To make sure that goods clear customs more quickly, the company most likely would engage a:

• A. consolidator.
• B. overseas carrier.
• C. shipping association.
• D. freight forwarder.

Answer: D

NEW QUESTION 6

To ensure a successful relationship, trading partners must adapt their organizations to leverage advantages found in cross-supply-chain collaboration because:

• A. customers and suppliers are not interactive.
• B. cross-functional support can be offered only by the central source.
• C. all entities are collectively responsible for growth of revenue and profits.
• D. risks in supplier/customer negotiations are reduced.

Answer: :C

NEW QUESTION 7

The purchasing manager of a company wants to minimize stock-outs as well as obsolete inventory. Which of the following tools needs to be implemented?

• A. Blanket purchase order
• B. Advanced planning and scheduling (APS)
• C. Buy-back contracts
• D. Business-to-business integration software

Answer: C

NEW QUESTION 8

Which of the following actions best exemplifies an appropriate demand management
strategy?

• A. Reducing costs in the procurement of goods
• B. Prioritizing demand when supply is constrained
• C. Maximizing sales orders from customers
• D. Updating the sales and operations planning (S&OP) to changes in production capacity

Answer: B

NEW QUESTION 9

Which of the following technologies directly enables pulling products through the supply chain?

• A. Automatic identification system (AIS)
• B. Point of sale (POS) system
• C. Customer relationship management (CRM)
• D. Supply chain event management (SCEM)

Answer: B

NEW QUESTION 10

Value stream mapping is a useful tool primarily because it:

• A. redefines supply chain relationships.
• B. is completed in 1 or 2 days.
• C. is used to improve efficiency in a specific area.
• D. looks at the entire supply chain rather than an isolated process.

Answer: D

NEW QUESTION 11

A company is beginning the process of defining market segments for its products and services. The most appropriate objective for this undertaking would be to identify groups of customers with similar:

• A. geographical locations.
• B. buying power.
• C. revenue potential.
• D. service requirements.

Answer: D

NEW QUESTION 12

A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year. Which of the following sourcing strategies would be most appropriate?

• A. Sole sourcing
• B. Multiple sourcing
• C. Long-term contracting
• D. Strategic partnering

Answer: D

NEW QUESTION 13

Which of the following outcomes occurs when direct shipping is used instead of a distribution network?

• A. Outbound transportation cost is reduced.
• B. Inventory velocity is reduced.
• C. Order-fill rates are reduced.
• D. Inventory obsolescence is reduced.

Answer: D

NEW QUESTION 14

Which two of the following tools should be used with an enterprise resources planning system to build realistic supply chain models and to plan the most profitable flow of goods across the chain?

• A. An advanced planning and scheduling system and simulators
• B. An inventory planning and management system and simulators
• C. A vendor managed inventory system and customer relationship management
• D. Customer activity planning and logistics management

Answer: A

NEW QUESTION 15

The practice of purchasing items in large quantities and requesting that shipments be
delivered directly to customers is referred to as:

• A. drop shipping.
• B. cross-docking.
• C. breaking bulk.
• D. freight equalization.

Answer: A

NEW QUESTION 16

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:

• A. 12 minutes.
• B. 20 minutes.
• C. 22.5 minutes.
• D. 28 minutes.

Answer: B

NEW QUESTION 17

Some firms that have licensed other companies to manufacture their products run the risk of:

• A. losing market share.
• B. the other companies becoming competitors.
• C. the products becoming a commodity.
• D. the products being overpriced.

Answer: B

NEW QUESTION 18

Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers?

• A. Automation of supplier sales activities
• B. Elimination of formal contracts
• C. Reduction in customer and supplier inventories
• D. Standardization of communications

Answer: C

NEW QUESTION 19

Which of the following changes often leads to higher levels of inventory?

• A. Decrease in customer service level
• B. Decrease in vendor lead times
• C. Increase in economies of scale
• D. Increase in warehouse holding costs

Answer: C

NEW QUESTION 20

Which of the following statements about the use of bar code labels for product identification in the supply chain is true?

• A. They have been replaced by radio frequency identification tags.
• B. They can be read by devices 1 to 3 meters from the item.
• C. They facilitate the capture of information about the location of items.
• D. Each of the trading partners must apply a unique label.

Answer: C

NEW QUESTION 21

Which of the following manufacturing strategies typically generates the lowest supply chain inventory?

• A. Make to Stock
• B. Assemble to Order
• C. Make to Order
• D. Engineer to Order

Answer: D

NEW QUESTION 22

Purchased component standardization generates savings primarily by reducing:

• A. assembly costs through economies of scale.
• B. engineering costs due to lower testing requirements.
• C. inventory control costs due to smaller shelf space requirements.
• D. inventory transportation costs by using economical modes.

Answer: A

NEW QUESTION 23
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