CSCP Module 1 Exam Study Guide with Complete Solutions

CSCP Module 1 Exam Study Guide with Complete Solutions Decoupling - Correct Answer Creating independence between supply and use of material. Commonly denotes providing inventory between operations so that fluctuations in the production rate of the supplying operation do not constrain production or use rates of the next operation. gross margin - Correct Answer The difference between total revenue and cost of goods sold optimization - Correct Answer Achieving the best possible solution to a problem in terms of a specified objective function. cycle stock - Correct Answer One of the two main conceptual components of any item inventory, the cycle stock is the most active component; the cycle stock depletes gradually as customer orders are received and is replenished cyclically when supplier orders are received. The other conceptual component of the item inventory is the safety stock, which is a cushion of protection against uncertainty in the demand or in the replenishment lead time. stockout costs - Correct Answer Those costs may include lost sales, backorder costs, expediting, and additional manufacturing and purchasing costs Interplant demand - Correct Answer One plant's need for a part or product that is produced by another plant or division within the same organization. Although it is not a customer order, it is usually handled by the master production scheduling system in a similar manner. Demand shaping - Correct Answer The practice of using the 4 Ps (product, pricing, placement, promotion) and other market variables to influence the demand of a product or service so that the demand better matches the available supply. buffer - Correct Answer 1) A quantity of materials awaiting further processing. It can refer to raw materials, semifinished stores or hold points, or a work backlog that is purposely maintained behind a work center. 2) In the theory of constraints, these can be time or material and support throughput and/or due date performance. They can be maintained at the constraint, convergent points (with a constraint part), divergent points, and shipping points. standard costs - Correct Answer The target costs of an operation, process, or product including direct ma