CSCP Module 1 Exam 2025 Questions
and Answers
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
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,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 material, direct labor, and overhead charges.
demand forecasting - Correct Answer✔️✔️-Forecasting the demand for a particular good,
component, or service.
return on investment ROI - Correct Answer✔️✔️-A relative measure of financial performance that
provides a means for comparing various investments by calculating the profits returned during a
specified time period.
theory of constraints ROI - Correct Answer✔️✔️-calculated as throughput minus operating
expense divided by investment.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
, pull system - Correct Answer✔️✔️-1) In production, the production of items only as demanded
for use or to replace those taken for use. 2) In material control, the withdrawal of inventory as
demanded by the using operations. Material is not issued until a signal comes from the user. 3) In
distribution, a system for replenishing field warehouse inventories where replenishment decisions
are made at the field warehouse itself, not at the central warehouse or plant.
vendor - Correct Answer✔️✔️-A business from which merchandise, supplies, or other assets are
purchased.
service industry - Correct Answer✔️✔️-1) In its narrowest sense, an organization that provides an
intangible product (e.g., medical or legal advice). 2) In its broadest sense, all organizations except
farming, mining, and manufacturing.
market driven - Correct Answer✔️✔️-responding to customer needs
process chart - Correct Answer✔️✔️-A chart that represents the sequence of work or the nature of
events in process. It serves as a basis for examining and possibly improving the way the work is
carried out.
Obsolescence - Correct Answer✔️✔️-1) The condition of being out of date. A loss of value
occasioned by new developments that place the older property at a competitive disadvantage. A
factor in depreciation. 2) A decrease in the value of an asset brought about by the development of
new and more economical methods, processes, or machinery. 3) The loss of usefulness or worth of a
product or facility as a result of the appearance of better or more economical products, methods, or
facilities.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
and Answers
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
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,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 material, direct labor, and overhead charges.
demand forecasting - Correct Answer✔️✔️-Forecasting the demand for a particular good,
component, or service.
return on investment ROI - Correct Answer✔️✔️-A relative measure of financial performance that
provides a means for comparing various investments by calculating the profits returned during a
specified time period.
theory of constraints ROI - Correct Answer✔️✔️-calculated as throughput minus operating
expense divided by investment.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
, pull system - Correct Answer✔️✔️-1) In production, the production of items only as demanded
for use or to replace those taken for use. 2) In material control, the withdrawal of inventory as
demanded by the using operations. Material is not issued until a signal comes from the user. 3) In
distribution, a system for replenishing field warehouse inventories where replenishment decisions
are made at the field warehouse itself, not at the central warehouse or plant.
vendor - Correct Answer✔️✔️-A business from which merchandise, supplies, or other assets are
purchased.
service industry - Correct Answer✔️✔️-1) In its narrowest sense, an organization that provides an
intangible product (e.g., medical or legal advice). 2) In its broadest sense, all organizations except
farming, mining, and manufacturing.
market driven - Correct Answer✔️✔️-responding to customer needs
process chart - Correct Answer✔️✔️-A chart that represents the sequence of work or the nature of
events in process. It serves as a basis for examining and possibly improving the way the work is
carried out.
Obsolescence - Correct Answer✔️✔️-1) The condition of being out of date. A loss of value
occasioned by new developments that place the older property at a competitive disadvantage. A
factor in depreciation. 2) A decrease in the value of an asset brought about by the development of
new and more economical methods, processes, or machinery. 3) The loss of usefulness or worth of a
product or facility as a result of the appearance of better or more economical products, methods, or
facilities.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
