CSCP MODULE 1 EXAM QUESTIONS
& UPDATED ANSWERS RATED 100%
CORRECT
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. -
Correct Answer ✔✔ Decoupling
The difference between total revenue and cost of goods sold - Correct Answer ✔✔
gross margin
Achieving the best possible solution to a problem in terms of a specified objective
function. - Correct Answer ✔✔ optimization
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. - Correct
Answer ✔✔ cycle stock
Those costs may include lost sales, backorder costs, expediting, and additional
manufacturing and purchasing costs - Correct Answer ✔✔ stockout costs
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. - Correct Answer ✔✔
Interplant demand
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. - Correct Answer ✔✔ Demand shaping
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. - Correct Answer ✔✔ buffer
, The target costs of an operation, process, or product including direct material, direct
labor, and overhead charges. - Correct Answer ✔✔ standard costs
Forecasting the demand for a particular good, component, or service. - Correct Answer
✔✔ demand forecasting
A relative measure of financial performance that provides a means for comparing
various investments by calculating the profits returned during a specified time period. -
Correct Answer ✔✔ return on investment ROI
calculated as throughput minus operating expense divided by investment. - Correct
Answer ✔✔ theory of constraints ROI
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. -
Correct Answer ✔✔ pull system
A business from which merchandise, supplies, or other assets are purchased. - Correct
Answer ✔✔ vendor
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. - Correct Answer ✔✔ service industry
responding to customer needs - Correct Answer ✔✔ market driven
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.
- Correct Answer ✔✔ process chart
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. - Correct Answer ✔✔ Obsolescence
The purchasing process focused on transactions and nonstrategic material buying. It is
closely aligned with the "ordering" portion of executing the purchasing transaction
process. The characteristics for tactical buying include stable, limited fluctuations,
defined standard specifications, noncritical to production, no delivery issues, and high
reliability concerning quality-standard material with very little concern for rejects. -
Correct Answer ✔✔ tactical buying
& UPDATED ANSWERS RATED 100%
CORRECT
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. -
Correct Answer ✔✔ Decoupling
The difference between total revenue and cost of goods sold - Correct Answer ✔✔
gross margin
Achieving the best possible solution to a problem in terms of a specified objective
function. - Correct Answer ✔✔ optimization
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. - Correct
Answer ✔✔ cycle stock
Those costs may include lost sales, backorder costs, expediting, and additional
manufacturing and purchasing costs - Correct Answer ✔✔ stockout costs
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. - Correct Answer ✔✔
Interplant demand
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. - Correct Answer ✔✔ Demand shaping
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. - Correct Answer ✔✔ buffer
, The target costs of an operation, process, or product including direct material, direct
labor, and overhead charges. - Correct Answer ✔✔ standard costs
Forecasting the demand for a particular good, component, or service. - Correct Answer
✔✔ demand forecasting
A relative measure of financial performance that provides a means for comparing
various investments by calculating the profits returned during a specified time period. -
Correct Answer ✔✔ return on investment ROI
calculated as throughput minus operating expense divided by investment. - Correct
Answer ✔✔ theory of constraints ROI
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. -
Correct Answer ✔✔ pull system
A business from which merchandise, supplies, or other assets are purchased. - Correct
Answer ✔✔ vendor
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. - Correct Answer ✔✔ service industry
responding to customer needs - Correct Answer ✔✔ market driven
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.
- Correct Answer ✔✔ process chart
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. - Correct Answer ✔✔ Obsolescence
The purchasing process focused on transactions and nonstrategic material buying. It is
closely aligned with the "ordering" portion of executing the purchasing transaction
process. The characteristics for tactical buying include stable, limited fluctuations,
defined standard specifications, noncritical to production, no delivery issues, and high
reliability concerning quality-standard material with very little concern for rejects. -
Correct Answer ✔✔ tactical buying
