CSCP PRACTICE EXAM QUESTIONS &
ACCURATE ANSWERS ALL PASSED
Volume growth is a key performance indicator for which of the following? - Correct
Answer ✔✔ Product merchandizing
Volume growth measures the success of merchandizing efforts.
Cycle counting is usually paired with which of the following to minimize the total cost of
inventory shrinkage? - Correct Answer ✔✔ ABC inventory classification
Inventory shrinkage is "losses of inventory resulting from scrap, deterioration, pilferage,
and so forth" (APICS Dictionary, 16th edition). ABC inventory classification groups
inventory into categories of relative value, and when paired with cycle counting, can be
used to count A items more frequently, thus reducing the likelihood of shrinkage for the
most valuable inventory.
A salesperson makes a delivery promise that is prior to the customer's delivery request
date because this customer is in the most valuable customer segment. If the order
arrives instead at the delivery request date, the customer will most likely be: - Correct
Answer ✔✔ dissatisfied due to heightened customer expectations.
Customers have expectations about supplier availability, performance, and service
reliability. Organizations can go a long way toward customer satisfaction by setting
realistic expectations with their customers. One phrase that sums this up is to under-
promise and over-deliver.
A chain of grocery stores has implemented a customer loyalty program that includes
sending customers coupons four times per year. The coupons are for items each
customer has frequently purchased in the past but has not purchased in the past three
months. This program would typically be considered an element of: - Correct Answer
✔✔ customer relationship management.
Customer relationship management (CRM) is about nurturing mutually beneficial, long-
term relationships intimate enough to provide tailored solutions to meet mutual needs.
CRM programs focus more on the customer, while sales force automation is more
centered on those tools used by salespeople.
An organization automatically detects when a frequent purchaser calls. The customer is
not placed on hold and is offered a purchase upgrade discount. Which type of customer
segmentation is this organization using? - Correct Answer ✔✔ Segmentation by value
,Today more and more organizations are treating customers differently based on the
differences in the customers' contributions to the bottom line. Segmentation by value
shows a customer-driven business which groups are most profitable to them so they
can focus marketing efforts on those customers.
Which is a reverse logistics best practice for an organization that places a strategic
priority on efficient, cost-effective returns processing and has the infrastructure to do
this at high levels of customer satisfaction? - Correct Answer ✔✔ Retain the functions,
but restrict returns processing to selected facilities.
While reverse logistics is not a core competency for most organizations, this
organization appears to have it as a core competency and a strategic priority.
Therefore, it should retain these functions in house. The products in the reverse chain
won't necessarily move through the same nodes as products in the forward chain
because fewer, and different, warehouses, may be required.
A manufacturer creates a new supply plan that is aligned with the corporate strategy,
mission, and culture. The manufacturer makes decisions on using centralized vs.
autonomous sourcing and plans for future growth. However, soon after the plan is
implemented, unforeseen issues begin causing stockouts of crucial supplies, disrupting
the manufacturing process and causing massive losses. What is the likely cause of this
failure? - Correct Answer ✔✔ Failure to conduct a risk assessment
The unforeseen issues would likely have been identified and accounted for had the
organization conducted a risk assessment. The risks of a supply plan must be spelled
out for decision makers at a high level, including an assessment of the likelihood of
each risk, its impact if it occurs, and possible means and costs involved in mitigating the
risk. Process change risks should be called out. Contingency plans should be included.
Which of the following tasks is most likely to be performed by a purchasing
agent/planner rather than a purchasing manager? - Correct Answer ✔✔ Resolving
discrepancies in orders or accounts
Purchasing managers focus on strategic tasks such as supplier selection, contract
negotiation, and analysis and evaluation of the supply system. Purchasing agents or
planners focus on placing orders, following up with suppliers as needed, monitoring
supply needs, and measuring supplier performance.
If you are the supply chain manager, where should you be looking in the supply chain in
order to get the best view of potential changes to the market? - Correct Answer ✔✔ At
the next stop downstream in the chain and at the consumer end
Watch trends in demand at the consumer end of the chain, not just at the next stop
downstream. Visibility to the end of the chain can speed up response to changes in the
market.
, The schedule will not allow exhaustive analysis of all the scenarios that the team knows
are causing a system to crash, but they need to correct the majority of the issues. What
quality tool would best help them focus their resources? - Correct Answer ✔✔ Pareto
diagram
A Pareto diagram visualizes the causes that contribute to 80% of the effects (or system
crashes).
What technologies form the foundation of an intelligent supply chain because one
provides input data at a much finer grained level of detail than otherwise possible and
the other enables each object providing that data to have a "digital twin?" - Correct
Answer ✔✔ Internet of Things (IoT) and intelligent asset management (IAM)
IoT devices enable networking on non-computer devices using internet
communications. This technology provides input data at a much finer grained level of
detail than otherwise possible. IAM creates a digital version or "digital twin" of an
industrial asset so the asset's performance and maintenance status can be updated.
While blockchain is an enabling technology for an intelligent supply chain, it fulfills
different functions than those described in the question.
The voluntary initiative for companies to embrace, support, and enact a set of core
values in the areas of human rights, labor standards, the environment, and
anticorruption is the: - Correct Answer ✔✔ United Nations Global Compact.
The UN Global Compact is a strategic policy initiative for businesses that are committed
to aligning their operations and strategies with ten universally accepted principles in the
areas of human rights,labor, the environment,and anticorruption.
Which of the following describes commercial bribes? - Correct Answer ✔✔ They may
be a payoff to cover up inferior products.
Commercial bribes are usually aimed at covering up for an inferior product or obtaining
new business or proprietary information. They can also involve industrial espionage,
where sensitive information is stolen or kickbacks or payoffs are made for trade secrets
or price schedules.
A toy manufacturer wants to use an auction to procure a large shipment of common
screws at the lowest possible cost. Which type of auction should the manufacturer use?
- Correct Answer ✔✔ Reverse auction
Reverse auctions are internet auctions in which suppliers attempt to underbid their
competitors; company identities are known only by the buyer. The manufacturer could
draw multiple bids for the screws and drive the suppliers to lower their prices to the
lowest level possible, saving the manufacturer money.
ACCURATE ANSWERS ALL PASSED
Volume growth is a key performance indicator for which of the following? - Correct
Answer ✔✔ Product merchandizing
Volume growth measures the success of merchandizing efforts.
Cycle counting is usually paired with which of the following to minimize the total cost of
inventory shrinkage? - Correct Answer ✔✔ ABC inventory classification
Inventory shrinkage is "losses of inventory resulting from scrap, deterioration, pilferage,
and so forth" (APICS Dictionary, 16th edition). ABC inventory classification groups
inventory into categories of relative value, and when paired with cycle counting, can be
used to count A items more frequently, thus reducing the likelihood of shrinkage for the
most valuable inventory.
A salesperson makes a delivery promise that is prior to the customer's delivery request
date because this customer is in the most valuable customer segment. If the order
arrives instead at the delivery request date, the customer will most likely be: - Correct
Answer ✔✔ dissatisfied due to heightened customer expectations.
Customers have expectations about supplier availability, performance, and service
reliability. Organizations can go a long way toward customer satisfaction by setting
realistic expectations with their customers. One phrase that sums this up is to under-
promise and over-deliver.
A chain of grocery stores has implemented a customer loyalty program that includes
sending customers coupons four times per year. The coupons are for items each
customer has frequently purchased in the past but has not purchased in the past three
months. This program would typically be considered an element of: - Correct Answer
✔✔ customer relationship management.
Customer relationship management (CRM) is about nurturing mutually beneficial, long-
term relationships intimate enough to provide tailored solutions to meet mutual needs.
CRM programs focus more on the customer, while sales force automation is more
centered on those tools used by salespeople.
An organization automatically detects when a frequent purchaser calls. The customer is
not placed on hold and is offered a purchase upgrade discount. Which type of customer
segmentation is this organization using? - Correct Answer ✔✔ Segmentation by value
,Today more and more organizations are treating customers differently based on the
differences in the customers' contributions to the bottom line. Segmentation by value
shows a customer-driven business which groups are most profitable to them so they
can focus marketing efforts on those customers.
Which is a reverse logistics best practice for an organization that places a strategic
priority on efficient, cost-effective returns processing and has the infrastructure to do
this at high levels of customer satisfaction? - Correct Answer ✔✔ Retain the functions,
but restrict returns processing to selected facilities.
While reverse logistics is not a core competency for most organizations, this
organization appears to have it as a core competency and a strategic priority.
Therefore, it should retain these functions in house. The products in the reverse chain
won't necessarily move through the same nodes as products in the forward chain
because fewer, and different, warehouses, may be required.
A manufacturer creates a new supply plan that is aligned with the corporate strategy,
mission, and culture. The manufacturer makes decisions on using centralized vs.
autonomous sourcing and plans for future growth. However, soon after the plan is
implemented, unforeseen issues begin causing stockouts of crucial supplies, disrupting
the manufacturing process and causing massive losses. What is the likely cause of this
failure? - Correct Answer ✔✔ Failure to conduct a risk assessment
The unforeseen issues would likely have been identified and accounted for had the
organization conducted a risk assessment. The risks of a supply plan must be spelled
out for decision makers at a high level, including an assessment of the likelihood of
each risk, its impact if it occurs, and possible means and costs involved in mitigating the
risk. Process change risks should be called out. Contingency plans should be included.
Which of the following tasks is most likely to be performed by a purchasing
agent/planner rather than a purchasing manager? - Correct Answer ✔✔ Resolving
discrepancies in orders or accounts
Purchasing managers focus on strategic tasks such as supplier selection, contract
negotiation, and analysis and evaluation of the supply system. Purchasing agents or
planners focus on placing orders, following up with suppliers as needed, monitoring
supply needs, and measuring supplier performance.
If you are the supply chain manager, where should you be looking in the supply chain in
order to get the best view of potential changes to the market? - Correct Answer ✔✔ At
the next stop downstream in the chain and at the consumer end
Watch trends in demand at the consumer end of the chain, not just at the next stop
downstream. Visibility to the end of the chain can speed up response to changes in the
market.
, The schedule will not allow exhaustive analysis of all the scenarios that the team knows
are causing a system to crash, but they need to correct the majority of the issues. What
quality tool would best help them focus their resources? - Correct Answer ✔✔ Pareto
diagram
A Pareto diagram visualizes the causes that contribute to 80% of the effects (or system
crashes).
What technologies form the foundation of an intelligent supply chain because one
provides input data at a much finer grained level of detail than otherwise possible and
the other enables each object providing that data to have a "digital twin?" - Correct
Answer ✔✔ Internet of Things (IoT) and intelligent asset management (IAM)
IoT devices enable networking on non-computer devices using internet
communications. This technology provides input data at a much finer grained level of
detail than otherwise possible. IAM creates a digital version or "digital twin" of an
industrial asset so the asset's performance and maintenance status can be updated.
While blockchain is an enabling technology for an intelligent supply chain, it fulfills
different functions than those described in the question.
The voluntary initiative for companies to embrace, support, and enact a set of core
values in the areas of human rights, labor standards, the environment, and
anticorruption is the: - Correct Answer ✔✔ United Nations Global Compact.
The UN Global Compact is a strategic policy initiative for businesses that are committed
to aligning their operations and strategies with ten universally accepted principles in the
areas of human rights,labor, the environment,and anticorruption.
Which of the following describes commercial bribes? - Correct Answer ✔✔ They may
be a payoff to cover up inferior products.
Commercial bribes are usually aimed at covering up for an inferior product or obtaining
new business or proprietary information. They can also involve industrial espionage,
where sensitive information is stolen or kickbacks or payoffs are made for trade secrets
or price schedules.
A toy manufacturer wants to use an auction to procure a large shipment of common
screws at the lowest possible cost. Which type of auction should the manufacturer use?
- Correct Answer ✔✔ Reverse auction
Reverse auctions are internet auctions in which suppliers attempt to underbid their
competitors; company identities are known only by the buyer. The manufacturer could
draw multiple bids for the screws and drive the suppliers to lower their prices to the
lowest level possible, saving the manufacturer money.
