Certified Supply Chain Professional CSCP Practice CSCP MCQ 1 — Questions and Answers
Question 1: Which supply chain strategy involves maintaining a base level of production capacity while using overtime, subcontracting, or inventory to handle demand fluctuations?
- Chase strategy
- Level strategy (Correct answer)
- Postponement strategy
- Collaborative planning strategy
Correct answer: Level strategy
The level strategy keeps production output constant over time, absorbing demand variability through inventory buildup, overtime, or subcontracting rather than adjusting workforce or capacity up and down.
Question 2: What is the primary purpose of safety stock in inventory management?
- To reduce ordering costs by enabling larger purchase quantities
- To buffer against variability in demand and supply lead times (Correct answer)
- To consolidate shipments and improve transportation efficiency
- To meet seasonal demand peaks predictably
Correct answer: To buffer against variability in demand and supply lead times
Safety stock is held as a buffer to protect against unexpected variability in both customer demand and supplier lead times, preventing stockouts when actual conditions deviate from forecasts.
Question 3: Which type of demand is derived from the production schedules of a parent item rather than direct customer orders?
- Independent demand
- Dependent demand (Correct answer)
- Stochastic demand
- Lumpy demand
Correct answer: Dependent demand
Dependent demand is calculated from the demand for a higher-level (parent) item using bills of materials; for example, demand for tires depends on planned automobile production, not on separate customer orders for tires.
Question 4: In supply chain risk management, which strategy involves sourcing the same product or material from multiple suppliers to reduce vulnerability?
- Vertical integration
- Sole sourcing
- Dual or multi-sourcing (Correct answer)
- Cross-docking
Correct answer: Dual or multi-sourcing
Dual or multi-sourcing spreads procurement across two or more suppliers, so that if one supplier experiences disruption, production can continue using alternative sources, reducing single-point-of-failure risk.
Question 5: Which term describes the practice of delaying product differentiation to the latest possible point in the supply chain?
- Forward buying
- Postponement (Correct answer)
- Vendor-managed inventory
- Cross-docking
Correct answer: Postponement
Postponement delays final product configuration or customization until actual customer demand is known, reducing the risk of building the wrong product mix and lowering finished goods inventory.
Question 6: Which forecasting method uses a weighted average of past observations where more recent data points receive higher weights?
- Simple moving average
- Exponential smoothing (Correct answer)
- Linear regression
- Delphi method
Correct answer: Exponential smoothing
Exponential smoothing assigns exponentially decreasing weights to older data points, meaning the most recent observations have the greatest influence on the forecast, making the method responsive to recent demand trends.
Certified Supply Chain Professional CSCP Practice CSCP MCQ 1
Which supply chain strategy involves maintaining a base level of production capacity while using overtime, subcontracting, or inventory to handle demand fluctuations?