CSCP Supply Chain Planning and Execution 2 — Questions and Answers
Question 1: What is the key difference between 'push' and 'pull' supply chain execution?
- Push produces based on forecasts; pull produces in response to actual customer demand signals (Correct answer)
- Push is faster; pull is slower
- Push uses lean principles; pull uses agile principles
- Push requires more safety stock; pull eliminates safety stock
Correct answer: Push produces based on forecasts; pull produces in response to actual customer demand signals
Push systems build inventory based on demand forecasts, while pull systems replenish only what has been consumed by actual demand.
Question 2: Which transportation mode typically offers the lowest cost per ton-mile for large, heavy shipments over long distances?
- Rail (Correct answer)
- Truck
- Air freight
- Parcel carrier
Correct answer: Rail
Rail transport offers the lowest cost per ton-mile for bulk and heavy freight over long distances due to high capacity and fuel efficiency.
Question 3: In warehouse management, 'cross-docking' refers to:
- Transferring inbound shipments directly to outbound vehicles with minimal or no storage time (Correct answer)
- Storing products in multiple warehouse locations
- Processing returns and sending them back to suppliers
- Sorting mixed pallets into single-SKU pallets for storage
Correct answer: Transferring inbound shipments directly to outbound vehicles with minimal or no storage time
Cross-docking moves products from receiving directly to shipping, bypassing traditional storage and reducing handling and holding costs.
Question 4: What is the purpose of a 'Warehouse Management System' (WMS)?
- To automate and optimize warehouse operations including receiving, putaway, picking, and shipping (Correct answer)
- To manage supplier contracts and purchase orders
- To track fleet vehicles and driver hours
- To process customer invoices and payments
Correct answer: To automate and optimize warehouse operations including receiving, putaway, picking, and shipping
A WMS directs and records all warehouse activities to maximize efficiency, accuracy, and throughput within the facility.
Question 5: Which document serves as the primary contract between a shipper and a carrier for freight transportation?
- Bill of lading (Correct answer)
- Purchase order
- Commercial invoice
- Packing list
Correct answer: Bill of lading
A bill of lading is the legal contract of carriage, a receipt for goods, and a document of title for freight shipments.
Question 6: In distribution requirements planning (DRP), what information flows from distribution centers back to the manufacturing plant?
- Time-phased net requirements for finished goods that need to be replenished (Correct answer)
- Customer sales orders and invoices
- Warehouse capacity constraints and labor availability
- Transportation carrier performance metrics
Correct answer: Time-phased net requirements for finished goods that need to be replenished
DRP consolidates replenishment needs from all distribution points and passes those requirements upstream to the manufacturing plan.
CSCP Supply Chain Planning and Execution 2
What is the key difference between 'push' and 'pull' supply chain execution?