CSCP CSCP Internal Operations and Inventory Questions and Answers 2

Question 1

Which inventory management approach focuses on reducing lot sizes and lead times to minimize work-in-process inventory throughout the production system?

Accepted Answer

Lean manufacturing

Answer

Materials requirements planning

Answer

Economic order quantity

Answer

Vendor-managed inventory

Question 2

What is the primary purpose of a bill of materials (BOM) in internal operations planning?

Accepted Answer

To define the components and quantities needed to manufacture a finished product

Answer

To calculate the total cost of goods sold

Answer

To schedule workforce shifts across production lines

Answer

To establish supplier payment terms

Question 3

In the context of inventory accuracy, what does cycle counting achieve compared to a full physical inventory?

Accepted Answer

It allows continuous verification of inventory records by counting a subset of items on a rotating schedule

Answer

It eliminates the need for any inventory record keeping

Answer

It only counts items that have been recently received

Answer

It replaces the need for an ERP system

Question 4

What does the term 'throughput' measure in internal operations?

Accepted Answer

The rate at which a system generates finished goods or services over a given period

Answer

The total amount of raw materials stored in a warehouse

Answer

The number of suppliers in the procurement network

Answer

The average employee productivity per shift

Question 5

Which strategy involves positioning inventory at a central point in the supply chain to delay product differentiation until customer orders are received?

Accepted Answer

Postponement

Answer

Forward buying

Answer

Speculative stocking

Answer

Cross-docking

Question 6

What is the main risk of maintaining excessively high safety stock levels?

Accepted Answer

Increased carrying costs and potential obsolescence

Answer

Reduced customer service levels

Answer

Lower warehouse utilization rates

Answer

More frequent stockouts