CSCP Certified Supply Chain Professional Question and Answers

Consolidate production outside the trading bloc to reduce total costs.

Consolidate production within the trading bloc to reduce tariffs paid.

Outsource the production of products with low sales volumes to reallocate capacity.

Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale.

increase.

decrease.

not change.

become less predictable.

Calculating a risk index for each facility

Establishing external risk communications processes

Projecting the ability of a facility to recover from an event

Preparing for risk management accreditation

Contracting with a third party to process returned goods

Designing products that are easy to disassemble

Working to delay regulations that require accepting returns

Providing support and service for proper product use

reduce uncertainty for multinational firms regarding legal, import/export, labor, and environmental standards across countries.

set minimum levels of compliance across a broad range of transactional areas for businesses operating in multiple geographic regions.

align the needs of businesses to increase profitability and the needs of individual countries to ensure their specific legal requirements are met.

help ensure that markets, commerce, technology, and finance promote advancement of economies and societies everywhere.

Best of breed packages

One integrated package

Service-oriented architecture

Software-as-a-service

Lower cost of manufacturing

Increased product performance

Greater responsiveness in marketing and production

Reduced complexity of bills of material

develop criteria for prospective partners.

develop policies for alliances.

select initial partners.

conduct a pilot implementation.

implement statistical process control for the component.

bring manufacturing of the critical component in-house.

develop an alternate source of supply.

certify the supplier of the component.

Distribution requirements planning

Sales and operations planning

Rough-cut capacity planning

Production activity control

Focusing on reducing setup times

Implementing a firewall to limit access to supply and demand data

Working with key suppliers to reduce costs and lead times

Working with trading partners to reduce channel redundancies

Sales and operations planning

Distribution requirements planning

Supply Chain Operations Reference-model

Supply chain event management

the identification of sources capable of producing the materials.

the availability of low-cost labor and energy.

complying with specific import/export issues.

balancing the difference between piece price and total cost.

Paying for raw materials and getting paid for the product

Shipping the product from the warehouse and receiving it at the customer's location

Paying for raw materials and sending an invoice to the customer

Billing the customer and getting paid for the product

comparison of key metrics for companies in the same industries across the globe.

feasible business plan that can be shown to global potential investors.

trusted and credible framework for reports regarding sustainability practices.

transparent collaboration between non-profit organizations and governments.

Returns from customers will decrease.

Number of supplier orders will increase.

Number of customer orders will increase.

Average supplier order size will increase.

Customer service ratio metrics

Market segmentation

Customer relationship management (CRM)

Supply Chain Operations Reference (SCOR®)

Modular logistics

Reverse logistics

Mixed model

Lateral

Implement a higher-speed data communications network.

Change procedures so data is communicated more frequently.

Identify the root causes for the delays.

Map and analyze the value stream.

average seasonal demand to the average demand for all periods.

average demand for all periods to the average seasonal demand.

average seasonal demand to the standard deviation of the demand for all periods.

standard deviation of the seasonal demand to the standard deviation of demand for all periods.

Product design

Selecting supporting information systems

Identifying labor force requirements

Identifying training programs

From supplier to customer

From customer to manufacturer

From customer to supplier

From supplier to manufacturer

Selecting favored supplier partners

Developing efficient customer channels

Focusing on short-term forecasting accuracy

Working with research and development on slow-moving products

efficient material replenishment processes.

clearly identified roles for the buyer and seller.

a shared vision of added value.

a sole-source agreement.

Inventory turnover ratio can be reduced.

Aggregate demand is more accurate than disaggregate demand.

The planning time fence can be adjusted as needed.

The supplier shares some risk for holding inventory.

Local distribution centers serving retailers and online sales

Centralized cross-docking facilities serving retailers and online sales

A centralized distribution center serving retailers and direct shipment from the factory serving online sales

A centralized distribution center serving retailers with transshipment arrangements serving online sales

Customer expectations are clearly defined.

Supplier execution is too low.

There is a gap between expected performance and perceived performance.

There is a gap between what was indicated and what was accomplished.

products have been standardized.

products have a modular design.

production processes have been standardized.

production processes have been simplified.

compete for customers based on service.

reach a larger number of potential customers.

reduce inventory to improve cash flow.

focus on attracting new customers.

Price concessions

Make-or-buy

Distribution warehouse locations

Freight terms

Customer segmentation

Customer-facing ordering systems

Customer relationship management (CRM)

Supply Chain Operations Reference (SCOR®)

Offering a discount on new purchases when used products are returned

Reducing the amount of packaging material used in shipping

Manufacturing products in batches consistent with full-truckload shipments

Batching returns of defective components to the suppliers

eliminate the root causes of problems.

improve interorganizational communication.

develop better written procedures.

reduce product costs.

a quick response program.

quality function deployment.

total quality management.

early supplier involvement.

create a contract for the new market.

enter into a partnership.

form a strategic alliance.

acquire the distributor.

create a more loyal customer base.

improve customer satisfaction rates.

increase market share.

target higher-profit customers.

a never-ending effort to expose and eliminate root causes of problems.

a never-ending effort by the management team to reduce cycle time.

identifying and implementing big-step improvements within a process.

a process in which a supplier commits to replenishing inventory based on demand without receiving replenishment orders.

satisfying customer expectations about availability and delivery at an acceptable total cost.

meeting promised location and on-time delivery goals with minimal use of expediting.

establishing inventory and delivery goals with various customers that fulfill the firm's profit objectives.

providing accurate in-transit and delivery information to customers and salespeople.

Build-to-order scheduling

Push-pull replenishment

Collaborative planning, forecasting, and replenishment

Vendor-managed inventory

formal and informal communication.

interconnected information systems.

one partner regularly exercising power.

standardized terms of agreement.

the impact on customers using Just-in-Time manufacturing.

the financial stability of suppliers.

matching the supply chain to product type.

whether to use custom or standard parts.

minimizing transportation costs.

reducing inventory levels.

taking a systems approach.

implementing advanced technologies.

Customer differentiation

Order winner segregation

Market segmentation

Channel definition

Analyzing the buying history for each of the market segments

Asking the manufacturer's direct customers

Conducting a market research project

Sending samples of potential future products to the final customers

Inventory levels

Contractual obligations

Customer profitability

Scheduled marketing activities

Reducing the size of the sales force by automating activities

Gaining a better understanding of customer requirements

Implementing automated inter-organizational processes

Focusing sales efforts on the most profitable customers

wider variety.

shorter lead time.

higher profit margins.

lower sales volumes.

Production equipment productivity

Net asset turnover

Value-added productivity per employee

Upside flexibility

Cost leadership

Service differentiation

Customer focus

Market responsiveness

Delphi technique

Survey method

Causal method

Time series analysis

Being the low-price leader

Providing the highest-quality service

Providing mature products with stable sales

Emphasizing the quality of the product

complete strategic business planning of facilities.

complete forecasts at the item level.

aggregate demand for production planning.

develop the master production schedule.

Selling and leasing back equipment.

Renting equipment on consignment.

Using a third-party logistics provider.

Using an owner-operator fleet.

on-time delivery of shipments due to higher inventory levels.

cost structure due to economies of scale.

access to smaller markets due to localization.

risk visibility due to inventory consolidation.

Introduction

Growth

Maturity

Decline

Profits are maximized.

Retention of key customers is increased.

Product options are increased.

Transaction costs are decreased.

A manufacturer holds inventory of key components to maintain a level production schedule.

A manufacturer of seasonal products builds finished-goods inventory before the peak selling period.

A distributor maintains safety stock of slow-moving items at a central distribution center.

A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

averaging total demand and spreading it evenly across all items.

disaggregating demand to the item level based on marketing input.

disaggregating demand to the item level based on historical proportions.

allocating demand to each production site.

Generating customer leads

Generating graphic sales models

Measuring customer preferences

Identifying customer margins

Sales and marketing refers to SCOR to improve demand generation.

Production and engineering uses SCOR best practices to design a new "make" process flow.

Distribution and logistics selects suppliers from the SCOR reference list.

Marketing and development incorporates SCOR Level I metrics for new product design.

Group

Channel

Regional

Location

A shoe company that wants to penetrate a foreign market

A business that owns plants and warehouses globally

A financial services company that wants to expand its services

A cable television company that wants to add services

Reverse auctions

Sales force automation

Finite capacity planning

Point-of-purchase metrics

Sales and marketing refers to SCOR to improve demand generation.

Production and engineering uses SCOR best practices to design a new "make" process flow.

Distribution and logistics selects suppliers from the SCOR reference list.

Marketing and development incorporates SCOR Level I metrics for new product design.

lower distribution center operating costs.

fewer transportation planners.

less variability in picking and packing time.

less variability in transportation costs.

$29,000,000.

$15,750,000.

$10,500,000.

$ 5,250,000.

Delivery lead times are consistent.

Risk pooling benefits are negated.

Distribution overhead is increased.

Order-fill rate is decreased.

fourth party logistics providers.

third party logistics providers.

retail services providers.

distribution services providers.

drop shipping.

cross-docking.

breaking bulk.

freight equalization.

United Nations (UN) Global Compact

Incoterms®

Export Trading Company (ETC) Act

Omnibus Foreign Trade and Competitiveness Act

Health and safety concerns

Competitor actions

Government regulations

Customer perceptions of value

Consumption rate

Qualified supplier

ABC classification

Number of sales transactions

Level production schedule

Cross-functional alignment

Increased sales

Strategic business plan

Business analytics

Electronic commerce

Enterprise resources planning (ERP)

Advanced planning and scheduling (APS)

Kaizen

Kanban

Six Sigma

Lean

Sharing product demand forecasts with the subcontractor

Conducting periodic compliance audits of the subcontractor

Increasing safety stock for products to be produced by the subcontractor

Including penalties for late deliveries in the contract with the subcontractor

Reducing the level of inventory

Decreasing the cash-to-cash cycle

Integrating processes between departments

Satisfying customer requirements

Time series

Seasonality

Delphi method

Causal method

voluntary initiative to advance universal pnnciples on human rights, labor, anticorruption. and environmental stewardship.

credential that indicates a multinational organization is upholding minimum standards of legal compliance and financial reporting.

set of guidelines encouraging firms that plan to expand into other countries to adhere to the standards of their home countries.

set of minimum standards for a wide range of business practices that allows organizations to receive global compliance certification.

Pareto diagram

Fishbone diagram

Process flow diagram

Operation process chart

Conversion of assets to overhead costs

Conversion of overhead costs to assets

Conversion of overhead costs to liabilities

Conversion of assets to equity

Order entry representative

Sales manager

Master scheduler

Operations manager

Sales and operations planning (S&OP)

Advanced planning and scheduling (APS)

Supplier relationship management (SRM)

Customer relationship management (CRM)

Automated storage/retrieval system (AS/RS)

Automated guided vehicle system (AGVS)

Robotics

Sortation

How much inventory should be ordered at one time, and when will the order be placed?

What is the importance of the inventory item, and how will the inventory items be controlled?

How much inventory should be ordered at one time, and what is the importance of the inventory item?

When will the order be placed, and how will the inventory items be controlled?

Causal

Time series

Judgement

Market survey

share forecasts for the products with each other.

obtain orders for the products and enter them into the master schedule.

create joint business plans for the products.

negotiate prices and profit expectations for the products.

Manufacturing new products from worn tires

Utilizing wastepaper as packaging material

Making animal feed from fresh food scraps

Extracting precious metals from used electronics

Place smaller orders with suppliers.

Pool inventory and the forecast.

Open more outlet stores.

Negotiate lower costs with suppliers.

Analyzing a supplier relationship management (SRM) system

Identifying non-value-added activities

Planning kaizen events

Implementing a quality improvement initiative

Fastest to market

Lowest landed cost

Product improvements

Supply flexibility

Publish their internal positive factors.

Emphasize their internal negative factors.

Take advantage of external positive factors.

Control external negative factors.

Keep track of the lot number at factory floor.

Maintain a relationship with the raw material supplier.

Conduct a reasonable country of origin inquiry.

Disclose distribution channel and transportation tactics.

Purchasing planning

Demand planning

Distribution planning

Fulfillment planning

improve the occupational health and safety of employees within the firm's buildings and factories.

demonstrate compliance to allow for faster and easier movement of goods across country borders.

reduce costs by becoming eligible for tax advantages offered for meeting climate goals.

provide guidance in monitoring the impact of activities throughout the life cycle.

Investing sufficient capital

Building mutual trust

Integrating information systems

Developing a common culture

Cost per unit

Time-to-market

Component inventory levels

Equipment utilization

Proactive in anticipating events and fast recovery from undesirable events

Reactive in anticipating events and fast recovery from undesirable events

Proactive in anticipating events and slow recovery from undesirable events

Reactive in anticipating events and slow recovery from undesirable events

Vendor-managed inventory (VMI)

Supply chain event management (SCEM)

Distribution requirements planning (DRP)

Collaborative planning forecasting, and replenishment (CPFR)

Business case

Work breakdown structure

Project management plan

Proposed solutions

Supplier scorecard

Benchmarking

Balanced scorecard

Quoted-benefit analysis

Mitigation

Recovery

Prevention

Diversification

Expensive material that is critical to the finished product

 Inexpensive material for which there are several substitutes 

Expensive material for which there are many sources

Inexpensive material that is critical to the finished product

contribution margins will be slim.

the product life cycle will be long.

product demand will be volatile.

inventory levels must be minimal.

Financial

Social

Process

Strategic

Country where goods were produced

Contract for shipping and ownership of goods

Description and terms of sale of goods

Means of payment for import/export of goods

Stochastic

Proprietary

Bill of material (BOM)

Product specifications

increased processing costs.

increased buffer capacity.

reduced requirement for support materials.

reduced lead times.

Customer acquisition

Customer retention

Customer dependency

Strategic customer care

accounting practices.

biodiversity protection.

conflicts of interest.

waste reduction.

consolidator.

overseas carrier.

shipping association.

freight forwarder.

a competitor's manufacturing processes.

a firm's leadership ranking relative to industry peers.

which processes require improvement.

that no further improvement is possible.

Managing multifaceted relationships

Negotiating a win-win deal

Planning for change

Conducting pulse checks

ISO 31000

ISO 14001

ISO 26000

ISO 9001

optimize production runs for the components.

use less-specialized machinery.

decrease single-minute exchange of die processes.

increase planning and control.

Manufacturer's volume flexibility

Order-fulfillment lead times

Distributors' order-fill rates

Supply chain inventory days of supply

Throughput

Cube utilization

Filled pallet positions

Labor efficiency

Produce both product families to forecast and push through the distribution system.

Produce both product families only after receipt of a distributor order.

Produce the current product family to forecast and the new product family to order.

Produce the current product family to order and the new product family to forecast.

Magnetic stripes

Universal product codes

Radio frequency devices

Local area network

Risk pooling is facilitated.

Demand variability is reduced.

Service levels are increased.

Lead times are reduced.

Measure, fulfill, document, model

Source, document, manage

Measure, procure, fulfill, model

Source, procure, fulfill, manage

Standardizing components used in a product family

Expanding operations to multiple locations

Consolidating manufacturing locations

Reducing the supplier base for commodity-type components

allocate available storage space to optimize handling costs.

address trade-offs between space and material handling needs.

effectively design its inbound and outbound dock areas.

add value to the product through modification, labeling, and packaging.

Determine the root cause of the quality issue.

Separate the non-conforming products.

Trace the location of the faulty product in the supply chain.

Replace faulty products when they are returned by the end user.

environmentally sensitive engineering.

gray box design.

green manufacturing.

sustainability in operations.

Globally integrated

Domestic

Multinational

Virtual

storing cycle inventory in the distribution centers.

storing finished-goods inventory at the manufacturing plants.

transportation from the distribution centers to the customer.

transportation from the plant to the distribution centers.

Preventing a group of employees from forming a collective bargaining (union) group

Paying different wages in different parts of the world for a given job classification

Requiring an individual to pay a fee for consideration in hiring or promotion decisions

Withholding certain employment opportunities from specific groups of people

Reduce the cost of serving them.

Target them for higher margin services.

Target them for greater attention.

Charge them for administrative services used.

Single sourcing a product that makes the highest annual profit

Outsourcing a product that is not well suited to your operations

Identify multiple sources for a product that has a potential for supply chain disruption

Internally manufacturing a product that has a high level of technical intellectual property

receiving incoming goods.

assigning storage locations.

assembling outbound orders.

forecasting product demand.

Reduced need for bar codes and radio frequency identification technology

Reduced material handling costs

Ease of control and count accuracy

Maintain a cleaner shop floor

cost of ownership metrics.

quality targets.

on-time delivery.

agreed-upon metrics.

Developing alternatives to key suppliers

Setting aside funds for disruption-recovery efforts

Charging each supply chain partner a portion of risk cost

Creating extra inventory to cover disruptions in the supply chain

enhance the competitive advantage.

gain access to proven management tools.

reduce the threat of organized labor.

reduce the cost of operating in multiple countries.

production lead time.

local competition.

documentation complexity.

product standardization.

returned.

assembled.

stored.

distributed.

improve competitive advantage through cost control.

avoid manufacturing downtime due to material shortages.

maximize security for customer shipments.

minimize the impact of natural disasters.

planning.

forecasting.

aggregating.

shaping.

supply and dependent demand.

customer service and inventory costs.

transportation and warehousing costs.

inventory levels and decision-making costs.

Inventory levels at the manufacturer will decrease.

Lead times as seen by the customer will increase.

Production efficiencies at the manufacturer will increase.

Transportation costs as seen by the customer will increase.

Source from domestic suppliers.

Conduct a risk assessment.

Carry additional safety stock.

Spread logistics across multiple carriers.

Uniqueness of operations

Corporate profitability

MRP and MRP II processing

Industry benchmarks

quality, and process.

value, and sustainability.

process, and environmental.

value, and environmental.

Total cost per unit

Inventory turnover

Actual versus budget cost

Carrying costs

Improve product quality.

Increase inventory levels.

Increase information sharing.

Reduce product complexity.

optimizing operations scheduling.

translating plans into action.

concentrating on production.

linking to the transportation management system.

Shipment manifest

Bill of lading (B/L)

Letter of credit (L/C)

Freight invoice

High levels of trust

History of successful collaboration

Awareness of cultural differences

Formal contracts defining the relationship

Bonded warehouse

Trading bloc

 Free trade zone (FTZ) 

Citizen zone

Prioritizing shop orders to meet demand

Facilitating the use of resources to meet demand

Using demand to calculate takt time

Considering all sources of demand

responsiveness to customer’s requirements

working capital utilization

agility to meet changing customer requirements

total supply chain accounts receivable