CSCP Certification Exam Questions with AI Explanations

QUESTION: 106

A key challenge in managing the supply chain for an innovative product is that:

contribution margins will be slim.
the product life cycle will be long.
product demand will be volatile.
inventory levels must be minimal.

Answer(s): C

Reveal Solution Next Question

QUESTION: 107

Bullwhip effect can be reduced by which of the following combinations of actions?

Information sharing, batch ordering, variable pricing
Shortage gaming, frequent ordering, consistent pricing
Information sharing, frequent ordering, variable pricing
Information sharing, frequent ordering, consistent pricing

Answer(s): B

Reference:

https://www.ascm.org/ascm-insights/cracking-the-bullwhip-effect/

Reveal Solution Next Question

QUESTION: 108

A company would like to benchmark its inventory levels against other companies.
Which of the following metrics is best to use for this purpose?

Fill rate
Days of supply
Net asset turns
Cash-to-cash cycle time

Answer(s): D

Explanation:

CCC has days inventory outstanding, days sales and payables outstanding values in its formulae. A breakup of all this if available can be a good metric as it can talk of various parameters connected to the inventory position, negotiating power with the supplier/ distributors etc.

Reference:

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwj_98PXlP7xAhW98uAKHYMkCB0QFjAAegQIBxAD&url=https%3A%2F%2Fwww.researchgate.net%2Fprofile%2FMohamed_Mourad_Lafifi%2Fpost%2FWhere_can_I_find_SCOR_metrics_any_level_to_use_in_a_supply_chain_evaluation%2Fattachment%2F5f91ad2c7600090001f0280e%2FAS%253A949469478666249%25401603382572650%2Fdownload%2FSupply-Chain%2BBenchmarking%2Bwith%2BSCOR.pdf&usg=AOvVaw33LXq2CKgYsqM6Hie7pR1P

Reveal Solution Next Question