CSCP

CSCP practice questions, page 8 of 37, with answer review and explanations.

Question 36

A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:

  1. $29,000,000.
  2. $15,750,000.
  3. $10,500,000.
  4. $ 5,250,000.

Question 37

Continuous improvement is best described as:

  1. a never-ending effort to expose and eliminate root causes of problems.
  2. a never-ending effort by the management team to reduce cycle time.
  3. identifying and implementing big-step improvements within a process.
  4. a process in which a supplier commits to replenishing inventory based on demand without receiving replenishment orders.

Question 38

The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and:

  1. design history.
  2. available capacity.
  3. inventory balance.
  4. warehouse location.

Question 39

Supercar - Supercar is an online vehicle sales website specializing in single manufacturers Sports Utility Vehicles (SUVs) and saloons. A vehicle has two key elements, power unit and body style. The manufacturer offers three choices of power unit: petrol, diesel and hybrid. There are 3 main body styles: Saloon, Hatchback and SUV. SUVs only come as petrol and diesel options. Hybrid is available for Hatchback only. The site will allow an order to be processed if the chosen vehicle configurations are in stock, otherwise a message will be displayed asking the user to try again later. Based on the specification the following classification tree has been developed: Based on the "Supercar" classification tree the following positive test cases have been created: Which test case is needed to complete the set?

  1. Power Unit: Hybrid, Body Style: Saloon
  2. Power Unit: Diesel, Body Style: Hatchback
  3. Power Unit: Petrol, Body Style: Saloon
  4. Power Unit: Hybrid, Body Style: Hatchback

Question 40

Using an independent service provider for logistics would be most appropriate in which of the following situations?

  1. A shoe company that wants to penetrate a foreign market
  2. A business that owns plants and warehouses globally
  3. A financial services company that wants to expand its services
  4. A cable television company that wants to add services