CSCP L4 V4054 Instructions The number of attempts remaining is 1 Enter Your Details 1 / 100 Spark ltd has some inventory with medium to low value and steady demand. How they could manage this item? Set up EOQ Setup shelf life Set average unit of uses grouping in smallest unit of consumption 2 / 100 A buyer runs an e-auction for the supply of paper beverage cups. Six suppliers participate and the auction is set up so there may be a post-auction negotiation with the two bidders who win the auction. Game of Chicken Game of Trust Prisoner’s Dilemma Stag Hunt 3 / 100 “Inaccurate deliveries as a percentage of total number of deliveries for a period” determines which KPI? Delivery on time Average lead time Supplier response time Delivery in full 4 / 100 At which stage in the typical procurement cycle can procurement add most value? At the point the business is setting out and defining their needs At the point the business is ready to source the market At the point the business is selecting the right supplier At the point the business is to start the final negotiation with the short listed vendor. 5 / 100 Kalinski, a new joiner at TFY Limited is conducting a study to identify some of the important aspects of global procurement functions. You are required to assist him identify and eliminate the incorrect aspect he has captured? Centralized procurement strategy Focus on economies of scale Decentralized procurement strategy Corporate wide standardization and benchmarking 6 / 100 You Supplier is playing Prisoner’s Dilemma, But you want to change the game to chicken, what you would do? create the conditions that is favorable to you Set payment terms once you have verified and delivered to your satisfaction reject calls for collaboration. Reiterate your position and demands. stop proceedings, suggest there might be a different way to look at things 7 / 100 Which of the following is not a reason for increased importance of S&OP? Increased capacity. Lesser variance of products. Strategies are simplified. Precise demands by key customers. 8 / 100 Which is not Risk Mitigation strategy? Risk Avoidance Risk Reduction Risk Sharing Risk Tickling 9 / 100 In case of very high value and a relatively low Demand products Keeping spares parts and support equipment determining the range and quantity of items support inventory for initial period of service All of the above 10 / 100 The EQQ determines which of the following? The point at which a company should re-order The relevant inventory flow for a particular time period The point at which the sum of carrying costs and ordering costs is maximized The point at which carrying costs equal ordering costs 11 / 100 In case of periodic review for A class item, which inventory policy should be followed? Periodic Review and Maximum order level Periodic Review, Order point and Maximum order level Order Point and Order Quantity Order point and Maximum order level 12 / 100 Which Characteristics do not provide value to customers ? Price Product Quality Delivery 13 / 100 Postponement is: Delayed differentiation Resequencing of processes high product variety Cancelling production 14 / 100 Harper, Head of Procurement at TFR Limited is concerned with incorrect application of cost management principles in the organization related to Global Procurement Activity. Help him to identify the most important criteria, which he should focus on? Comparing various options with local Location of vendor holding company Lowest Total cost of Procurement Vendor Name 15 / 100 Telsa is planning to bring Pi phone in this year. Which forecasting method they should choose? Moving Average Forecasting Regression analysis Adaptive Smoothing Delphi Techniques 16 / 100 which is usually not included in planning the statement of work work approvals Process flows in the supplier’s facility use of subcontractors Authorized personnel 17 / 100 Re-order quantities should consider which of the following? Freight cost for shipment Cost to unload the shipment Standard package quantity Price breaks for quantity ordered 18 / 100 “Inaccurate deliveries as a percentage of total number of deliveries for a period” determines which KPI? Delivery on time Average lead time Supplier response time Delivery in full 19 / 100 Which of the following may cause risk while planning and preparation a. b. c. d. Delays in delivery, installation and testing Lack of capacity of individual contractors Final product of service does nor meet expectations Delays in obtaining approvals 20 / 100 Which supplier risk may effect on response time? Supplier inability to obtain trade finance Supplier inability to support new products Failure of an outsourcing strategy Rapid degradation of supplier performance 21 / 100 You want to forecast demand for A class item, which can be followed from below options? Consider Seasonal fluctuations Methodical forecast manual input to forecasts none of these 22 / 100 How to collect sales consumption data? Store Promotion Data Events from Trading partner Point of Sale Data None of the above 23 / 100 How to handle frequency of physical stock count for C class Items Shelf life system of control Just in time system two-bin system of control Using bin card and ledger system 24 / 100 Which of the following in not the way for Manipulating Demand Data altering price structures, negotiating with customers smoothing shipments customer proactiveness 25 / 100 Which of the following is a part of collaboration agreement? Develop Inventory policy changes Product introductions Develop a scorecard to track key supply chain success criteria Agreement on product change and forecasting process 26 / 100 TFR Limited has initiated a project across all key Function in the Global Procurement Department to eliminate the inefficiencies in order to manage the costs better. You are required to recommend the suitable action for the company? Consideration of current economic situation Increase of non-value added activities in procurement cycle Need for innovation Value addition 27 / 100 Postponing the point of differentiation results in improvement in customer service. reduction in product obsolescence. reduction in inventories. reduction in time period for which forecasting is carried out at the variant level 28 / 100 Which of the following Data is a must for Safety stock calculation? Order Quantity Current Inventory Lead time Review Interval 29 / 100 Which of the following is not a benefit of sales and operations planning? The S&OP process eliminates the need to have finished goods inventory. The S&OP process results in better customer service. The S&OP process provides better visibility into future capacity problems. The S&OP process provides a single set of numbers to run the business. 30 / 100 If you would like to forecast for 10-12 month, which of the following you would follow? Business Plan Sales and Operational Planning MPS MRP 31 / 100 Which of the following terms describes an agreement where a supplier agrees to provide an estimated quantity of items over an agreed period at an agreed price? Blanket order Spot order Major works order Fixed price order. 32 / 100 Declining demand in Probabilistic Demand for C class Items the use desired service level Keeping enough safety stock Increase level of cycle stock Use of perpetual inventory 33 / 100 Factors to consider in re-order point timing are: Space available to store the inventory Current on-hand inventory levels Lead time from the supplier Forecast consumption 34 / 100 To Make MRP which of the following info needed? Where to deliver How much needed What condition needed. When to prepare 35 / 100 Sales and Operational planning is one type of.. Master Production Scheduling Resource planning Distribution planning Capacity Planning 36 / 100 Spark ltd. has decided to go with Dynamic Order Cycle for perishable products. Which of the following right approach for this? The lowest day between orders The greatest number of days between orders to protect service An average of the days between orders All of the above 37 / 100 Setting up distribution facilities Strategic Planning decisions Tactical decisions Operational decisions Continual Planning 38 / 100 who should compile the data to measure KPls? The purchaser The supplier An independent third party The person who has easiest access to the information 39 / 100 Which of the following is not an element of contract administration? Preparing contract administration plan Convening kick off meetings Managing contractor's finance Training for batter contract management 40 / 100 ABC Ltd. has some products that have cyclical demand within a week, how to manage it? Demand Profiles Demand Classification Safety Stock Optimization Lead-time variability 41 / 100 Which of the following tasks are required in the ‘pre-award phase’ of the purchasing cycle? Identification of needs and producing specifications if required Expediting, reviewing progress and processes Reviewing quotations, gaining authorisation and placing orders Assessing supplier performance and checking invoice details if required. 42 / 100 Supplying the product to customer is …… Operations Level Decision Planning Level Decision Strategic Level Decision All of the above 43 / 100 An organisation will issue a ‘restricted tender’ to which of the following types of supplier? International suppliers Pre-qualified suppliers Suppliers based in the organisation’s local area Suppliers not used in the past. 44 / 100 Supply Chain Integration is working together of.. a. b. c. d. Operations, Customers, and Suppliers Procurement, Finance and Suppliers Production, Warehouse and Distribution Production, Operations and Suppliers 45 / 100 Suppliers are responsible inventory replenishment on which mode of CPFR? Basic CPFR Developed CPFR Advanced CPFR All of the above. 46 / 100 The cost of insurance and taxes are included in Cost of ordering Set up cost Inventory carrying cost Cost of shortages 47 / 100 In a situation where there are low economies of scale and a long response time, the supply chain strategy should focus on ______. an accurate short-term forecast with strong tactics and less consideration of history production flexibility since detailed and accurate forecasting is not of critical importance responsiveness at the expense of forecast accuracy both forecast accuracy and responsiveness because they are equally important 48 / 100 A valued supplier of a highly critical complex component is having quality problems. Demand for such components are falling and the supplier’s cost of failures has increased. The buyer is worried the supplier might want to pull out so offers to supply a process expert for free to work with them and help improve the situation. What kind of game is it? Game of Chicken Game of Trust Prisoner’s Dilemma Stag Hunt 49 / 100 when should the draft contract terms be issued? Immediately before the contract is signed When asking for quotations or inviting tenders Before the request for information After evaluating bids 50 / 100 Which Policy should be looked after to Set up inventory policy Cycle stock policy Storage system Policy Information handling policy Inventory Review policy 51 / 100 How wealth is created ? creating resources manufacturing Adding value proving services 52 / 100 Every perishable order management system should consider potential out-of-stock for items that have already been ordered but are in a ‘need’ status. Which can facilitate this? Days on hand compared to the lead time of the item The lowest day between orders to minimize inventory, The greatest number of days between orders to protect service Average of the days between orders in an effort to optimize inventory 53 / 100 A Material being supplied has increased in price due to currency fluctuation. What is best option? Reduce Procurement in that currency Monitor Other Currency Exchange Rate Look for alternate source of supply Procure in a Consortium 54 / 100 How to Manipulate a given demand pattern. Seasonal Demand pattern Altering price structures negotiating with suppliers consolidate shipments 55 / 100 In case of continuous review for C class item, which inventory policy should be followed? Periodic Review and Maximum order level Periodic Review, Order point and Maximum order level Order Point and Order Quantity Order point and Maximum order level 56 / 100 Which of the following is useful to Control of C class Items Relatively short review interval. Inventories should be grouped in smallest unit of consumption The time supply to use should be based as much on use rate All of the above 57 / 100 Company image may be directly influenced by treating suppliers in a fair and equitable manner. complying with regulatory requirements. sustainability practices of suppliers. treating suppliers in a fair and equitable manner, sustainability practices of suppliers. 58 / 100 A supplier audit has shown non-conformity in the suppliers quality audit. What is best option? Provide training to supplier Ask for report of supplier’s own audit Prepare a KPI list to reduce non-conformity Create a project for corrective action 59 / 100 Which of following is ecommerce holding cost? Audit Cost Labor Cost return cost interest cost 60 / 100 How to handle Shelf Life Constraints for perishable items? Date products as they enter the warehouse Place items with soonest dates in the front Load new items with the latest dates in the back Release items in the front first 61 / 100 Which issue is not prominent for probabilistic inventory control system Frequency of inventory status determination Safety Stock determination Timing of replenishment order determination Determination of replenishment order size 62 / 100 Which of these must always be on an invoice? Delivery date Short description of goods/services provided Location of delivery Full description of goods/services provided 63 / 100 Which of the following source demand arrives from? business conditions Competitive factors Market trends Intercompany 64 / 100 Which of the following of CPFR deals with producing, stocking? Strategy and Planning Demand and Supply Management Execution Analysis 65 / 100 Which of the following is not true about CPFR? It can make products more consistent. It is time consuming. It aids in forecasting accuracy. It is good for low-volume items. 66 / 100 When the unit value of an item is extremely high- how can you stock those? by stocking minimum Safety Inventory Keeping Good relations with suppliers stocking pool of spare parts Incorporating Vendor Managed Inventory 67 / 100 Which of the following is NOT an example of “Early Warning Indicator (EWI)? A sudden deterioration in delivery date KPls new order processing system has bugs Credit-control system resets in every month A supplier starting to chase invoices before their due date 68 / 100 Setting up Warehouse layout is… Operations Level Decision Planning Level Decision Strategic Level Decision All of the above 69 / 100 Failure to complete procurement programme on schedule, what to do to mitigate? Understand the BATNA Invest in market knowledge. Introduce credit checks. Build and maintain relationship 70 / 100 X Ltd trying to figure out where to get information for demand forecasting? Which of the following is not the source Promotions Intracompany Spare parts Customers 71 / 100 Which of these does not apply to spot-purchases? Used for low-value purchases Risks increasing maverick spend Requires detailed planning and market investigation Used for urgent requirements 72 / 100 How can you Estimate and influence demand for important inventories? Perpetual inventory management Contact with key customers Monitoring replacement parts none of the above. 73 / 100 Perpetual inventory should be for Regular Items Expensive items Occasional items all items 74 / 100 Which of the following is not required by Rough-Cut Capacity Planning ? Bills of resources Bottleneck operation list Critical Material list Subcontracting decision 75 / 100 A deficiency Notice provides Records poor performance & fix time for remedy Objective Achievement and Action plan Allows permissible consequences for supplier Process of liquidate damage clauses 76 / 100 IKEA Makes different parts of a furniture separately that customers can put together all the necessary pieces and make their furniture of their own likings. Which of the following supply strategy IKEA is following? The make-to-stock Engineer-to-order Package to order Assemble-to-order 77 / 100 Which of the following describes when a supplier appraisal should take place? After the goods have been delivered but before the invoice is paid When liquidated damages are included in a contract At the end of the financial year Before any orders are placed. 78 / 100 To mitigate Risk of late delivery of goods or services Robustly apply KPls and targets Hold inventory. Implement ongoing monitoring of high risk/high value suppliers. Manage contract from the outset, and pick problems up early 79 / 100 You decided to outsource supply of a product to a vendor to reduce probability of its occurrence? risk avoidance risk acceptance risk transference risk mitigation 80 / 100 Which of the following would be a way to reduce Lower product price keep average cost utilize cycle counting Lower documentation 81 / 100 Which of following information needed for DRP? Scheduled Received Date Ordering Date Production Quantity Sales Quantity 82 / 100 Which of Following question is suitable for Trust Game? What is easy to give but would make a big impact? Are our arguments robust? Are we likely to need to let the other party down on the deal? What resources do we need to catch the bigger prize? 83 / 100 The purpose of supply chain management is to_______. increase the production level manage and integrate supply and demand management enhance the quality of a product and services provide satisfaction to the customer 84 / 100 Martin, Head of HR has listed down the internal duties of the global purchasing manager in an organization. Which of the duties she should exclude as it is not part of internal duties? Collaboration with the internal network Effective management of supplier relationships Making operating purchasing decisions Definition of purchasing strategies 85 / 100 In case of periodic review for B class item, which inventory policy should be followed? Periodic Review and Maximum order level Periodic Review, Order point and Maximum order level Order Point and Order Quantity Order point and Maximum order level 86 / 100 What is a 'break' clause? A clause that delays the start of a contract A clause that enables a contract to be terminated early on a no-fault basis A clause that enables an agreement to be terminated for breach of contract A means of changing the agreed prices 87 / 100 To Control of C Items Having Steady Demand Which of the following should be followed? First come first out system The classification inventory reviewed periodically grouping in smallest unit of consumption All of the above 88 / 100 Reorder quantity and re-order timing are both important factors to control which of the following? Cost per unit Shipment cost How many items fit on a pallet Inventory levels 89 / 100 In Bayax film products Raw material market, there are few suppliers available in market, what kind of supplier are they? Routine suppliers Leverage suppliers Bottleneck suppliers critical suppliers 90 / 100 ABC Limited is looking at appointment of Chief Procurement Officer. The company has listed down the key responsibilities the CPO is expected to carry. Identify the responsibilities that are least likely to be part of the role of the CPO. Achieving financial objectives through cost reduction Re-engineer the business process Satisfy the needs of delivery time Guarantee low cost purchase at all times 91 / 100 Collaborative Planning, Forecasting and Replenishment is joint development of services by several partners Planning with trading partners plan key supply chain activities Internal planning of inbound and outbound logistics Automated, analytics-driven optimized planning 92 / 100 Which of the following is useful for sales forecast? Distribution center withdrawals Transit lead times shipment quantities Current inventory positions 93 / 100 When demand is declining, but probabilistic in nature, Which is best among following? Setting Reorder Level Keeping Enough Safety stock Use of a desired service level No Need to keep any stock 94 / 100 Philips is expanding their personal electronics product lines. Which forecasting method they should choose? Moving Average Forecasting Regression analysis Econometric Modeling Life-Cycle Modeling 95 / 100 Which of the following KPI tracks inventory accuracy? Inventory Days Of Supply Cash to Cash cycle time Stock Outs Warehouse Space Utilization 96 / 100 Which type of inventory is if inventory is recorded whenever received cycle Inventory Safety inventory Perpetual inventory In Transit Inventory 97 / 100 Which Data is needed for MRP? Material to be ordered Distribution Plan Finished Goods Storage Lead time of Materials 98 / 100 Mr. Sam is confused about determining which inventory is slow moving. Which of the following can followed? Highest Inventory Stock Inventory Lowest Record Inventory turnover Demand Forecast 99 / 100 Which of these does not apply to spot-purchases? Used for low-value purchases Risks increasing maverick spend Requires detailed planning and market investigation Used for urgent requirements 100 / 100 Promotions such as "buy one get one free" are somewhat risky in terms of forecasting. Why? Increases likelihood of competition. Could decrease future sales. Decreases perceived value of regular-price items. Gives the impression of a struggling company.
