CSCP Free Practice Test

- (Topic 1)
A company’s decision to charge different prices for the same service sold in different market segments is most likely based on which of the following metrics?

1. A. Internal rate of return (IRR)
2. B. Lifetime customer value (LCV)
3. C. Net present value (NPV)
4. D. Return on investment (ROI)

Correct Answer: B

- (Topic 3)
The most appropriate approach to balance supply and demand over the medium term is:

1. A. Enterprise resource planning (ERP)
2. B. Business planning
3. C. Strategic planning
4. D. Sales and operations planning (S&OP)

Correct Answer: D

- (Topic 3)
Which of the following statements describes a continuous replenishment strategy in a retail environment?

1. A. Retailers make replenishment decisions.
2. B. Retailers prepare individual orders and share sales data with vendors to improve customer service.
3. C. Vendors use sales data and prepare shipments to maintain the desired level of inventory.
4. D. Vendors take full control of inventory policy.

Correct Answer: C

- (Topic 1)
Using an independent service provider for logistics would be most appropriate in which of the following situations?

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

Correct Answer: A

- (Topic 1)
When designing a supply chain for strategic advantage, a company first should consider:

1. A. the impact on customers using Just-in-Time manufacturing.
2. B. the financial stability of suppliers.
3. C. matching the supply chain to product type.
4. D. whether to use custom or standard parts.

Correct Answer: C