CSCP Supply Chain Planning and Execution 2 — Questions and Answers
Question 1: What is the key difference between 'push' and 'pull' supply chain execution?
- Push produces based on forecasts; pull produces in response to actual customer demand signals (Correct answer)
- Push is faster; pull is slower
- Push uses lean principles; pull uses agile principles
- Push requires more safety stock; pull eliminates safety stock
Correct answer: Push produces based on forecasts; pull produces in response to actual customer demand signals
Push systems build inventory based on demand forecasts, while pull systems replenish only what has been consumed by actual demand.
Question 2: Which transportation mode typically offers the lowest cost per ton-mile for large, heavy shipments over long distances?
- Rail (Correct answer)
- Truck
- Air freight
- Parcel carrier
Correct answer: Rail
Rail transport offers the lowest cost per ton-mile for bulk and heavy freight over long distances due to high capacity and fuel efficiency.
Question 3: In warehouse management, 'cross-docking' refers to:
- Transferring inbound shipments directly to outbound vehicles with minimal or no storage time (Correct answer)
- Storing products in multiple warehouse locations
- Processing returns and sending them back to suppliers
- Sorting mixed pallets into single-SKU pallets for storage
Correct answer: Transferring inbound shipments directly to outbound vehicles with minimal or no storage time
Cross-docking moves products from receiving directly to shipping, bypassing traditional storage and reducing handling and holding costs.
Question 4: What is the purpose of a 'Warehouse Management System' (WMS)?
- To automate and optimize warehouse operations including receiving, putaway, picking, and shipping (Correct answer)
- To manage supplier contracts and purchase orders
- To track fleet vehicles and driver hours
- To process customer invoices and payments
Correct answer: To automate and optimize warehouse operations including receiving, putaway, picking, and shipping
A WMS directs and records all warehouse activities to maximize efficiency, accuracy, and throughput within the facility.
Question 5: Which document serves as the primary contract between a shipper and a carrier for freight transportation?
- Bill of lading (Correct answer)
- Purchase order
- Commercial invoice
- Packing list
Correct answer: Bill of lading
A bill of lading is the legal contract of carriage, a receipt for goods, and a document of title for freight shipments.
Question 6: In distribution requirements planning (DRP), what information flows from distribution centers back to the manufacturing plant?
- Time-phased net requirements for finished goods that need to be replenished (Correct answer)
- Customer sales orders and invoices
- Warehouse capacity constraints and labor availability
- Transportation carrier performance metrics
Correct answer: Time-phased net requirements for finished goods that need to be replenished
DRP consolidates replenishment needs from all distribution points and passes those requirements upstream to the manufacturing plan.
