SCProTM Level One Certification

Exam Study Guide

Table of Contents
SCPro Level One: Cornerstones of Supply Chain Management ............................................................... 3
Exam Overview ......................................................................................................................................... 4
Sample Exam Questions............................................................................................................................ 5
Learning Block 1: Supply Chain Concepts Description and Learning Objectives ...................................... 8
Learning Block 2: Demand Planning Description and Learning Objectives .............................................. 9
Learning Block 3: Procurement and Supply Management Description and Learning Objectives .......... 11
Learning Block 4: Manufacturing and Service Operations Description and Learning Objectives .......... 12
Learning Block 5: Transportation Description and Learning Objectives ................................................. 13
Learning Block 6: Inventory Management Description and Learning Objectives................................... 14
Learning Block 7: Warehouse Management Description and Learning Objectives................................ 15
Learning Block 8: Order Fulfillment and Customer Relationships Description and Learning Objectives
................................................................................................................................................................ 16
Practice Exam .......................................................................................................................................... 17
Practice Exam Answer Key ...................................................................................................................... 30
Help at a Glance ...................................................................................................................................... 30

SCProTM Level One Certification

Exam Study Guide

SCPro Level One: Cornerstones of Supply Chain Management

Congratulations on your decision to pursue the SCPro Level One CSCMP

Certification. This Study Guide is being provided to help you prepare for your
certification exam. In this document, you will find:

Exam Overview
Learning Block Descriptions and Learning Objectives
Practice Exam
Help at a Glance

SCProTM Level One Certification

Exam Study Guide

Exam Overview
The exam is a closed-book, four-hour (240 minutes)
timed exam in a computer-based format. The exam
consists of 184 multiple-choice test questions that
have four options for answers and only one best
answer. Of the 184 questions, 160 will be scored and
24 will not be scored. These 24 pretest questions are
randomly presented throughout the exam and are
comparable to scored questions. Candidates should
attempt to answer all 184 questions.
You will be tested on the following content areas called Learning Blocks:
1.
2.
3.
4.
5.
6.
7.
8.

Supply Chain Concepts

Demand Planning
Procurement and Supply Management
Manufacturing and Service Operations
Transportation
Inventory Management
Warehousing
Order Fulfillment and Customer Relationships

In each content area (Learning Block), there will be questions on the following topics:
1.
2.
3.
4.
5.
6.

Concepts
Processes
Strategies
Technology
Global
Assessment

Additional information regarding the testing policies and procedures can be found in the Level
One Guidelines.

Plan Ahead for Your SCPro Certification Exam

TM

CSCMP encourages you to develop a plan to prepare for your exam. Based on the
comprehensive content in the eight Learning Blocks, and feedback from our certification
participants, we recommend that you allow between six and eight weeks of preparation time
before you take your scheduled test.

SCProTM Level One Certification

Exam Study Guide

Sample Exam Questions

Cognitive Level of Test Questions

For the CSCMP certification test, all of the questions are in the form of multiple-choice with four answer
options. Only one of the four answer options is correct for each question. For each of the eight Learning
Blocks within the CSCMP certification test, the questions are written at three different cognitive levels:
Level One Knowledge, Level Two Application, and Level Three Synthesis.
Following is a general description and example test question for each cognitive level. (A 40-question
practice exam is included in this Study Guide beginning on page 17)

Cognitive Level One - Knowledge

Test questions at Cognitive Level One Knowledge requires examinees to recognize and recall specific
facts or information in order to answer the test question correctly.
Example Test Question:
How are the effects of an 85% learning rate best described?
A. As production doubles, the direct labor required to produce a unit should decrease an
average of 15%.
B. As production doubles, the direct labor required to produce a unit should decrease an
average of 85%.
C. As purchase quantities double, the purchase price should decrease an average of 15%.
D. As purchase quantities double, the purchase price should decrease an average of 85%.

Correct Answer: A

SCProTM Level One Certification

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Cognitive Level Two - Application

Test questions written at Cognitive Level Two Application require examinees to analyze information,
identify which elements are relevant, and determine an approach or solution.
Example Test Question:
An exporter ships sunglasses with a retail value of $150.00 per unit from Singapore to the United
States. The sunglasses are shipped 24 units per case, and there are 50 cases per delivery. The case
dimensions are 18 inches x 12 inches x 18 inches.
What international intermodal transportation is most appropriate for this shipment?
A.
B.
C.
D.

Air and railroad

Air and truck
Water and railroad
Water and truck

Correct Answer: B

SCProTM Level One Certification

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Cognitive Level Three - Synthesis

Test questions written at Cognitive Level Three Synthesis require examinees to synthesize knowledge
and information, to judge the value of the knowledge and information, and to form a new approach or
solution.
Example Test Question:
A small manufacturer makes specialty medical care products in a single factory. It ships directly from
the factory to end consumers utilizing a common carrier. Last year, production costs were $500,000
and transportation costs were $250,000.
If the manufacturer changes its business model to hold products in regional warehouses, production
costs would decrease by 15%, common carrier costs would decrease by 60%, adding shipments from
the factory to regional warehouses would cost $50,000, and the regional warehouse facilities would
cost $75,000 on an annual basis.
If total costs are the only factor in the decision, which business model should the manufacturer
utilize and why?
A. The existing factory to end consumers model because the factory to regional warehouses
model would increase total costs by $100,000 annually
B. The existing factory to end consumers model because the factory to regional warehouses
model would increase total costs by $175,000 annually
C. The new factory to regional warehouses model because it would decrease total costs by
$100,000 annually
D. The new factory to regional warehouses model because it would decrease total costs by
$175,000 annually
Correct Answer: C

SCProTM Level One Certification

Exam Study Guide

Learning Block 1: Supply Chain Concepts

Description and Learning Objectives
Abstract
Interest in supply chain management, both in the private and public sectors, has grown rapidly over the
last two decades. Leading organizations now recognize the positive outcomes enhanced competitive
strategy, increased market share, and greater shareholder value that can be achieved through
effective supply chain management.
These organizations are taking steps to achieve a competitive
advantage through supply chain management, and they need skilled
individuals who can design, execute, and manage their supply chains.
For these individuals, skill development begins with having a solid
foundation of knowledge in supply chain management concepts and
principles.

Description
The goal of this learning block is to assess certification candidates
knowledge of the essential components of a supply chain and the
fundamental concepts and principles of supply chain management.
The content provides insight into the key roles that supply chain
management plays in improving customer service, reducing operating costs, and improving financial
performance for organizations small or large, national or global. In addition, supply chain management
processes, strategies, tools, and technologies are introduced.

Learning Objectives
After completing the content in this learning block, certification candidates should be able to:
1. Describe the basic concepts of supply chain management and its essential role in an
organization
2. Identify the key elements and processes of a supply chain and how they interact
3. Identify principles and strategies for establishing efficient, effective, and sustainable supply
chains
4. Explain the critical roles of technology in supply chain planning, visibility, and execution
5. Define the requirements and challenges of moving products across global supply chains
6. Discuss how to assess the performance of supply chains using standard metrics and frameworks

SCProTM Level One Certification

Exam Study Guide

Learning Block 2: Demand Planning

Description and Learning Objectives
Abstract
This learning block focuses on sales and operations planning, demand planning, and demand
forecasting.
Sales and operations planning (S&OP) is a decision-making process to balance supply and demand by
integrating demand and sales forecasts with operational plans
from suppliers, production, and logistics. The goal of the S&OP
process is to integrate demand forecasts with capacity forecasts
so that the supply chain operations are integrated with the
marketing and sales functions.
Demand planning is a key step in the sales and operations
planning process. The demand plan specifies what should be sold
and when given the organizations supply capabilities and
constraints. The goal of demand planning is to estimate orders for
products and services over some future time period using
information such as historical sales data, information about
planned promotions, and market intelligence.
Demand forecasting is a key step in the demand planning process. The goal of demand forecasting is to
accurately estimate future, expected orders. Accurately estimating demand is difficult, and there are a
variety of forecasting methods that can be used. These methods are typically either a qualitative or a
quantitative approach. However, some organizations use a combination of the two approaches.

Description
The goal of this learning block is to assess candidates knowledge of the essential S&OP, demand
planning, and demand forecasting processes in the supply chain.

For S&OP, the content focuses on the critical inputs to the S&OP process, including the demand
plan and the capacity plan, which is a projection of future supply capabilities. The S&OP process
produces three critical plans the operational plan, the demand plan, and the financial plan.
The demand and capacity plans are reconciled through the financial plan that evaluates
resource costs against performance projections.
For demand planning, the content focuses on the systems, models, and approaches

SCProTM Level One Certification

Exam Study Guide

organizations use to better understand the demand for their products and services, and how
they use this information to integrate supply and production to satisfy the expected level of
demand.
For demand forecasting, the content focuses on the different approaches to demand forecasting
and the role of the demand forecast in managing the supply chain.

Learning Objectives
After completing the content in this learning block, certification candidates should be able to:
1. Describe the basic concepts of S&OP, demand planning, and demand forecasting and their
essential roles in an organization
2. Identify the key elements and processes in S&OP, demand planning, and demand forecasting
and how they interact
3. Identify principles and strategies for establishing efficient and effective S&OP, demand planning,
and demand forecasting
4. Explain the critical role of technology in managing S&OP, demand planning, and demand
forecasting processes
5. Define the requirements and challenges of operating S&OP, demand planning, and demand
forecasting processes on a global basis
6. Discuss how to assess the performance of S&OP, demand planning, and demand forecasting
processes using standard metrics and frameworks

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Learning Block 3: Procurement and Supply Management

Description and Learning Objectives
Abstract
Strong relationships with trading partners can be developed through successful supplier relationship
management programs and supply management processes that integrate the procurement function
with other internal functions and external supply chain partners. These relationships can be the key to
increasing the efficiency and effectiveness of several supply chain business processes.
The purchase of materials, work-in-process, finished goods, and services by the procurement function is
a critical business process within all supply chain operations. The procurement processes can provide
organizations with a sustainable competitive advantage
through lower costs, higher quality, and better service for
both internal and external customers.

Description
The goal of this learning block is to assess certification
candidates knowledge of the management of supply
processes and operations in the supply chain. The content
focuses on the importance and leadership role of
procurement within organizations, the basic steps and key
success factors in the evaluation, selection and
maintenance of supplier relationships, and the need for the
procurement function to integrate with internal business
functions and external supply chain partners in sourcing materials and services.

Learning Objectives
After completing the content in this learning block, certification candidates should be able to:
1. Describe the basic concepts of supply management and its essential role in supply chain
operations
2. Identify the key elements and processes in managing supply operations and how they interact
3. Identify principles and strategies for establishing efficient, effective, and sustainable supply
management operations
4. Explain the critical role of technology in managing supply operations and material flows
5. Define the requirements and challenges of sourcing materials and services on a global basis
6. Discuss how to assess the performance of supply management operations using standard
metrics and frameworks

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Learning Block 4: Manufacturing and Service Operations

Description and Learning Objectives
Abstract
To be successful in manufacturing and service operations, managers should possess both technical and
behavioral skills. They should apply these skills to achieve improved transformational processes and
outputs in operations management contexts throughout the supply chain. This includes manufacturing,
warehousing, and all related business service processes, such as inventory management and customer
service.

Description
The goal of this learning block is to assess candidates knowledge of the essential
management of manufacturing and service operations in the supply chain. The
content focuses on planning, organizing, controlling, directing, motivating and
coordinating all the activities that are used to produce goods and services.
Manufacturing and service operations decisions include:

Long-term strategic decisions on issues such as facility location, capacity

determination, and service delivery network
Mid-term tactical decisions on issues such as determination of inventory
levels and service-level labor requirements
Short-term operational decisions about issues such as operational scheduling and job
assignments

Learning Objectives
After completing the content in this learning block, certification candidates should be able to:
1. Describe the basic concepts of manufacturing and service operations and its essential role in
meeting customer expectations
2. Identify the key elements and processes in manufacturing and service operations and how they
interact
3. Identify principles and strategies for establishing efficient, effective, and sustainable
manufacturing and service operations
4. Explain the critical role of technology in managing manufacturing and service operations
5. Define the requirements and challenges of manufacturing and service operations on a global
basis
6. Discuss how to assess the performance of manufacturing and service operations using standard
metrics and frameworks

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Exam Study Guide

Learning Block 5: Transportation

Description and Learning Objectives
Abstract
Transportation involves the physical movement of people and goods between origin and destination
points. From a business standpoint, transportation links geographically separated partners and facilities
in an organizations supply chain customers, suppliers, channel members, plants, warehouses, and
retail outlets. Whether by truck, train, plane, ship, pipeline, or fiber optic wire, transportation facilitates
the creation of time and place utility in the supply chain.

Description
The goal of this learning block is to assess certification
candidates knowledge of the management of
transportation processes and operations in the supply
chain. The content focuses on the key principles,
strategies, and decisions required for the cost-efficient,
effective flow of goods between sellers and buyers.
Transportation is a high cost, high impact supply chain
activity. The proper management of transportation
processes and issues is critical to the fulfillment of
customer demand and the ultimate success of a supply
chain.

Learning Objectives
After completing the content in this learning block, certification candidates should be able to:
1. Describe the basic concepts of transportation management and its essential role in demand
fulfillment
2. Identify the key elements and processes in managing transportation operations and how they
interact
3. Identify principles and strategies for establishing efficient, effective, and sustainable
transportation operations
4. Explain the critical role of technology in managing transportation operations and product flows
5. Define the requirements and challenges of planning and moving goods between countries
6. Discuss how to assess the performance of transportation operations using standard metrics and
frameworks

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Learning Block 6: Inventory Management

Description and Learning Objectives
Abstract
Inventory management is focused on determining how much inventory to carry across the supply chain,
where to carry it, and how much safety stock is required to meet the organizations cost and customer
service objectives. The management of inventories will depend upon the value of the product, the cost
to carry the product in inventory, the variability of demand and lead time, the cost of stocking out of the
product, the number of locations where inventory is held, and the importance of the product to
customers.

Description
The goal of this learning block is to assess candidates knowledge of the
essential management of inventory in the supply chain. The content
focuses on the different approaches to managing supply chain
inventories and the variables that drive the level of inventories to be
held. This includes the fundamental need for inventory, how the
products value affects inventory decisions, the various approaches for
determining inventory levels, how the number of inventory locations
affects the level of inventory, and new approaches to reducing
inventory including postponement, vendor-managed inventories, crossdocking, and quick response systems. The trade-offs between inventory
and transportation costs are a critical element in managing inventory
effectively, including understanding how carrying costs can affect
inventory decisions.

Learning Objectives
After completing the content in this learning block, certification candidates should be able to:
1. Describe the basic concepts of inventory management and its essential role in meeting
customer demand
2. Identify the key elements and processes in inventory management and how they interact
3. Identify principles and strategies for establishing efficient and effective flows of inventory across
the supply chain
4. Explain the critical role of technology in planning and managing inventory
5. Define the requirements and challenges of inventory management on a global basis
6. Discuss how to assess the performance of inventory management using standard metrics and
frameworks

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Learning Block 7: Warehouse Management

Description and Learning Objectives
Abstract
Warehousing is a critical logistics function that manages the storage and handling of materials, work-inprocess, and finished goods within supply chains. The warehousing function provides economic benefits,
such as transaction efficiencies and the consolidation and breaking bulk of inventories. It also plays a
critical role in meeting customer requirements for the timely delivery of goods and services. This is
accomplished through value-added services and fulfillment processes, while at the same time efficiently
managing inventory costs.

Description
This goal of this learning block is to assess certification candidates
knowledge of the management of warehouse processes and
operations in the supply chain. The content focuses on the different
types of warehousing options, basic warehousing storage and
handling operations, strategic planning issues, and the effects of
warehousing design and service decisions on total logistics costs and
customer service. Proper management of these distribution
activities is vital to the fulfillment of customer demand and the
ultimate success of a supply chain.

Learning Objectives
After completing the content in this learning block, certification candidates should be able to:
1. Describe the basic concepts of warehousing management and its essential role in demand
fulfillment
2. Identify the key elements and processes in managing warehousing operations and how they
interact
3. Identify principles and strategies for planning and managing warehouse operations
4. Identify principles and strategies for designing materials handling operations within a
warehousing facility
5. Explain the critical role of technology in managing warehouse operations and product flows
6. Discuss how to assess the performance of warehousing operations using standard metrics and
frameworks

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Learning Block 8: Order Fulfillment and Customer Relationships

Description and Learning Objectives
Abstract
Order fulfillment is the complete process from point-of-sale inquiry to delivery of a product to the
customer to returns processing. In the broadest terms, it refers to the way organizations respond to
customer orders. Order fulfillment is a crucial process since it is the last link in the supply chain. It may
be the only direct contact some organizations have with their end customers, and it can make or break
an organizations reputation with its customers.
Customer service is a series of activities designed to enhance
the level of customer satisfaction. Satisfaction is based on the
feeling that a product or service has met or exceeded the
customers expectations before, during, and after a purchase.

Description
The goal of this learning block is to assess candidates
knowledge of the essential management of order fulfillment and
customer service processes in customer relationship
management. The content focuses on planning, organizing,
controlling, and coordinating the order fulfillment and customer
service operations activities from the initial customer inquiry all
the way through post sales service.

Learning Objectives
After completing the content in this learning block, certification candidates should be able to:
1. Describe the basic concepts of order fulfillment and customer service and their essential roles in
customer relationship management
2. Identify the key elements and processes in order fulfillment and customer service and how they
interact
3. Identify principles and strategies for establishing efficient, effective, and sustainable order
fulfillment and customer service operations
4. Explain the critical role of technology in order fulfillment and customer relationship
management
5. Discuss how to assess the performance of order fulfillment and customer service operations
using standard metrics and frameworks

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Exam Study Guide

Practice Exam
Following is a 40-question practice exam. Taking this exam
provides an opportunity to familiarize yourself with the structure
of the exam and the types of questions that may be used. Results
of the practice exam do not indicate exam results, and should be
used only for practice purposes.
The practice exam answer key can be found on page 30.

1. What is a common root cause of the bullwhip effect?

A.
B.
C.
D.

Accurate demand forecasts but inaccurate supply forecasts

Lack of downstream demand information
Minimal levels of participants involved in the supply chain
Sales promotions that have been clearly communicated

2. While many warehouses and distribution centers currently operate with fewer order selection
employees than in the past, those employees typically cannot be totally eliminated. In which
type of situation is this statement most often true?
A.
B.
C.
D.

When customers order products in pallet-sized loads

When the number of product returns from customers is high
When the number of small-quantity orders received daily is high
When the variety of stock keeping units in an average order is relatively low

3. Which three manufacturing drivers are projected to be the most important in the 21st century?
A.
B.
C.
D.

Fuel prices, government regulations, and wage rates

Government regulations, security, and taxation
Market demographics, supply chain challenges, and taxation
Natural disasters, security, and supply chain challenges

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4. What is the primary reason to source goods and services globally?

A.
B.
C.
D.

Copy the buying patterns of key competitors who are sourcing globally
Establish a marketing presence in a foreign market
Gain access to emerging product and process technologies
Obtain prices that are lower than local market prices

5. Which type of cost is specific to global sourcing versus domestic sourcing?

A.
B.
C.
D.

Port terminal and handling fees

Purchase price
Tooling cost
Transportation costs from supplier

6. A building materials retailer is considering cross-docking four products in its distribution center.
Based on the demand and store and annual inventory turnover data provided, which product is
the most likely choice for cross-docking?

Product

Weekly
Demand (units)

# of Stores
Stocking

Inventory
Turnover

Flower pot

500 - 600

3x

Hammer

250 - 300

10

5x

Paint (cans)

1,300 - 1,500

10

7x

Screwdriver

300 - 1,500

15x

A.
B.
C.
D.

Flower pot
Hammer
Paint
Screwdriver

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7. A category sourcing team has developed a scorecard system for evaluating the overall
performance of four suppliers (Supplier A, B, C, and D). The scorecard weights are out of 100
total points. The supplier performance rating uses a five-point scale (1 for worst to 5 for best).
Based on the scorecard weightings and the actual performance ratings provided, which supplier
has the best overall performance?
Supplier
Criteria

Weight

Quality systems

30

Financial condition

25

Cost structure

20

Delivery performance

15

Environmental capability

10

100

A.
B.
C.
D.

Supplier A
Supplier B
Supplier C
Supplier D

8. What term best describes an effort to coordinate inventory deployment across an entire
organization?
A.
B.
C.
D.

Advanced planning and scheduling

Enterprise resource planning
Sales and operations planning
Warehousing

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9. Based on a survey of its current and past customers, an e-retailer determined that stockouts of a
specific video game system was an expensive problem. For the stockouts, 60% resulted in
backorders, 25% resulted in lost sales, and 15% resulted in lost customers. The total
transportation and handling costs for each backorder averaged $50.00.
An average customer spends around $10,000 with the e-retailer over his or her purchasing
lifetime, while an average sale is $160.
How much should the e-retailer invest in periodic inventory for the video game system in order
to avoid future stockouts?
A.
B.
C.
D.

$1,570
$1,650
$10,000
$10,210

10. Based on the order data provided, what is the item fill rate?
Category
Orders received

Total
5,000

Units ordered

40,000

Lines ordered

12,000

Units delivered

37,800

Lines delivered complete

11,200

Orders delivered complete

A.
B.
C.
D.

4,600

92.0%
93.3%
94.5%
97.5%

11. What is a key disadvantage of enterprise resource planning systems?

A.
B.
C.
D.

Benefits primarily multi-national organizations

Integrates production and capacity only
Lacks flexibility
Replaces legacy software systems

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12. Within the sales and operations planning process, what is one of the primary factors that can be
adjusted to better align demand with existing supply?
A.
B.
C.
D.

Inventory
Marketing
Production capacity
Transportation

13. Which two modes of transportation are least affected by rising fuel prices?
A.
B.
C.
D.

Air and truck

Air and water
Pipeline and railroad
Pipeline and truck

14. An industrial electronics company implemented a sales and operations planning system with a
supply collaborator software application. When the company interacts with the outsource
partners who perform contract manufacturing, what functionality does the supply collaborator
provide?
A. Ability to conduct what-if scenario analysis in real time and make last-minute
adjustments
B. Greater understanding of the manufacturing capabilities and output quality for each
contract manufacturer
C. Measurement of balanced scorecard key performance indicators
D. Visibility to each contract manufacturer's metrics, such as plant utilization and
production capacity

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15. A long-distance moving company is not achieving key performance targets for its transportation
operations. The factors driving the poor performance are 1) routing guide compliance is
inconsistent, 2) optimal load tendering is less than 50%, 3) ability to track in-transit loads is
limited, and 4) appointment scheduling is a manual process.
Which type of tools in a transportation management system would help the moving company
address the four factors?
A.
B.
C.
D.

Analytical tools
Event management tools
Execution tools
Planning tools

16. The supply chain for a domestic fresh fruit grower has specific requirements. The length of time
and temperature during transit must be monitored and controlled, and there must be visibility
across the supply chain.
In addition to the fruit grower and the domestic retailers, which other groups have a vested
interest in the success and safety of this supply chain?
A.
B.
C.
D.

Competitors and consumers

Competitors and storage facilities
Consumers and government regulators
Storage facilities and water carriers

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17. Four cross-dock facilities utilize different resources to unload inbound and load outbound
shipments. Based on the data provided for each distribution center, which one is most likely to
have the highest hourly throughput?

Distribution
Center

Average Unload/
Load Time
(minutes per order)

Number of
Dock
Employees

Forklift
or
Manual

Pallets

14:33

Manual

Yes

17:00

Forklift

No

19:26

Manual

No

16:21

Forklift

Yes

A.
B.
C.
D.

Distribution Center A
Distribution Center B
Distribution Center C
Distribution Center D

18. As the total number of warehouses in a distribution network increases, at what rate does the
inventory carrying costs increase in comparison?
A.
B.
C.
D.

Decreasing
Exponential
Increasing
Linear

19. In general, what areas do governmental agencies most often regulate in the transportation
industry?
A.
B.
C.
D.

Economic and safety regulation

Environmental and safety regulation
Environmental and service quality regulation
Safety and service quality regulation

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20. What term is best described as the process of combining purchasing requirements across
operating units in order to capitalize on suppliers' fixed cost allocations and improvements in
suppliers' productivity?
A.
B.
C.
D.

Leveraging
Specifying
Spot buying
Strategizing

21. What is a distinguishing characteristic of organizations that have fully adopted a customer
relationship management philosophy?
A.
B.
C.
D.

Call centers are running and available 24/7 to accept customer calls
Sales representatives frequently call on key customers and potential new customers
Software is used to track and monitor customers' changing preferences
The business culture reflects an attitude that the customers' wishes have priority

22. If a product has only 12 periods of sales history, why would mean absolute percent error (MAPE)
be used as a measure of forecast accuracy, rather than mean absolute?
A. MAPE calculations do not require time-series forecasting, which is required for MAD
B. MAPE calculations have less data collection requirements than MAD
C. MAPE results are less likely to have calculation errors, which frequently occur in MAD
results
D. MAPE results are typically viewed as more easy to interpret than MAD results
23. Which logistics technology is most concerned with data capture?
A.
B.
C.
D.

Barcoding
Electronic data interchange
Internet linkages
Radio frequency transmission

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24. Which factor will typically have the largest effect on an economic order quantity formulation
relative to its incremental change in value?
A.
B.
C.
D.

Order costs
Order cycle
Transportation costs
Unit costs

25. What term best describes a costing methodology that is frequently used to develop estimates of
customer profitability?
A.
B.
C.
D.

Absorption-based costing
Activity-based costing
Allocation-based costing
Area-based costing

26. How can an organization best assess whether it has reached its end-users in an effective and
efficient manner?
A.
B.
C.
D.

Adopt channel-spanning performance measures

Establish a pay-for- performance reward system
Implement functional performance scorecards
Optimize internal financial metrics

27. Which type of order picking practice most often leads to less idle time for employees and
equipment?
A.
B.
C.
D.

Clearly identifying all pick locations with labels

Maintaining adequate inventory levels in pick slots
Storing similar inventory items close together
Utilizing conveyors to move items between the pick and ship areas

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Exam Study Guide

28. What term best describes the phenomena that as production volumes increase with additions of
capacity, the unit cost to produce a product decreases to an optimal level?
A.
B.
C.
D.

Diseconomies of scale
Economies of scale
Learning curve
Utility curve

29. An office products company is trying to optimize the balance of supply and demand over the
coming six-month period. Which element of the sales and operations plan would best guide the
efforts of its production and procurement functions during this optimization process?
A.
B.
C.
D.

Capacity plan
Demand plan
Operational plan
Sales plan

30. A national baked goods company implemented sales and operations planning as a means to
increase its financial performance. How would it best demonstrate an effective?
A.
B.
C.
D.

Decrease the price of perishable items in order to drive sales before items go stale
Employ a seasonal workforce to make products during holiday seasons
Increase inventories of eggs and milk when the demand for wedding cakes will increase
Use the same types of flour and sugar in all of its pastry products

31. Four executives from different industries have a different set of strategies for supply chain
collaboration. Based on their strategies, which one of the four executives would most likely
build the strongest collaborative relationships across the supply chain?
A. Executive A whose strategies include limit information access, use gain sharing, and
optimize per unit purchase prices
B. Executive B whose strategies include share all available information, use punitive
contracts, and optimize product landed cost
C. Executive C whose strategies include trust partners with relevant data, build flexible
contracts, and optimize total cost of ownership
D. Executive D whose strategies include share historical data, contract with multiple
suppliers, and optimize inbound delivery costs

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Exam Study Guide

32. In the three V's (volume, value, velocity) model of inventory management, which key
performance metric would best measure the velocity objective?
A.
B.
C.
D.

Material throughput rates

Period-by-period unit value changes
Total dollars
Total units

33. How can transportation managers best contribute strategically to their organizations supply
chain capabilities?
A.
B.
C.
D.

Adopt higher performance standards for transportation services

Align the goals of the transportation function with the goals of primary customers
Purchase transportation services based on lowest possible transactional cost
Simultaneously meet elevated service requirements and achieve lower costs

34. Which type of tools in transportation management systems go beyond the basic capabilities of
route optimization and carrier connectivity to also provide benchmarking and post-shipment
performance evaluation capabilities?
A.
B.
C.
D.

Analytical tools
Event management tools
Execution tools
Planning tools

35. What is a primary challenge that frequently occurs when adopting a centralization strategy for a
global supply chain?
A.
B.
C.
D.

Economies of scale can be difficult to achieve across the supply chain

Misalignment of information technology is likely to occur
Monitoring of partner performance can be difficult to coordinate
Standardized practices may not fit particular markets or regions

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SCProTM Level One Certification

Exam Study Guide

36. A multi-national conglomerate has operations and pays government taxes in four countries:
Korea, Mexico, Poland, and United States. Based on the pre-tax profits and tax rates provided, in
which country will it have the highest after tax profit?

Country

Pre-Tax
Profit

Tax
Rate

Korea

$15,000

27.5%

Mexico

$12,000

28.0%

Poland

$14,000

19.0%

United States

$17,000

35.0%

A.
B.
C.
D.

Korea
Mexico
Poland
United States

37. Which type of software provides oversight during the last phase of the sourcing process?
A.
B.
C.
D.

Contract management software

Negotiation software
Price forecasting software
Total cost reporting software

38. What is the most commonly cited reason when the staffing and employment costs for a
warehouse are higher than they should be?
A. Demand variations cause worker scheduling problems, which results in paying for too
much overtime or idle time
B. Many warehouse facilities run three daily shifts, and night shift workers are often
inefficient due to getting less sleep
C. Qualified warehouse workers can get higher-paying jobs outside the distribution
industry, which drives up salaries
D. Total personnel costs, which includes salary, insurance, benefits and vacations, are
relatively high in the distribution industry

39. When a supply chain information system is correctly configured, what primary capability does it
provide?

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SCProTM Level One Certification

Exam Study Guide

A.
B.
C.
D.

Ability to achieve error-free outsourcing and lean manufacturing

Ability to develop supply chain strategies in isolation
Ability to eliminate demand variation and delivery errors
Ability to manage risk and pursue global optimization

40. What term is best described as the matrix that categorizes processes into structures based on
output volume and variety?
A.
B.
C.
D.

Operations-process matrix
Product-process matrix
Quality-process matrix
Service-process matrix

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Exam Study Guide

Practice Exam Answer Key

Practice Exam Answer Key

Question Answer

Question

Answer

21

22

23

24

25

26

27

28

29

10

30

11

31

12

32

13

33

14

34

15

35

16

36

17

37

18

38

19

39

20

40

Help at a Glance
To learn more about SCPro, or find answers to FAQs, visit cscmpcertification.org. Or, you can e-mail
scpro@cscmp.org or call +1 630.574.0985.

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