CSCP Practice Questions (2026) — Free Sample Questions with Answers

16 free CSCP questions from our 150-question bank, grouped by content domain. Each answer explains why the right option is right — and why every wrong option is wrong.

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Forecast and Manage Demand

Question 1

A garden-equipment maker is reconciling its third-quarter S&OP plan with the business plan (table below). Supply for powered tools is limited by motor-assembly capacity. Which action is most appropriate before the executive S&OP meeting?

Third-quarter S&OP reconciliation
FamilyDemand plan (units)Supply plan (units)Unit priceBusiness plan revenue
Hand tools10,00010,000$50$500,000
Powered tools6,0004,500$80$480,000
Show answer & explanation

Answer: B

Lower the powered-tools demand plan to 4,500 units: Not the best choice: it hides the gap; the demand plan should stay unconstrained so executives can see the lost revenue and decide.

Bring costed gap-closing options to executives: Correct. (ECM I.D.3) The constraint leaves a $120,000 revenue gap (1,500 units × $80). Reconciliation prepares alternatives, such as overtime, outsourcing or accepting the shortfall, with their cost and revenue effects for executive decision.

Raise hand-tool prices to make up the revenue: Not the best choice: a one-sided price change in another family does not address the constraint and has not been evaluated with sales.

Cut the business plan revenue target for the quarter: Not the best choice: changing the target before evaluating ways to close the gap skips the analysis that reconciliation exists to provide.

In S&OP reconciliation, planners convert volume plans to money, quantify gaps against the business plan, and bring options with trade-offs to the executive meeting.

Question 2

A planner reviews five months of forecasts for a line of cordless drills, shown below. Forecast error is defined as actual demand minus forecast. What is the tracking signal at the end of month 5?

Cordless drills: forecast vs. actual (units)
MonthForecastActual
1500545
2520510
3540580
4560600
5580615
Show answer & explanation

Answer: C

  1. 1. Errors (actual − forecast): +45, −10, +40, +40, +35 units.
  2. 2. Cumulative error = 45 − 10 + 40 + 40 + 35 = 150 units.
  3. 3. MAD = (45 + 10 + 40 + 40 + 35) ÷ 5 = 170 ÷ 5 = 34 units.
  4. 4. Tracking signal = 150 ÷ 34 = 4.41.

0.23: Not the best choice: inverts the ratio, dividing MAD (34) by the cumulative error (150).

0.88: Not the best choice: divides the average error (bias, 150 ÷ 5 = 30) by MAD; the tracking signal uses the cumulative error.

4.41: Correct. (ECM I.C.2) Tracking signal = cumulative forecast error ÷ MAD = 150 ÷ 34 = 4.41. The positive value shows forecasts are biased low (actual above forecast).

5.00: Not the best choice: uses the sum of absolute errors (170) as the numerator, which strips out the signs that reveal bias.

Tracking signal = running sum of forecast errors ÷ MAD; a value persistently far from zero signals bias (positive under the actual − forecast convention means forecasts are too low).

Question 3

A maker of portable space heaters charts three years of quarterly unit sales (shown below) before building next year's forecast. Which description of the demand pattern is best supported by the history?

Quarterly unit sales (thousands)050100150200250300350Y1 Q1Y1 Q2Y1 Q3Y1 Q4Y2 Q1Y2 Q2Y2 Q3Y2 Q4Y3 Q1Y3 Q2Y3 Q3Y3 Q4QuarterUnits (000s)
Show answer & explanation

Answer: A

Upward trend with a repeating seasonal peak: Correct. (ECM I.A.1) Each quarter is higher than the same quarter a year earlier (trend), and Q4 peaks and Q2 lows recur every year (seasonality), the two Dictionary demand-pattern components visible here.

Random variation around a stable average: Not the best choice: the same-quarter values rise each year and the peaks recur on schedule, so the variation is not random around a flat level.

Cyclical pattern with no underlying trend: Not the best choice: cyclical patterns follow multi-year business cycles; a peak that repeats every Q4 within the year is seasonality, and the level is rising.

Step change after a one-time event: Not the best choice: a step change is a single permanent shift in level; here growth is gradual and the quarterly shape repeats.

Read demand history for its components: level, trend (year-over-year direction), seasonality (repeats within the year), cycle (multi-year) and random variation.

Source Products and Services

Question 4

An importer buys laboratory analyzers that will travel by truck to a port, then by container ship and rail to its inland site. It wants the seller to arrange and pay for carriage to the inland site and to buy all-risks cargo insurance by default. Which Incoterms® 2020 rule best fits?

Show answer & explanation

Answer: A

CIP named inland site: Correct. (ECM III.C.2) CIP is for any mode, the seller pays carriage to the named place, and Incoterms® 2020 requires the seller to insure to Institute Cargo Clauses (A), all risks, unless agreed otherwise. Risk passes when the goods are handed to the first carrier.

CPT named inland site: Not the best choice: CPT covers carriage to the named place but puts no insurance obligation on the seller.

FOB named port of shipment: Not the best choice: FOB is a sea rule, unsuited to containerized multimodal moves, and the buyer arranges main carriage.

CIF named port of destination: Not the best choice: CIF is for sea and inland waterway only, stops at the port, and requires only minimum Clauses (C) cover.

Incoterms® 2020 delivery terms: for multimodal shipments, use the any-mode rules; CIP requires all-risks (Clauses A) cover, while CIF keeps the minimum Clauses C.

Question 5

A wind-turbine service firm buys a specialty gear lubricant that is less than 1% of its spend. The turbine maker's warranty approves only one formulation, made by one producer. Which sourcing strategy is most appropriate for this item?

Show answer & explanation

Answer: D

Competitive bidding to leverage purchase volume: Not the best choice: with one approved producer and little spend, there is no competition or volume to leverage.

Catalog buying with purchasing cards: Not the best choice: this fits non-critical items and ignores the high supply risk.

A strategic partnership with shared investment: Not the best choice: deep partnerships are for strategic items with high profit impact; this item's spend is too small to justify it.

Buffer stock and a long-term supply agreement: Correct. (ECM III.B.1) Low spend but high supply risk (a sole source: only one formulation from one producer is approved) makes this a bottleneck item, so the priority is continuity: hold buffer stock and secure the producer’s commitment with a long-term supply agreement.

A low-value item with only one possible source is a bottleneck item: secure supply with buffers and long-term agreements, and widen the approved base only if the specification ever allows it.

Question 6

A packaging plant is choosing between two filling machines with a five-year life. Using the costs below and ignoring the time value of money, which statement correctly compares the two machines' five-year total cost of ownership (TCO)?

Filling machine cost data
Cost elementLarkfieldPenrose
Purchase price$180,000$150,000
Installation (one time)$12,000$18,000
Maintenance per year$9,000$13,000
Energy per year$14,000$19,000
Salvage value at end of year 5$20,000$5,000
TCO = acquisition costs + operating costs over the life − salvage value.
Show answer & explanation

Answer: C

  1. Larkfield: $180,000 + $12,000 + 5 × ($9,000 + $14,000) − $20,000 = $192,000 + $115,000 − $20,000 = $287,000.
  2. Penrose: $150,000 + $18,000 + 5 × ($13,000 + $19,000) − $5,000 = $168,000 + $160,000 − $5,000 = $323,000.
  3. Difference = $323,000 − $287,000 = $36,000 in favor of Larkfield.

$0; the two machines are equal: Not the best choice: this counts only one year of maintenance and energy (both machines come to $195,000), not five.

$21,000 lower for Larkfield: Not the best choice: this leaves out salvage value ($307,000 vs $328,000), which is part of the life-cycle cost.

$36,000 lower for Larkfield: Correct. (ECM III.A.1) Larkfield TCO = $287,000 and Penrose TCO = $323,000, so Larkfield is $36,000 lower despite its higher price; TCO counts acquisition, use and disposal costs.

$30,000 lower for Penrose: Not the best choice: this compares purchase prices only, the price-based view that TCO is meant to replace.

TCO adds acquisition, operating and maintenance costs over the whole life and subtracts end-of-life value; the lowest price is often not the lowest TCO.

Manage Internal Operations and Inventory

Question 7

A sporting-goods wholesaler reports annual sales of $15.0 million and cost of goods sold of $10.5 million. Inventory at cost was $1.6 million at the start of the year and $2.0 million at the end. Using average inventory at cost, what is its gross margin return on inventory investment (GMROI)?

Show answer & explanation

Answer: C

  1. 1. Gross margin = $15.0M − $10.5M = $4.5M.
  2. 2. Average inventory at cost = ($1.6M + $2.0M) ÷ 2 = $1.8M.
  3. 3. GMROI = $4.5M ÷ $1.8M = 2.50.

0.30: Not the best choice: this is the gross margin percentage ($4.5M ÷ $15.0M); GMROI divides gross margin by the inventory investment, not by sales.

2.25: Not the best choice: uses year-end inventory ($2.0M) instead of the $1.8M average.

2.50: Correct. (ECM IV.C.4) GMROI = gross margin ÷ average inventory at cost = ($15.0M − $10.5M) ÷ $1.8M = $4.5M ÷ $1.8M = 2.50, so each inventory dollar earned $2.50 of gross margin in the year.

5.83: Not the best choice: this is inventory turnover (COGS ÷ average inventory = $10.5M ÷ $1.8M); it measures flow, not the margin earned on the investment.

GMROI = gross margin ÷ average inventory investment at cost; it ties inventory KPIs to profitability, unlike turnover, which measures flow alone.

Question 8

A beverage plant has met its monthly production plan in total units for six straight months, yet customer fill rates keep falling. A review finds some flavors overproduced and others short. Which measure would best expose this problem in future?

Show answer & explanation

Answer: A

Schedule attainment measured by item and period: Correct. (ECM IV.C.1) Comparing actual with planned output for each item in each period shows mix and timing misses that an aggregate total hides; overproducing some items cancels out shortfalls of others.

Labor efficiency of the bottling lines: Not the best choice: efficiency measures output per hour worked; a line can be efficient while making the wrong flavors.

Capacity utilization of the filling equipment: Not the best choice: utilization shows how busy the equipment is, not whether it made what the plan required.

Total units produced versus the aggregate plan: Not the best choice: this is the measure already being met; it ignores the scenario's key fact that the mix, not the volume, is wrong.

Measure plan performance at the level customers feel it: by item (mix) and period (timing), not only in aggregate volume.

Question 9

A maker of industrial pumps holds finished pumps in regional warehouses. It is considering stocking only common subassemblies at the plant and assembling pumps after orders arrive. Moving the order decoupling point upstream in this way will most likely:

Show answer & explanation

Answer: D

shorten customer lead times and raise finished-goods inventory.: Not the best choice: wrong direction; this is the effect of moving the decoupling point downstream, toward the customer.

remove the need for safety stock of subassemblies.: Not the best choice: subassemblies are still built to forecast, so they still need safety stock, although pooling them across pump models lowers the total.

make final assembly more dependent on the forecast.: Not the best choice: wrong direction; after the change final assembly is driven by actual orders, and only the subassemblies are built to forecast.

lengthen customer lead times and cut finished-goods inventory.: Correct. (ECM IV.B.1) The decoupling point is where inventory is placed to separate forecast-driven from order-driven activity. Moving it upstream means less finished-goods inventory and obsolescence risk, but the customer now waits for assembly and delivery.

Moving the decoupling point upstream trades longer customer lead time for less, more flexible inventory; moving it downstream does the reverse.

Manage Supply Chain Logistics

Question 10

A manufacturer in an inland city sells goods packed in containers to an overseas buyer. The buyer will contract and pay for the ocean carriage and wants the seller to handle export clearance. The seller wants its risk to end when the container is handed to the buyer’s nominated carrier at an inland container depot. Which Incoterms® 2020 rule best fits?

Show answer & explanation

Answer: A

FCA at the inland depot: Correct. (ECM V.C.2) Under FCA the seller clears the goods for export and delivers them to the buyer’s nominated carrier at the named place, where risk passes; the buyer contracts the main carriage. FCA suits containerized and multimodal shipments.

FOB at the port of shipment: Not the best choice: FOB is for sea and inland waterway transport and keeps the seller at risk until the goods are on board the vessel, after it has lost control of the container at the depot.

EXW at the seller’s factory: Not the best choice: under EXW the buyer handles export clearance and risk passes at the seller’s premises, against both of the seller’s stated terms.

CPT at the destination port: Not the best choice: under CPT the seller contracts and pays the main carriage, but here the buyer arranges the ocean freight.

For containerized cargo handed to a carrier before loading on the vessel, use FCA (or CPT/CIP if the seller pays carriage) rather than FOB/CFR/CIF.

Manage Customer and Supplier Relationships

Question 11

A snack manufacturer and a grocery chain use collaborative planning, forecasting, and replenishment (CPFR). For an upcoming promotion week, the retailer's sales forecast is 30% higher than the manufacturer's, which exceeds their agreed exception tolerance. What should the partners do next?

Show answer & explanation

Answer: C

Let each partner plan to its own forecast: Not the best choice: separate plans defeat the purpose of a single collaborative forecast.

Average the two forecasts and release orders: Not the best choice: splitting the difference skips the causal review that CPFR exception management requires.

Jointly review assumptions and agree one forecast: Correct. (ECM VI.B.1) In CPFR, forecast differences beyond the agreed tolerance are exceptions that the partners resolve together, sharing the promotion and history assumptions behind each number, before the shared forecast drives orders.

Use the retailer's forecast because it is nearer consumers: Not the best choice: closeness to demand does not make a forecast right; CPFR resolves the gap rather than defaulting to one party.

CPFR uses agreed exception criteria; when forecasts diverge beyond them, the partners resolve the cause together before replenishment.

Question 12

A medical-device distributor and a hospital group agree to track a perfect order index. Last quarter, 96% of orders arrived on time, 98% were complete, 99% were damage-free and 97% had accurate documentation. Failures on the four components occurred independently. What was the perfect order index?

Show answer & explanation

Answer: B

  1. 1. Perfect order index = on-time rate × complete rate × damage-free rate × documentation-accuracy rate.
  2. 2. = 0.96 × 0.98 × 0.99 × 0.97
  3. 3. = 0.9408 × 0.9603 = 0.9035
  4. 4. Perfect order index ≈ 90.3% of orders.

90.0%: Not the best choice: subtracting the four failure rates from 100% (100 − 4 − 2 − 1 − 3) assumes no order ever fails on more than one component; with independent failures the rates multiply.

90.3%: Correct. (ECM VI.A.1) With independent components, the share of orders perfect on all four is the product 0.96 × 0.98 × 0.99 × 0.97 ≈ 0.903, the SCOR perfect order fulfillment concept applied to this customer.

96.0%: Not the best choice: this is only the lowest component (on-time) rate, not the share of orders perfect on all four components.

97.5%: Not the best choice: averaging the four rates overstates performance; an order is perfect only if it passes every component.

An order is perfect only when every component is met, so independent component rates are multiplied, never averaged.

Manage Supply Chain Risk

Question 13

A food importer is reviewing its risk responses for port disruption. Which of the following is an example of contingency planning?

Show answer & explanation

Answer: A

A pre-agreed alternate port used after a 72-hour closure: Correct. (ECM VII.C.1) A contingency plan sets in advance the trigger (a closure over 72 hours) and the actions and resources to use, so impact is minimized once the event happens.

A force majeure clause in supplier contracts: Not the best choice: the clause allocates contractual liability; it does not keep goods moving.

Supplier audits that prevent quality failures before shipment: Not the best choice: audits are preventive mitigation that lower probability; they are not actions to take after an event.

Moving part of the volume to a second supplier: Not the best choice: diversification is ongoing mitigation, not a plan triggered by the event.

Contingency planning prepares triggers, actions and resources in advance to minimize impact when a risk occurs.

Question 14

A risk manager at a consumer-goods company is ranking the risks in the register below by expected annual loss. What is the expected annual loss of the highest-ranked risk?

Risk register extract
RiskAnnual probabilityImpact if it occurs
Port strike at main import port0.10$1,800,000
Insolvency of packaging supplier0.05$4,200,000
Product recall from contamination0.02$9,000,000
Ransomware attack at 3PL0.15$1,300,000
Show answer & explanation

Answer: C

  1. Expected loss = probability × impact.
  2. Port strike: 0.10 × $1,800,000 = $180,000. Packaging insolvency: 0.05 × $4,200,000 = $210,000.
  3. Recall: 0.02 × $9,000,000 = $180,000. Ransomware: 0.15 × $1,300,000 = $195,000.
  4. Highest = packaging supplier insolvency at $210,000 per year.

$180,000: Not the best choice: this is the expected loss of the recall, the highest-impact risk (0.02 × $9,000,000), and also of the port strike; neither ranks first.

$195,000: Not the best choice: this is the ransomware risk, the most probable one (0.15 × $1,300,000); highest probability does not mean highest expected loss.

$210,000: Correct. (ECM VII.B) Expected loss = probability × impact; supplier insolvency gives 0.05 × $4,200,000 = $210,000, the highest of the four.

$9,000,000: Not the best choice: this is the recall impact alone, ignoring its 0.02 probability.

Rank register entries by expected loss (probability × impact), then check high-impact items separately against risk tolerance.

Evaluate and Optimize the Supply Chain

Question 15

A toy importer wants its contract factories to hold an independent, certifiable standard showing that they meet decent-workplace requirements such as no child labor, safe conditions and fair working hours. Which standard best meets this need?

Show answer & explanation

Answer: C

ISO 26000: Not the best choice: it gives social responsibility guidance but is explicitly not intended for certification.

ISO 28000: Not the best choice: it covers security management in the supply chain, not workplace social standards.

SA8000: Correct. (ECM VIII.C.4) SA8000 is a certifiable social accountability standard for decent work, audited by accredited third parties, covering child labor, health and safety, working hours and related requirements.

ISO 14001: Not the best choice: it certifies environmental management systems, not labor conditions.

For certifiable labor and workplace standards use SA8000; ISO 26000 is guidance only.

Question 16

A sportswear company launches new seasonal designs every few months, and demand for each style is hard to predict. It sources everything from a low-cost offshore factory with 16-week lead times, and it suffers both frequent stockouts and heavy end-of-season markdowns. Which evaluation of its supply chain strategy is most accurate?

Show answer & explanation

Answer: D

Functional products in a responsive chain: Not the best choice: it reverses the mismatch; these products are innovative and the chain is efficient.

The forecasting method alone is the root cause: Not the best choice: better forecasts help, but innovative demand stays uncertain; the strategy itself does not fit the product.

The offshore factory's unit cost is too high: Not the best choice: unit cost is the chain's strength; the losses come from lack of responsiveness.

Innovative products in an efficient chain: Correct. (ECM VIII.A.1) Short life cycles and unpredictable demand mark innovative products, which need a responsive supply chain; a cost-focused chain with long lead times produces exactly the stockouts and markdowns described.

Match functional products with efficient supply chains and innovative products with responsive ones.

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