Certified Supply Chain Professional (CSCP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Supply Chain Professional (CSCP) Exam with an interactive quiz that assesses your knowledge through flashcards and multiple-choice questions. Each question includes hints and detailed explanations to reinforce your learning and help you get ready for the test.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What happens to ordering costs as the number of orders placed increases?

They remain constant
They decrease
They increase
They become negligible

The correct answer is: They increase

When the number of orders placed increases, ordering costs typically increase as well. This is because ordering costs include expenses related to the activities involved in placing and receiving orders, such as processing orders, shipping costs, and administrative efforts. As more orders are placed, these associated costs accumulate since each order incurs a separate set of ordering expenses. In procurement and inventory management, while economies of scale can sometimes reduce costs in other areas, the direct costs associated with placing each individual order tend to add up with more frequent ordering, thereby increasing overall ordering costs. The relationship between the number of orders and associated costs highlights the importance of finding the right balance in order quantity to manage total costs effectively.