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Inventory Management & Supply Chain Flashcards

7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Inventory Management & Supply Chain flashcards as text

  1. A food manufacturer receives a shipment where 15% of units fail visual inspection. The appropriate immediate action is to:

    Answer: Quarantine the non-conforming units and issue a supplier corrective action request

    Non-conforming product should be quarantined to prevent use, and the supplier must be notified via a corrective action request to address the root cause.

  2. Just-in-time (JIT) inventory philosophy reduces costs primarily by:

    Answer: Minimizing inventory on hand by aligning deliveries closely with production needs

    JIT reduces carrying costs by receiving materials only when needed for production, eliminating excess inventory storage.

  3. Which document accompanies a shipment and serves as both a receipt of goods and a contract for their transport?

    Answer: Bill of lading

    A bill of lading is a legal document between shipper and carrier that details the freight contents and serves as proof of shipment.

  4. In food supply chains, 'cold chain integrity' refers to:

    Answer: Maintaining required temperature conditions continuously from origin to end user

    Cold chain integrity means temperature-sensitive products remain within specified ranges throughout transport, storage, and distribution.

  5. Which purchasing strategy consolidates orders from multiple departments to obtain volume discounts?

    Answer: Centralized purchasing

    Centralized purchasing pools demand across the organization to leverage volume discounts and consistent supplier terms.

  6. A food company's Days Inventory Outstanding (DIO) increases significantly quarter over quarter. This most likely indicates:

    Answer: Slow-moving or excess stock is accumulating

    A rising DIO means it takes longer to sell through inventory, which can signal overstocking, slowing demand, or spoilage risk.

  7. Consignment inventory in food supply chains means:

    Answer: The supplier retains ownership until the buyer sells or uses the product

    In consignment arrangements, the supplier ships product but retains title until the buyer consumes or sells it, reducing the buyer's financial risk.