APICS Certified in Production and Inventory Management Flashcards

What is the primary goal of vendor-managed inventory (VMI)?

Answer: Allow the supplier to monitor and replenish the buyer's stock autonomously

In VMI, the supplier takes responsibility for monitoring inventory levels and initiating replenishment at the buyer's location.

Which performance metric measures the percentage of customer orders shipped complete and on time on the first attempt?

Answer: Perfect order fulfillment

Perfect order fulfillment tracks orders that are delivered complete, on time, undamaged, and with correct documentation.

In distribution requirements planning (DRP), what triggers a planned replenishment order at a field warehouse?

Answer: Projected inventory falling below the reorder point at that location

DRP generates planned orders when projected on-hand inventory at a distribution location is expected to fall below its safety stock or reorder point.

Which cost trade-off does the total cost curve in EOQ analysis balance?

Answer: Ordering costs vs. carrying costs

EOQ minimizes total annual inventory cost by finding the order quantity where ordering cost equals carrying cost.

Which supply chain risk mitigation strategy involves sourcing the same component from multiple suppliers?

Answer: Dual sourcing

Dual (or multi) sourcing reduces supply disruption risk by preventing dependence on a single supplier.

In a kanban system, what determines the number of kanban cards in circulation?

Answer: Average demand, lead time, safety stock, and container size

The number of kanbans is calculated from demand rate, replenishment lead time, safety buffer, and container quantity.

Which APICS CPIM module focuses specifically on execution and control of operations, including input/output control and scheduling?

Answer: Execution and Control of Operations

The Execution and Control of Operations module covers shop floor control, input/output management, and performance measurement.