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(Basics of Supply Chain Management) Flashcards

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

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  1. Which type of supplier relationship involves the highest level of collaboration and information sharing?

    Answer: Strategic alliance/partnership

    Strategic alliances involve deep collaboration, shared risk, joint planning, and extensive information sharing between supply chain partners.

  2. The primary purpose of a Distribution Requirements Planning (DRP) system is to:

    Answer: Project inventory replenishment needs across a distribution network

    DRP extends MRP logic to distribution networks, projecting future inventory needs at multiple locations to plan timely replenishment.

  3. A company implements Vendor-Managed Inventory (VMI). What is the key operational change?

    Answer: The supplier monitors customer inventory levels and initiates replenishment

    In VMI, the supplier assumes responsibility for monitoring and replenishing the customer's inventory based on agreed-upon parameters.

  4. Which term describes the total time from when a customer places an order to when it is delivered?

    Answer: Order-to-delivery lead time

    Order-to-delivery lead time (also called order cycle time) measures the elapsed time from order placement to customer receipt.

  5. Cross-docking in a distribution center primarily achieves:

    Answer: Reduced inventory holding time by transferring goods directly from inbound to outbound

    Cross-docking eliminates or minimizes storage time by moving product directly from receiving docks to shipping docks.

  6. Which supply chain risk is BEST mitigated by maintaining dual or multiple sourcing strategies?

    Answer: Single-source supplier disruption

    Multiple sourcing spreads supply risk so that if one supplier fails, others can continue to provide the needed materials.

  7. In the context of supply chain sustainability, the 'triple bottom line' refers to measuring performance across:

    Answer: Economic, environmental, and social dimensions

    The triple bottom line framework evaluates organizational performance across economic (profit), environmental (planet), and social (people) dimensions.