Global Supply Chain Coordination Flashcards
7 cards from real CIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Global Supply Chain Coordination flashcards as text
A company sources components from Asia with a 45-day lead time and sells to US customers expecting 3-day delivery. Which strategy BEST addresses this lead time gap?
Answer: Maintain domestic safety stock buffer to cover demand during replenishment lead time
Maintaining domestic safety stock bridges the gap between long international lead times and short customer delivery expectations.
What is the role of an 'Incoterm' such as FOB (Free on Board) in international trade?
Answer: It defines the point at which risk and cost transfer from seller to buyer during international shipment
Incoterms define the responsibilities, costs, and risks associated with the delivery of goods from seller to buyer in international trade.
Which global supply chain disruption factor is associated with the 'China Plus One' sourcing strategy?
Answer: Over-reliance on a single country for manufacturing
China Plus One strategy diversifies sourcing by adding a second manufacturing country to reduce dependence on China alone.
In multi-echelon global supply chains, what does 'echelon inventory' refer to?
Answer: The total inventory in a supply chain stage plus all inventory downstream of that stage
Echelon inventory includes all stock at a given level plus everything downstream, enabling coordinated inventory optimization across the supply chain.
A global retailer wants to reduce the 'bullwhip effect' across its international supply chain. Which action is MOST effective?
Answer: Share real-time point-of-sale data with all upstream suppliers
Sharing real-time demand data with upstream partners reduces demand signal distortion that amplifies order variability across supply chain tiers.
Which metric measures the effectiveness of a global supply chain in delivering the right product at the right time?
Answer: Perfect Order Rate
Perfect Order Rate measures the percentage of orders delivered on time, complete, undamaged, and with accurate documentation.
What is 'vendor-managed inventory' (VMI) in a global supply chain context?
Answer: The supplier takes responsibility for monitoring and replenishing the buyer's inventory
In VMI, the supplier monitors the buyer's inventory levels and initiates replenishment orders, improving supply chain efficiency.