Practice Test Geeks(CIM) Certified Inventory Manager Practice Test
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Inventory Control & Stock Replenishment 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 Inventory Control & Stock Replenishment flashcards as text

  1. What is the purpose of cycle counting in inventory control?

    Answer: To continuously count subsets of inventory to maintain ongoing accuracy

    Cycle counting involves counting a rotating subset of inventory items regularly throughout the year to maintain accuracy without a full shutdown.

  2. Which formula correctly calculates Days Inventory Outstanding (DIO)?

    Answer: DIO = Average Inventory / (COGS / 365)

    DIO = (Average Inventory / COGS) × 365, representing how many days it takes to sell through the average inventory balance.

  3. In supply chain management, what is 'bullwhip effect' and how does it relate to inventory replenishment?

    Answer: It refers to demand signal amplification where small retail demand fluctuations cause large upstream inventory swings

    The bullwhip effect occurs when small demand variations at retail level are amplified into large order swings upstream, causing excessive inventory or stockouts.

  4. When calculating safety stock using the statistical method, which variable accounts for demand variability?

    Answer: Standard deviation of demand during lead time

    Safety stock = Z × σ_dLT, where σ_dLT is the standard deviation of demand during lead time, capturing demand variability.

  5. A Just-in-Time (JIT) inventory system achieves low inventory levels primarily by:

    Answer: Synchronizing deliveries closely with production or sales needs

    JIT minimizes inventory by timing supplier deliveries to arrive exactly when needed for production or sale, eliminating the need for large buffers.

  6. Which inventory replenishment strategy is best suited for items with highly seasonal or unpredictable demand patterns?

    Answer: Demand-driven replenishment with short lead times and flexible suppliers

    Demand-driven replenishment with agile supply chains is best for unpredictable demand, as it responds to actual signals rather than fixed forecasts.

  7. What is the main advantage of using RFID technology for inventory control compared to traditional barcodes?

    Answer: RFID allows multiple items to be scanned simultaneously without line-of-sight

    RFID can read multiple tags simultaneously without requiring line-of-sight, enabling faster and more automated inventory tracking than barcodes.