CIM Global Supply Chain Coordination 3

Question 1

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?

Accepted Answer

Maintain domestic safety stock buffer to cover demand during replenishment lead time

Answer

Maintaining domestic safety stock bridges the gap between long international lead times and short customer delivery expectations.

Question 2

What is the role of an 'Incoterm' such as FOB (Free on Board) in international trade?

Accepted Answer

It defines the point at which risk and cost transfer from seller to buyer during international shipment

Answer

Incoterms define the responsibilities, costs, and risks associated with the delivery of goods from seller to buyer in international trade.

Question 3

Which global supply chain disruption factor is associated with the 'China Plus One' sourcing strategy?

Accepted Answer

Over-reliance on a single country for manufacturing

Answer

China Plus One strategy diversifies sourcing by adding a second manufacturing country to reduce dependence on China alone.

Question 4

In multi-echelon global supply chains, what does 'echelon inventory' refer to?

Accepted Answer

The total inventory in a supply chain stage plus all inventory downstream of that stage

Answer

Echelon inventory includes all stock at a given level plus everything downstream, enabling coordinated inventory optimization across the supply chain.

Question 5

A global retailer wants to reduce the 'bullwhip effect' across its international supply chain. Which action is MOST effective?

Accepted Answer

Share real-time point-of-sale data with all upstream suppliers

Answer

Sharing real-time demand data with upstream partners reduces demand signal distortion that amplifies order variability across supply chain tiers.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Global Supply Chain Coordination 3