CIM Lean Inventory & JIT Systems 5

Question 1

In a lean supply chain, 'milk run' logistics refers to:

Accepted Answer

A scheduled route where a carrier picks up small loads from multiple suppliers in one trip

Answer

Milk run routes consolidate frequent small pickups from multiple suppliers, enabling JIT delivery without full truckload minimums.

Question 2

Which lean metric measures the percentage of time a process is actually adding value versus total elapsed time?

Accepted Answer

Process cycle efficiency (value-added time ÷ total lead time)

Answer

Process cycle efficiency exposes how little of the total lead time actually adds value, revealing the opportunity lean improvements can capture.

Question 3

A lean team identifies 'overprocessing' waste in their inspection department. What does this mean?

Accepted Answer

Performing more inspection steps or checks than the customer requires or defects justify

Answer

Overprocessing waste occurs when work exceeds what the customer values, consuming time and resources that do not increase product worth.

Question 4

What is the primary inventory implication of using a 'fixed-time, variable-quantity' replenishment system versus a JIT pull system?

Accepted Answer

Fixed-time systems require safety stock to cover demand variability between orders; JIT pull systems replenish based on actual consumption

Answer

Fixed-time systems must hold safety stock for the entire review period plus lead time, while pure pull systems replenish as actual demand occurs.

Question 5

A manufacturer adopts lean and reduces its average inventory from 30 days to 8 days of supply. Which financial statement impact is most direct?

Accepted Answer

Reduced current assets on the balance sheet, freeing working capital

Answer

Lower inventory directly reduces current assets, releasing working capital that can be redeployed to other investments.

(CIM) Certified Inventory Manager Practice Test