CIM Technology & Inventory Software 2 — Questions and Answers
Question 1: Which inventory software feature automatically triggers purchase orders when stock falls below a set threshold?
- Demand sensing
- Reorder point automation (Correct answer)
- Safety stock calculation
- Lead time tracking
Correct answer: Reorder point automation
Reorder point automation generates purchase orders when on-hand inventory drops below the predefined reorder point level.
Question 2: In a Warehouse Management System (WMS), what does 'slotting optimization' refer to?
- Scheduling receiving dock appointments
- Assigning storage locations to maximize picking efficiency (Correct answer)
- Tracking employee shift slots
- Allocating server memory for database queries
Correct answer: Assigning storage locations to maximize picking efficiency
Slotting optimization assigns SKUs to storage locations based on velocity, weight, and pick frequency to reduce travel time.
Question 3: Which EDI transaction set is used to send a Purchase Order from a buyer to a supplier?
- EDI 810
- EDI 850 (Correct answer)
- EDI 856
- EDI 855
Correct answer: EDI 850
EDI 850 is the standard transaction set for transmitting a Purchase Order electronically from buyer to supplier.
Question 4: A company implements RFID at the pallet level rather than the item level. What is the PRIMARY trade-off?
- Lower read accuracy vs. higher cost
- Lower cost vs. less granular inventory visibility (Correct answer)
- Faster processing vs. incompatibility with ERP
- Better security vs. slower receiving
Correct answer: Lower cost vs. less granular inventory visibility
Pallet-level RFID reduces tag and implementation costs but sacrifices item-level tracking granularity.
Question 5: Which technology enables real-time inventory synchronization across multiple sales channels (e-commerce, retail, wholesale)?
- MRP II
- Omnichannel inventory management software (Correct answer)
- Standalone POS systems
- Batch EDI processing
Correct answer: Omnichannel inventory management software
Omnichannel inventory management platforms sync stock levels across all channels in real time to prevent overselling.
Question 6: What is the function of an API integration between an inventory system and an e-commerce platform?
- Generates printed pick lists for warehouse workers
- Enables automatic bidirectional data exchange without manual entry (Correct answer)
- Stores backup copies of inventory records offline
- Encrypts customer payment data
Correct answer: Enables automatic bidirectional data exchange without manual entry
API integration allows the inventory system and e-commerce platform to exchange order, stock, and fulfillment data automatically in real time.
Question 7: In inventory software, what does the term 'ATP' (Available to Promise) calculate?
- The total value of inventory on hand
- Quantity available for new customer orders after existing commitments (Correct answer)
- Supplier lead time for a specific SKU
- Average cost per unit across all warehouses
Correct answer: Quantity available for new customer orders after existing commitments
ATP calculates the uncommitted inventory balance available to promise for new orders, considering current stock and scheduled receipts minus existing commitments.
CIM Technology & Inventory Software 2
Which inventory software feature automatically triggers purchase orders when stock falls below a set threshold?