CLL CLL Supply Chain & Lean Procurement 1 — Questions and Answers
Question 1: Which lean concept focuses on pulling materials through the supply chain based on actual customer demand rather than forecasts?
- Push production
- Pull system (Kanban) (Correct answer)
- Batch-and-queue
- Safety stock buffering
Correct answer: Pull system (Kanban)
A pull system, often implemented via Kanban, triggers replenishment only when downstream demand signals are received, eliminating overproduction.
Question 2: What is the primary goal of supplier development in a lean supply chain?
- Reducing the number of suppliers
- Building long-term partnerships to improve quality and delivery performance (Correct answer)
- Negotiating the lowest possible unit price
- Outsourcing all non-core activities
Correct answer: Building long-term partnerships to improve quality and delivery performance
Lean supplier development focuses on collaborative, long-term relationships that improve mutual quality, responsiveness, and total cost.
Question 3: In lean procurement, what does 'total cost of ownership (TCO)' emphasize over unit price?
- Only the purchase price of goods
- All costs across the lifecycle including quality, delivery, and disposal (Correct answer)
- Transportation costs exclusively
- Administrative overhead costs only
Correct answer: All costs across the lifecycle including quality, delivery, and disposal
TCO accounts for acquisition, operating, quality, logistics, and end-of-life costs to make fully informed procurement decisions.
Question 4: Which lean supply chain metric measures the time from raw material receipt to finished goods delivery to the customer?
- Takt time
- Order-to-cash cycle
- Supply chain lead time (Correct answer)
- Inventory turns
Correct answer: Supply chain lead time
Supply chain lead time captures end-to-end flow time and is a key target for lean improvement to reduce working capital and increase responsiveness.
Question 5: What lean strategy involves working with a single trusted supplier for a critical component to reduce complexity and build deeper alignment?
- Dual sourcing
- Single sourcing (Correct answer)
- Global sourcing
- Spot buying
Correct answer: Single sourcing
Single sourcing concentrates volume with one supplier to enable deeper collaboration, joint improvement, and reduced transaction costs.
Question 6: How does milk-run logistics support lean supply chain operations?
- It consolidates large shipments for cost savings
- It makes frequent, small-lot pickups from multiple suppliers on a fixed route (Correct answer)
- It uses refrigerated transport for perishable goods
- It eliminates all inbound inspection steps
Correct answer: It makes frequent, small-lot pickups from multiple suppliers on a fixed route
Milk-run routes pick up small, frequent quantities from several suppliers, synchronizing inbound flow with production pull and reducing inventory.
CLL CLL Supply Chain & Lean Procurement 1
Which lean concept focuses on pulling materials through the supply chain based on actual customer demand rather than forecasts?