CMRP CMRP Spare Parts and Inventory Management

Question 1

What is the primary purpose of establishing a Minimum-Maximum (Min-Max) inventory system for maintenance spare parts?

Accepted Answer

To trigger replenishment orders automatically when stock falls to the reorder point and cap stock at the maximum level

Answer

To eliminate all safety stock by ordering parts only when needed

Answer

To consolidate all spare parts purchasing with a single vendor

Answer

To reduce the number of part numbers stocked in the warehouse

Question 2

Which spare parts classification approach groups parts based on their criticality to production uptime and consequences of stockout?

Accepted Answer

ABC/XYZ or criticality-based classification

Answer

FIFO (First In, First Out) classification

Answer

Vendor-managed inventory classification

Answer

Economic Order Quantity (EOQ) classification

Question 3

What is 'safety stock' in the context of maintenance parts inventory?

Accepted Answer

Extra inventory held to buffer against unexpected demand spikes or supplier lead time variability

Answer

Parts stored in a locked cage to prevent unauthorized access

Answer

The minimum quantity required by safety regulations on-site

Answer

Redundant components installed in parallel on critical machines

Question 4

A maintenance storeroom has $500,000 in spare parts inventory and annual parts usage of $200,000. What is the inventory turnover ratio?

Accepted Answer

0.4

Answer

2.5

Answer

5.0

Answer

1.0

Question 5

What is an 'insurance spare' (or insurance item) in maintenance inventory management?

Accepted Answer

A high-cost, long-lead-time part kept on hand specifically because its failure would cause catastrophic downtime

Answer

A part covered by the equipment manufacturer's warranty

Answer

Any part that costs more than a pre-defined dollar threshold

Answer

A duplicate part stored off-site at an alternate facility

Question 6

Which key performance indicator (KPI) directly measures how often a requested spare part is available in the storeroom when maintenance needs it?

Accepted Answer

Storeroom service level (or fill rate)

Answer

Inventory carrying cost percentage

Answer

Parts obsolescence rate

Answer

Vendor on-time delivery rate