CMS Supply Chain Management & Logistics 2

Question 1

Which supply chain strategy is BEST suited for products with highly unpredictable demand and short life cycles?

Accepted Answer

Agile supply chain

Answer

An agile supply chain prioritizes responsiveness and flexibility, making it ideal for volatile demand and short product life cycles.

Question 2

In logistics, what does the term 'cross-docking' refer to?

Accepted Answer

Transferring inbound shipments directly to outbound transport with minimal storage

Answer

Cross-docking moves goods from inbound to outbound transportation with little to no storage time, reducing warehousing costs.

Question 3

A manufacturer uses a Vendor-Managed Inventory (VMI) program. Who is responsible for monitoring stock levels and triggering replenishment?

Accepted Answer

The supplier or vendor

Answer

In VMI, the supplier monitors the customer's inventory levels and takes responsibility for initiating replenishment orders.

Question 4

What is the primary purpose of a safety stock in supply chain management?

Accepted Answer

To buffer against demand variability and supply uncertainty

Answer

Safety stock acts as a buffer inventory held to protect against stockouts caused by unpredictable demand spikes or supply delays.

Question 5

Which logistics term describes the consolidation of shipments from multiple suppliers into one truckload destined for a single customer?

Accepted Answer

Milk run

Answer

A milk run is a logistics strategy where a single truck picks up shipments from multiple suppliers along a route and delivers them to one destination.

(CMS) Certified Manufacturing Specialist Practice Test

(CMS) Certified Manufacturing Specialist Practice Test

CMS Supply Chain Management & Logistics 2