CPIM - Certified in Planning and Inventory Management Supply Planning and Management Questions and Answers

Question 1

A manufacturing company is experiencing frequent stockouts of a critical component, leading to production delays.
Their current approach involves placing large, infrequent orders from a single supplier located overseas.
Which of the following is the MOST effective initial step to improve their supply planning process and mitigate this risk?

Accepted Answer

Developing relationships with alternative or local suppliers to increase sourcing flexibility.

Answer

Implementing a new ERP system to better track inventory levels.

Answer

Negotiating lower prices with the current supplier to reduce costs.

Answer

Immediately increasing safety stock levels by 50% for the critical component.

Question 2

In the context of supplier relationship management (SRM), which of the following is a primary goal when segmenting suppliers?

Accepted Answer

To identify strategic partners for collaborative activities like joint forecasting and product development.

Answer

To ensure all suppliers are treated identically, fostering a sense of fairness.

Answer

To consolidate all purchasing to the supplier offering the lowest unit price.

Answer

To minimize communication with all non-strategic suppliers to save time.

Question 3

Which of the following metrics would be LEAST effective for evaluating a supplier's delivery reliability?

Accepted Answer

Number of quality defects per million

Answer

On-time delivery percentage

Answer

Order fill rate

Answer

Lead time variability

Question 4

A supply planner is tasked with creating a supply plan that aligns with the aggregate-level Sales and Operations Plan (S&OP). The primary purpose of this supply plan is to:

Accepted Answer

Determine the appropriate capacity and resource levels needed to meet projected demand.

Answer

Generate a detailed, daily production schedule for the shop floor.

Answer

Issue purchase orders to suppliers for all required raw materials.

Answer

Finalize the logistics and transportation routes for finished goods.

Question 5

When developing a supply chain risk management strategy, a company identifies that its primary supplier for a key raw material is located in a geopolitically unstable region. Which of the following would be a proactive mitigation strategy?

Accepted Answer

Establishing a safety stock policy for the raw material at the company's own facility.

Answer

Waiting for a disruption to occur and then expediting shipments from that supplier.

Answer

Ignoring the risk as it is external and beyond the company's control.

Answer

Increasing the frequency of performance reviews with the existing supplier.

Question 6

Which of the following is a key input to the Material Requirements Planning (MRP) process?

Accepted Answer

Bill of Materials (BOM)

Answer

Final assembly schedule

Answer

Sales and Operations Plan (S&OP)

Answer

Supplier performance scorecards