CPIM APICS Certified in Production and Inventory Management 5

Question 1

What is the primary goal of vendor-managed inventory (VMI)?

Accepted Answer

Allow the supplier to monitor and replenish the buyer's stock autonomously

Answer

In VMI, the supplier takes responsibility for monitoring inventory levels and initiating replenishment at the buyer's location.

Question 2

Which performance metric measures the percentage of customer orders shipped complete and on time on the first attempt?

Accepted Answer

Perfect order fulfillment

Answer

Perfect order fulfillment tracks orders that are delivered complete, on time, undamaged, and with correct documentation.

Question 3

In distribution requirements planning (DRP), what triggers a planned replenishment order at a field warehouse?

Accepted Answer

Projected inventory falling below the reorder point at that location

Answer

DRP generates planned orders when projected on-hand inventory at a distribution location is expected to fall below its safety stock or reorder point.

Question 4

Which cost trade-off does the total cost curve in EOQ analysis balance?

Accepted Answer

Ordering costs vs. carrying costs

Answer

EOQ minimizes total annual inventory cost by finding the order quantity where ordering cost equals carrying cost.

Question 5

Which supply chain risk mitigation strategy involves sourcing the same component from multiple suppliers?

Accepted Answer

Dual sourcing

Answer

Dual (or multi) sourcing reduces supply disruption risk by preventing dependence on a single supplier.

CPIM - Certified in Production and Inventory Management Practice Test