CPIM (Basics of Supply Chain Management) 2

Question 1

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

Accepted Answer

Agile supply chain

Answer

Agile supply chains are designed to respond quickly to unpredictable demand and market volatility.

Question 2

The 'bullwhip effect' in a supply chain refers to:

Accepted Answer

Demand variability that amplifies upstream from retailer to manufacturer

Answer

The bullwhip effect describes how small demand fluctuations at the retail level become progressively amplified as orders move upstream through the supply chain.

Question 3

Which metric measures the percentage of customer orders fulfilled completely from available stock without backorders or lost sales?

Accepted Answer

Fill rate

Answer

Fill rate measures the proportion of customer demand satisfied immediately from on-hand inventory.

Question 4

A company that owns and operates its own distribution network rather than outsourcing is using:

Accepted Answer

Insourcing/vertical integration

Answer

Insourcing or vertical integration means the company retains internal control over logistics functions instead of contracting them out.

Question 5

In supply chain management, 'postponement' refers to:

Accepted Answer

Deferring product differentiation to as late as possible in the process

Answer

Postponement delays final product customization until closer to the point of delivery to reduce inventory risk and improve flexibility.

CPIM - Certified in Production and Inventory Management Practice Test

CPIM - Certified in Production and Inventory Management Practice Test

CPIM (Basics of Supply Chain Management) 2