CPIM (Basics of Supply Chain Management) 3

Question 1

Which type of supplier relationship involves the highest level of collaboration and information sharing?

Accepted Answer

Strategic alliance/partnership

Answer

Strategic alliances involve deep collaboration, shared risk, joint planning, and extensive information sharing between supply chain partners.

Question 2

The primary purpose of a Distribution Requirements Planning (DRP) system is to:

Accepted Answer

Project inventory replenishment needs across a distribution network

Answer

DRP extends MRP logic to distribution networks, projecting future inventory needs at multiple locations to plan timely replenishment.

Question 3

A company implements Vendor-Managed Inventory (VMI). What is the key operational change?

Accepted Answer

The supplier monitors customer inventory levels and initiates replenishment

Answer

In VMI, the supplier assumes responsibility for monitoring and replenishing the customer's inventory based on agreed-upon parameters.

Question 4

Which term describes the total time from when a customer places an order to when it is delivered?

Accepted Answer

Order-to-delivery lead time

Answer

Order-to-delivery lead time (also called order cycle time) measures the elapsed time from order placement to customer receipt.

Question 5

Cross-docking in a distribution center primarily achieves:

Accepted Answer

Reduced inventory holding time by transferring goods directly from inbound to outbound

Answer

Cross-docking eliminates or minimizes storage time by moving product directly from receiving docks to shipping docks.

CPIM - Certified in Production and Inventory Management Practice Test