CPIM (Basics of Supply Chain Management) 4

Question 1

Which supply chain model maps processes into Plan, Source, Make, Deliver, and Return categories?

Accepted Answer

SCOR (Supply Chain Operations Reference) model

Answer

The SCOR model, developed by APICS/ASCM, provides a standardized framework with five process categories: Plan, Source, Make, Deliver, and Return.

Question 2

A company uses ABC analysis for inventory classification. Items classified as 'A' are characterized by:

Accepted Answer

High annual dollar usage and tight control requirements

Answer

ABC analysis classifies 'A' items as those with the highest annual dollar value (typically ~80% of value from ~20% of items), requiring the tightest management controls.

Question 3

Which forecasting method uses a weighted average of past observations, giving more weight to recent data?

Accepted Answer

Exponential smoothing

Answer

Exponential smoothing assigns exponentially decreasing weights to older observations, making recent data more influential in the forecast.

Question 4

The 'cash-to-cash cycle time' metric measures:

Accepted Answer

Days inventory outstanding + days sales outstanding - days payable outstanding

Answer

Cash-to-cash cycle time = DIO + DSO – DPO, measuring how long cash is tied up in the operating cycle before being recovered.

Question 5

Which type of waste, as defined by lean manufacturing principles, refers to overproducing more than what is currently needed?

Accepted Answer

Overproduction

Answer

Overproduction is considered the worst lean waste because it generates excess inventory, consumes resources prematurely, and masks other problems.

CPIM - Certified in Production and Inventory Management Practice Test

CPIM - Certified in Production and Inventory Management Practice Test

CPIM (Basics of Supply Chain Management) 4