CPIM Supply Planning & Procurement Processes 2

Question 1

A company's supplier delivers 480 units when 500 were ordered. What is the supplier's fill rate?

Accepted Answer

96%

Answer

Fill rate = units delivered / units ordered = 480/500 = 96%.

Question 2

Which procurement strategy involves a long-term agreement with a single supplier to obtain favorable pricing and priority service?

Accepted Answer

Sole sourcing

Answer

Sole sourcing establishes a long-term relationship with one supplier, often yielding better pricing and service levels.

Question 3

In MRP, what triggers a planned order release for a purchased component?

Accepted Answer

When net requirements exceed available inventory after offsetting by lead time

Answer

MRP offsets net requirements by lead time to determine when a planned order must be released.

Question 4

Which of the following best describes a blanket purchase order?

Accepted Answer

An open order authorizing repeated deliveries of a commodity over a set period

Answer

A blanket PO authorizes the supplier to make multiple deliveries of a specified item over a defined period at agreed-upon terms.

Question 5

A buyer negotiates a 2/10 net 30 payment term. What does '2/10' mean?

Accepted Answer

A 2% discount if paid within 10 days

Answer

2/10 net 30 means a 2% discount is available if the invoice is paid within 10 days; otherwise full payment is due in 30 days.

(CPIM) Certified in Planning and Inventory Management Practice Test