CPIM Supply Planning & Procurement Processes 5

Question 1

A planner discovers that a supplier's quoted lead time has increased from 4 weeks to 7 weeks. What is the most immediate impact on the supply plan?

Accepted Answer

Planned order release dates must be moved earlier to prevent stockouts

Answer

Longer lead times require earlier order releases to ensure material arrives on time; the reorder point also increases.

Question 2

Which procurement approach is most effective for reducing the total number of suppliers while maintaining supply continuity?

Accepted Answer

Supplier rationalization

Answer

Supplier rationalization systematically reduces the supply base to a smaller, more strategic set of preferred vendors.

Question 3

In a supply chain context, 'supply variability' refers to:

Accepted Answer

Unpredictability in supplier lead times, quality, or quantity delivered

Answer

Supply variability encompasses all sources of unreliability from the supply side, including late deliveries and quantity shortages.

Question 4

Which of the following best describes a 'supplier development' initiative?

Accepted Answer

Collaborating with an existing supplier to improve their capabilities and performance

Answer

Supplier development involves investing time and resources to help an existing supplier improve quality, delivery, or capacity.

Question 5

A company implements postponement as a supply strategy. Which scenario best illustrates this concept?

Accepted Answer

Deferring final product configuration until a customer order is received

Answer

Postponement delays differentiation to the last possible moment, allowing generic intermediates to serve multiple market configurations.

(CPIM) Certified in Planning and Inventory Management Practice Test