Practice Test Geeks(CPM) Certified Plant Manager Practice Test
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Procurement & JIT Inventory Flashcards

7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Procurement & JIT Inventory flashcards as text

  1. A plant manager wants to reduce supplier lead time variability. Which strategy best addresses this goal?

    Answer: Develop long-term supplier partnerships with shared forecasting

    Long-term supplier partnerships with shared forecasting align incentives and reduce lead time variability through better planning coordination.

  2. In a JIT system, what is the primary role of a kanban card?

    Answer: Authorize replenishment of a specific part or material

    A kanban card serves as a visual signal that authorizes production or replenishment of a specific quantity of parts or materials.

  3. Which of the following purchasing metrics directly measures supplier delivery reliability?

    Answer: On-time delivery rate

    On-time delivery rate measures the percentage of orders delivered by the promised date, directly indicating supplier delivery reliability.

  4. A plant implements vendor-managed inventory (VMI). Who bears responsibility for maintaining optimal stock levels?

    Answer: The supplier

    In VMI, the supplier monitors inventory levels and replenishes stock proactively, transferring inventory management responsibility to them.

  5. What does the term 'blanket purchase order' refer to in procurement?

    Answer: A long-term agreement to purchase a quantity over time at fixed pricing

    A blanket purchase order is a long-term commitment to buy a set quantity of goods over a period at pre-negotiated prices, reducing administrative overhead.

  6. Under JIT principles, which condition best supports a successful single-supplier strategy?

    Answer: The supplier has consistently high quality and delivery performance

    Single-supplier sourcing under JIT requires high confidence in the supplier's quality and delivery consistency to avoid production disruptions.

  7. Which of the following best describes 'total cost of ownership' (TCO) in a procurement context?

    Answer: The sum of all costs associated with acquiring, using, and disposing of a purchased item

    TCO encompasses acquisition price plus all downstream costs including quality failures, logistics, maintenance, and disposal over the item's life.