CPM Procurement & JIT Inventory 2

Question 1

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

Accepted Answer

Develop long-term supplier partnerships with shared forecasting

Answer

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

Question 2

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

Accepted Answer

Authorize replenishment of a specific part or material

Answer

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

Question 3

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

Accepted Answer

On-time delivery rate

Answer

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

Question 4

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

Accepted Answer

The supplier

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

(CPM) Certified Plant Manager Practice Test

(CPM) Certified Plant Manager Practice Test

CPM Procurement & JIT Inventory 2