CPT Inventory Management & Supply Chain 2

Question 1

In a 'pull' production system, manufacturing is triggered by:

Accepted Answer

Actual customer demand

Answer

Pre-set production schedules

Answer

Supplier delivery schedules

Answer

Management demand forecasts

Question 2

In a Vendor-Managed Inventory (VMI) arrangement, who is responsible for monitoring and replenishing inventory?

Accepted Answer

The supplier/vendor

Answer

The warehouse manager

Answer

The customer's procurement team

Answer

A third-party logistics provider

Question 3

Cycle counting is best described as:

Accepted Answer

Auditing a small subset of inventory items on a rotating basis

Answer

Counting all inventory items once per fiscal year

Answer

Tracking the number of production cycles completed

Answer

Counting defective items at the end of each shift

Question 4

The 'bullwhip effect' in supply chains describes:

Accepted Answer

Amplified order variability as demand signals move upstream through the supply chain

Answer

A technique for disciplining underperforming suppliers

Answer

Rapid acceleration of delivery speeds across the network

Answer

Strict enforcement of inventory accuracy policies

Question 5

Cross-docking in logistics involves:

Accepted Answer

Transferring goods from inbound to outbound vehicles with minimal or no storage

Answer

Storing products across multiple distribution centers

Answer

Shipping goods across international borders simultaneously

Answer

Checking products at border customs inspections

Question 6

Kitting in manufacturing refers to:

Accepted Answer

Pre-assembling sets of components needed for a specific job into one package

Answer

Sewing or fastening components together on the production line

Answer

Inspecting finished kits for quality defects

Answer

Shipping multiple customer orders together to reduce freight costs

Question 7

Which term describes the specific inventory level at which a replenishment order must be placed?

Accepted Answer

Reorder point

Answer

Safety stock level

Answer

Maximum stock level

Answer

Minimum order quantity