CPT Inventory Management & Supply Chain 2

Question 1

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

Accepted Answer

Actual customer demand

Answer

Pull systems initiate production only when actual customer demand signals a need, reducing overproduction and excess inventory.

Question 2

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

Accepted Answer

The supplier/vendor

Answer

VMI delegates the responsibility of monitoring and replenishing a customer's inventory to the supplier, based on agreed service levels.

Question 3

Cycle counting is best described as:

Accepted Answer

Auditing a small subset of inventory items on a rotating basis

Answer

Cycle counting is a continuous audit method that counts portions of inventory on a rotating schedule, providing more timely accuracy than annual physical inventories.

Question 4

The 'bullwhip effect' in supply chains describes:

Accepted Answer

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

Answer

The bullwhip effect occurs when small changes in end-customer demand cause increasingly large swings in orders further up the supply chain.

Question 5

Cross-docking in logistics involves:

Accepted Answer

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

Answer

Cross-docking moves products directly from receiving docks to shipping docks, bypassing warehouse storage to speed delivery and reduce handling costs.

(CPT) Certified Production Technician Practice Test

(CPT) Certified Production Technician Practice Test

CPT Inventory Management & Supply Chain 2