CPT Inventory Management & Supply Chain 4

Question 1

A production facility uses a two-bin system for managing fastener inventory. What triggers a replenishment order in this system?

Accepted Answer

When the second bin is opened

Answer

In a two-bin system, opening the second bin signals that a replenishment order should be placed while the second bin supplies demand during lead time.

Question 2

Which metric best measures how efficiently a company converts inventory investment into sales revenue?

Accepted Answer

Inventory Turnover Ratio

Answer

Inventory Turnover Ratio (COGS ÷ Average Inventory) measures how many times inventory is sold and replaced in a period, indicating conversion efficiency.

Question 3

A supplier consistently delivers materials two days earlier than the agreed lead time. How does this affect the buyer's safety stock calculation?

Accepted Answer

Safety stock can be reduced since lead time variability decreased

Answer

Lower lead time variability reduces the uncertainty that safety stock must buffer, allowing a reduction in safety stock levels.

Question 4

What is the primary purpose of a Material Requirements Planning (MRP) system in production?

Accepted Answer

To determine what materials are needed, in what quantity, and when

Answer

MRP calculates material requirements by working backward from the master production schedule to determine quantities and timing for components and raw materials.

Question 5

A plant manager notices that cycle count results consistently differ from system records for items stored near shipping docks. What is the most likely root cause?

Accepted Answer

Receiving transactions not posted before items are moved

Answer

Items moved before receiving transactions are posted create a discrepancy between physical inventory and system records, a common issue in high-traffic dock areas.

(CPT) Certified Production Technician Practice Test

(CPT) Certified Production Technician Practice Test

CPT Inventory Management & Supply Chain 4