CWLP Supply Chain Operations & Optimization 4

Question 1

Which supply chain design strategy holds minimal finished goods inventory and instead postpones final product configuration until a customer order is received?

Accepted Answer

Postponement (delayed differentiation)

Answer

Postponement defers value-added activities until demand is known, reducing finished goods variety and inventory risk.

Question 2

A supply chain's 'cash-to-cash cycle time' is calculated as:

Accepted Answer

Days Inventory Outstanding (DIO) + DSO − DPO

Answer

Cash-to-cash = DIO + DSO − DPO; it measures how many days cash is tied up in the operating cycle.

Question 3

Demand sensing uses which type of data to generate short-term forecasts more accurately than traditional statistical models?

Accepted Answer

Point-of-sale and real-time consumption signals

Answer

Demand sensing uses granular, real-time POS data and other consumption signals to detect actual demand patterns as they emerge.

Question 4

When a manufacturer allows a retailer to trigger replenishment orders automatically based on agreed inventory levels, this is known as:

Accepted Answer

Vendor-managed inventory (VMI)

Answer

In VMI, the supplier takes responsibility for monitoring and replenishing the customer's stock within agreed parameters.

Question 5

Which lean principle focuses on producing only what is needed, when it is needed, and in the amount needed?

Accepted Answer

Just-in-Time (JIT)

Answer

JIT aims to eliminate waste by synchronizing production and delivery precisely with actual demand.

(CWLP) Certified Warehouse and Logistics Professional Practice Test

(CWLP) Certified Warehouse and Logistics Professional Practice Test

CWLP Supply Chain Operations & Optimization 4