CWLP Supply Chain Operations & Optimization 5

Question 1

Which supply chain disruption response strategy involves holding additional inventory specifically to buffer against supply uncertainty?

Accepted Answer

Safety stock buffering

Answer

Safety stock is held above cycle stock to protect against variability in supply lead times or demand fluctuations.

Question 2

A retailer shares real-time sales and inventory data with its supplier so the supplier can plan production proactively. This practice is called:

Accepted Answer

Continuous replenishment planning (CRP)

Answer

CRP uses shared POS and inventory data to allow suppliers to maintain agreed stock levels continuously without formal purchase orders.

Question 3

Which transportation mode typically offers the lowest cost per ton-mile for large, heavy shipments over long distances?

Accepted Answer

Rail freight

Answer

Rail offers the lowest cost per ton-mile for bulk and heavy commodities over long distances due to high capacity and fuel efficiency.

Question 4

In supply chain optimization, 'service level' is most precisely defined as:

Accepted Answer

The probability that demand will be met from available stock during a replenishment cycle

Answer

Service level in inventory management is the statistical probability of not stocking out during a given replenishment cycle.

Question 5

A manufacturer implements a 'milk run' strategy for inbound logistics. This means:

Accepted Answer

A carrier visits multiple suppliers on a fixed route to consolidate smaller pickups into one vehicle

Answer

Milk runs use a single vehicle to collect small quantities from multiple suppliers on a regular circuit, improving transportation efficiency.

(CWLP) Certified Warehouse and Logistics Professional Practice Test