DMD Supply Chain & Logistics in Manufacturing 2

Question 1

What is 'safety stock' in inventory management?

Accepted Answer

Extra inventory held as a buffer against unexpected demand spikes or supply delays

Answer

Safety stock is buffer inventory maintained to prevent stockouts caused by demand variability or supplier lead time uncertainty.

Question 2

In digital manufacturing supply chains, what is a Kanban system used for?

Accepted Answer

To signal when inventory needs to be replenished by using visual cues or digital triggers

Answer

Kanban uses visual or digital signals (cards, bins, alerts) to trigger replenishment of materials only when they are consumed, supporting pull-based production.

Question 3

Which of the following best describes 'supplier qualification' in a manufacturing supply chain?

Accepted Answer

The process of evaluating and approving suppliers based on quality, capability, and reliability criteria

Answer

Supplier qualification assesses whether a supplier can consistently meet quality, delivery, and regulatory requirements before being approved for production use.

Question 4

What is 'vertical integration' in the context of a manufacturing supply chain?

Accepted Answer

When a company controls multiple stages of its supply chain, from raw materials to finished goods

Answer

Vertical integration means a manufacturer owns or controls upstream suppliers and/or downstream distributors, reducing dependency on external parties.

Question 5

What does 'vendor-managed inventory' (VMI) mean in digital manufacturing?

Accepted Answer

The supplier monitors and replenishes the customer's inventory based on agreed-upon levels and data sharing

Answer

In VMI, the supplier takes responsibility for maintaining agreed stock levels at the customer's location, using shared demand and inventory data.

DMD - Digital Manufacturing and Design Technology Certification Practice Test

DMD - Digital Manufacturing and Design Technology Certification Practice Test

DMD Supply Chain & Logistics in Manufacturing 2