MRP Inventory Control & Supply Chain Management 5

Question 1

What is the primary function of a 'cross-docking' facility in supply chain logistics?

Accepted Answer

Transfer of inbound shipments directly to outbound transportation with minimal storage

Answer

Cross-docking transfers products from inbound trucks directly to outbound trucks, bypassing storage and reducing handling time and warehouse costs.

Question 2

Which inventory control technique involves counting a small subset of inventory items each day on a rotating schedule throughout the year?

Accepted Answer

Cycle counting

Answer

Cycle counting divides inventory into segments and counts a portion each day, providing ongoing accuracy verification without shutting down operations for a full count.

Question 3

A manufacturer uses a two-bin inventory system for a low-value fastener. What triggers a replenishment order in this system?

Accepted Answer

When the first bin is emptied and the second bin begins to be used

Answer

In a two-bin system, the first bin holds cycle stock and the second holds safety/reorder stock; emptying the first bin signals the need to reorder.

Question 4

Which supply chain disruption response strategy involves maintaining relationships with pre-qualified backup suppliers who are not regularly used?

Accepted Answer

Supplier pre-qualification with dormant capacity

Answer

Maintaining pre-qualified backup suppliers provides a ready alternative source that can be activated quickly during primary supplier disruptions without qualification delays.

Question 5

In the context of MRP, what is a 'firm planned order' (FPO)?

Accepted Answer

A planned order manually frozen to prevent automatic rescheduling by the MRP system

Answer

A firm planned order is locked by a planner to protect it from automatic changes by the MRP system, useful when the planner has commitments or special conditions to honor.

(MRP) MRP Certified Agents Practice Test

(MRP) MRP Certified Agents Practice Test

MRP Inventory Control & Supply Chain Management 5