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(Basics of Supply Chain Management) Flashcards

7 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which supply chain model maps processes into Plan, Source, Make, Deliver, and Return categories?

    Answer: SCOR (Supply Chain Operations Reference) model

    The SCOR model, developed by APICS/ASCM, provides a standardized framework with five process categories: Plan, Source, Make, Deliver, and Return.

  2. A company uses ABC analysis for inventory classification. Items classified as 'A' are characterized by:

    Answer: High annual dollar usage and tight control requirements

    ABC analysis classifies 'A' items as those with the highest annual dollar value (typically ~80% of value from ~20% of items), requiring the tightest management controls.

  3. Which forecasting method uses a weighted average of past observations, giving more weight to recent data?

    Answer: Exponential smoothing

    Exponential smoothing assigns exponentially decreasing weights to older observations, making recent data more influential in the forecast.

  4. The 'cash-to-cash cycle time' metric measures:

    Answer: Days inventory outstanding + days sales outstanding - days payable outstanding

    Cash-to-cash cycle time = DIO + DSO – DPO, measuring how long cash is tied up in the operating cycle before being recovered.

  5. Which type of waste, as defined by lean manufacturing principles, refers to overproducing more than what is currently needed?

    Answer: Overproduction

    Overproduction is considered the worst lean waste because it generates excess inventory, consumes resources prematurely, and masks other problems.

  6. A supply chain with a high degree of 'horizontal integration' means the company:

    Answer: Has expanded its operations across competitors or similar businesses at the same supply chain tier

    Horizontal integration involves expanding at the same level of the supply chain, such as a manufacturer acquiring a competing manufacturer.

  7. What is the primary benefit of Collaborative Planning, Forecasting, and Replenishment (CPFR)?

    Answer: It improves forecast accuracy and reduces inventory by sharing demand data between trading partners

    CPFR enables retailer and supplier to jointly develop forecasts and replenishment plans, reducing forecast errors and supply chain inefficiencies.