Practice Test Geeks(CPIM) Certified in Planning and Inventory Management Practice Test
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Distribution Planning 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.

Read the first 7 Distribution Planning flashcards as text

  1. Which distribution network design strategy places inventory closer to end customers to reduce lead times?

    Answer: Forward deployment

    Forward deployment positions inventory at locations closer to customers, reducing transit time and improving service levels.

  2. A company's distribution center receives full truckloads from suppliers and immediately sorts and ships to retail stores without storing inventory. This is called:

    Answer: Cross-docking

    Cross-docking transfers inbound shipments directly to outbound vehicles with minimal or no storage, reducing handling and storage costs.

  3. The total cost of a distribution network includes which of the following cost components?

    Answer: Transportation, warehousing, and inventory carrying costs

    Total distribution network cost includes transportation, warehousing, inventory carrying costs, order processing, and customer service costs.

  4. When a single DC serves all customers across a large geography, what is the primary tradeoff compared to using multiple regional DCs?

    Answer: Lower inventory costs but higher transportation costs

    Centralization reduces inventory through risk pooling but increases outbound transportation costs due to greater distances to customers.

  5. Which metric measures the percentage of customer orders shipped complete and on time from available stock?

    Answer: Perfect order rate

    Perfect order rate measures orders delivered complete, on time, damage-free, and with accurate documentation, reflecting overall distribution performance.

  6. A milk run route is best described as:

    Answer: A single truck making pickups or deliveries at multiple stops on a fixed route

    A milk run is a recurring route where one vehicle makes multiple pickups or deliveries at scheduled stops, consolidating shipments efficiently.

  7. Zone skipping in parcel distribution achieves cost savings by:

    Answer: Consolidating shipments and injecting them closer to destination zones, skipping carrier sorting hubs

    Zone skipping moves consolidated freight closer to the destination before tendering to the final carrier, reducing the number of zones charged and lowering costs.