CPP Supply Chain Management Flashcards
6 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPP Supply Chain Management flashcards as text
What does 'demand planning' involve in supply chain management?
Answer: Forecasting future customer demand to optimize inventory and production decisions
Demand planning uses historical data and market analysis to forecast future customer needs and align supply chain operations accordingly.
What does 'Total Cost of Ownership' (TCO) encompass in supply chain analysis?
Answer: All costs associated with acquiring and using a product throughout its entire life cycle
TCO encompasses all direct and indirect costs over a product's life cycle, including acquisition, operation, maintenance, and disposal.
What is 'supplier rationalization'?
Answer: Reducing the number of suppliers to streamline procurement and lower costs
Supplier rationalization is the process of strategically reducing the supplier base to improve efficiency, leverage buying power, and strengthen key relationships.
What characterizes a 'push' supply chain strategy?
Answer: Products are produced based on forecasted demand and pushed toward the market
In a push strategy, production and distribution decisions are driven by demand forecasts rather than real-time customer orders.
What does Collaborative Planning, Forecasting, and Replenishment (CPFR) promote?
Answer: Joint forecasting and replenishment planning between buyers and suppliers
CPFR is a business practice that combines shared intelligence from multiple supply chain partners to improve forecast accuracy and replenishment efficiency.
Which performance metric measures the percentage of orders delivered both on time and in full?
Answer: OTIF (On Time In Full)
OTIF measures the percentage of customer orders fulfilled on schedule and with the complete quantity ordered, making it a key supply chain performance indicator.