Inventory & Supply Chain Management Flashcards
7 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 7 Inventory & Supply Chain Management flashcards as text
Which supply chain performance framework measures performance across five dimensions: Reliability, Responsiveness, Agility, Costs, and Asset Management?
Answer: SCOR (Supply Chain Operations Reference) model
The SCOR model, developed by APICS/ASCM, provides a standardized framework for measuring and improving supply chain performance across five attributes.
What is 'cycle stock' in inventory management?
Answer: The portion of inventory depleted and replenished in normal ordering cycles
Cycle stock is the working inventory that is regularly consumed and replenished between orders, representing normal operating stock.
A company implements a two-bin kanban system. What triggers replenishment in this system?
Answer: Depletion of the first bin, signaling use of the second bin
In a two-bin system, emptying the first bin triggers a replenishment order while the second bin provides stock during the lead time.
Which concept describes the total time required for a product to move from raw material sourcing through production to delivery to the end customer?
Answer: Supply chain lead time (pipeline length)
Supply chain lead time (or pipeline length) encompasses the entire end-to-end time from raw material acquisition through customer delivery.
A purchasing manager wants to reduce the financial impact of slow-moving inventory. Which action is most appropriate?
Answer: Conduct an ABC analysis and reduce order quantities for C-class items
ABC analysis identifies low-value, slow-moving C items where reducing order quantities directly lowers excess stock and carrying costs.
What is the key difference between a 3PL (third-party logistics) provider and a 4PL (fourth-party logistics) provider?
Answer: 3PLs provide specific logistics services; 4PLs manage the entire supply chain including multiple 3PLs
A 4PL is a supply chain integrator that designs, builds, and manages a comprehensive supply chain solution, often overseeing multiple 3PL providers.
When evaluating total cost of ownership (TCO) for a supply chain decision, which cost element is often overlooked compared to purchase price?
Answer: Inbound freight and duty costs
TCO includes not just purchase price but also freight, duties, inspection, handling, carrying costs, and risk costs that can significantly exceed the unit price difference.