Retail Supply Chain & Replenishment Flashcards
7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Retail Supply Chain & Replenishment flashcards as text
A retailer experiences a 'bullwhip effect' in its supply chain. Which outcome best describes this phenomenon?
Answer: Small fluctuations in retail demand cause increasingly large swings in upstream order volumes
The bullwhip effect describes how small demand variability at retail is amplified into large order swings further up the supply chain due to forecast errors and order batching.
A retailer's planogram calls for a shelf 'facing' of 3 for a specific SKU. What does this mean?
Answer: Three visible units of the product face the shopper from the front of the shelf
A facing is one unit of a product visible to shoppers from the front; 3 facings means three units side-by-side are visible at the shelf front.
When evaluating supplier performance, which KPI measures the percentage of orders delivered on time and in full?
Answer: OTIF (on-time in-full)
OTIF tracks whether suppliers deliver the correct quantity on the agreed date, combining on-time delivery and order completeness into one metric.
A retailer uses ABC inventory classification. Which statement about 'C' items is most accurate?
Answer: C items are low-volume, low-value SKUs that warrant simpler, less frequent review
In ABC analysis, C items contribute the least to revenue/volume and are managed with lighter-touch controls to conserve analytical resources.
A buyer negotiates extended payment terms from net-30 to net-60 with a key supplier. What is the primary financial benefit to the retailer?
Answer: Improved cash flow by holding cash longer before paying
Extended payment terms allow the retailer to keep cash on hand for an additional 30 days, improving working capital and cash flow.
Which replenishment method involves ordering a variable quantity at fixed, regular time intervals to bring stock up to a target level?
Answer: Periodic review (P-system)
The periodic review (P-system) orders at set intervals and adjusts the order quantity to reach a predetermined target inventory level.
A retailer's shrink rate increased from 1.2% to 2.1% of sales year-over-year. Which supply chain function is most directly responsible for investigating internal shrink at the DC?
Answer: Loss prevention / asset protection
Loss prevention (asset protection) investigates and mitigates shrink caused by theft, damage, or administrative error at both store and DC levels.