Supply Chain Management Systems

Comprehensive Study For the CPIM (Certified in Production and Inventory Management) Exam

Sample CPIM Questions (Included in Program)

 

  1.  Not only does SCOR act as a management tool for addressing and improving supply chain management decisions with in a company, but it also describes the business processes essential for:

 

Choose one of the following:

 

A.    Satisfying a customer’s demand.

B.     Organizing better transport efforts.

C.     Maintaining proper stock in warehouses for retail oriented businesses.

D.    Properly utilizing the Human Resource staff.

 

Answer: A

 

Explanation: The supply chain operations reference model (SCOR) is a management tool for addressing and improving supply chain management decisions within a company as well as with external parties such as suppliers and customers. The model describes the business processes essential for satisfying a customer’s demands.

 

  1.  The SCOR model focuses on five areas of the supply chain. What five areas are they?

 

Choose one of the following:

 

A.    Plan, sales, make, deliver and return.

B.     Programs, situational selling, progress, deliver and return.

C.     Plan, source, make, deliver and return.

D.    Prepare, source, create, deliver and reject.

 

Answer: C

 

Explanation: The model describes the business processes essential for satisfying a customer’s

demands. It focuses on five areas of the supply chain, which are plan, source, make, deliver, and return.

 

  1.  Each of these areas is critical so that you can get your product successfully along each level. What do these areas represent?

 

Choose one of the following:

 

A.    The character of your external sources.

B.     The nature of your business.

C.     The relationship with internal sources.

D.    The link in the supply chain.

 

Answer: D

 

Explanation: It focuses on five areas of the supply chain, which are plan, source, make, deliver, and return. Each of these areas represents a link in the supply chain that is very critical if you are to get your product successfully along each level.

 

  1.  Your supply chain strategy must be aligned with what one aspect of your organization?

 

Choose one of the following:

 

A.    Overall organizational strategy.

B.     Supply chain methods.

C.     External relationships.

D.    Internal organization.

 

Answer: A

 

Explanation: Supply chain strategy has to be aligned with the overall organizational strategy. This is why top management must be involved in the supply chain design process.

 

  1.  The design process should have six steps that are included. The first and most important step is:

 

Choose one of the following:

 

A.    Measure performance of all employees in the organization.

B.     Take inventory of all external relationships.

C.     Establish supply chain objectives.

D.    Formulate new strategies on a month to month basis.


Answer: C

 

Explanation: The design process should have the following steps included. Establish supply chain objectives.

 

  1.  The second step of the supply chain process is to do what with your supply chain strategy?

 

Choose one of the following:

 

A.    Formulate the supply chain accordingly.

B.     Rewrite the marketing plan.

C.     Reaffirm the external relationships.

D.    Reorganize internal relationships.

 

Answer: A

 

Explanation: The design process should have the following steps included:  1) Establish supply chain objectives, and 2) Formulate supply chain strategy accordingly.

 

  1.  Step three in the design process is to determine and evaluate the various alternatives. Step four encourages the organization to do what?

 

Choose one of the following:

 

A.    To make decisions that will restructure relationships with external resources.

B.     Make a choice from the alternatives to establish the overall supply chain structure.

C.     Determine why the current suppliers were put into place.

D.    Renegotiate with current suppliers to change the overall supply chain structure.


Answer: B

 

Explanation: The design process should have the following steps included:

1)      Establish supply chain objectives, 2) Formulate supply chain strategy accordingly, 3) Determine and evaluate the various alternatives, and 4) Make a choice from the alternatives for establish the overall supply china structure.

 

  1.  The fifth step in the supply chain design process is to determine who is to be included in the structure, and determine the alternatives available to them.  It is also to:

 

Choose one of the following:

 

A.    Determine who the right members are for the organization.

B.     Determine what strategies need to be put in place for restricting the organization as a whole.

C.     Evaluate and select the right members for further development.

D.    Make adjustments to the internal organization.

 

Answer: C

 

Explanation: The design process should have the following steps included:

1) Establish supply chain objectives, 2) Formulate supply chain strategy accordingly, 3) Determine and evaluate the various alternatives, 4)  Make a choice from the alternatives for establish the overall supply china structure, and 5) Determine who is to be included in the structure, and determine the alternatives available for them.

 

  1.  The last and final step of the design process, is to measure performance and to make:

Choose one of the following:

 

A.    Adjustments to strategies accordingly.

B.     Measure accountability by heads of the organization.

C.     Measure the activity between managers and their staff.

D.    Measure performance along with strengths and weaknesses according to the department each employee works in.


Answer: A

 

Explanation: The design process should have the following steps included: 1) Establish supply chain objectives, 2) Formulate supply chain strategy accordingly, 3)  Determine and evaluate the various alternatives, 4)  Make a choice from the alternatives for establish the overall supply china structure, 5)  Determine who is to be included in the structure, and determine the alternatives available for them, and 6) Evaluate and select the right members for further “development”.

 Measure performance and make adjustment to strategies accordingly.

 

  1.  Management must consider the following factors when making choices. Factors to be considered include:

 

Choose one of the following:

 

A.    Market coverage objectives, Time of delivery, Quantity of product available, and Distribution of the product.

B.     Time of delivery, Target markets, Varieties of products available, and Speed of return phone calls.

C.     Market coverage objectives, Type of distribution, Supply chain structure, and Degree of control expected.

D.    Degree of orders received, leverage in marketing, Type of distribution, and Degree of control expected.


Answer: C

 

Explanation: Management must consider the following factors when making choices. Factors to be considered include: 1)  Market coverage objectives, 2)  Type of distribution, 3)  Supply chain structure, and 4) Degree of control expected.

 

  1.  Distribution plays an important role in this process.  When thinking about distribution, what issues come to mind?

 

Choose one of the following:

 

A.    Number of companies that buy from your organization.

B.     Breaking into new markets, transport times and price.

C.     External purchasers, perishability, and delivery.

D.    Product perishability, timeliness of service, etc.

 

Answer: D

 

Explanation: Distribution plays an important role here. Think about these: product perish -ability, timeliness of service …etc.

 

  1.  You may find needs of reengineering the key supply chain processes to meet the changing market needs. Typical reengineering consists of:

 

Choose one of the following:

 

A.    Finding facts, interviewing potential external customers, spending more on advertising and marketing.

B.     Finding facts, indentifying areas of improvement, making improvements creatively.

C.     Inquiring on the facts with different buyers, initiating relationships with new buyers, and sealing the deal.

D.    Indentifying areas of improvement, developing strategies with internal buyers, and repackaging current products.

 

Answer: B

 

Explanation: You may find needs of reengineering the key supply chain processes to meet the changing market needs. Typical reengineering in this regard typically includes the stages of:

1) Finding facts -> separate facts from opinions!, 2)  Identifying the areas of improvement

3) Making improvement creatively.

 

  1.  This would be considered an effort which supposes to connect and invigorate enterprises and suppliers. What is this called?

 

Choose one of the following:

 

A.    Supply chain collaboration.

B.     Supply chain regulation.

C.     Supply chain streamlining.

D.    Supply chain synchronization.

 

Answer: A

 

Explanation: Supply-chain collaboration is an effort which supposes to connect and invigorate enterprises and suppliers.

 

  1.  This refers to multiform operational integration across the supply chain. What is this called?

 

Choose one of the following:

 

A.    Supply chain reform.

B.     Supply chain regulations.

C.     Supply chain synchronization.

D.    Supply chain system operations.


Answer: C

 

Explanation: Supply Chain Synchronization refers to multiform operational

integration across the supply chain.

 

  1.  What one thing is an absolute must in your organization,  in order for your chain to run efficiently?

 

Choose one of the following:

 

A.    Financial stability in all departments.

B.     Good management in all departments.

C.     Growth and expansion in all departments.

D.    Collaboration.

 

Answer: D

 

Explanation: In fact, collaboration is a MUST for your chain to run efficiently.

 

  1.  Such effort is usually implemented by doing two things: One is to share information, the other is to:

 

Choose one of the following:

 

A.    Sharing accesses to systems.

B.     Sharing passwords.

C.     Sharing departmental updates and records.

D.    Sharing Team Meeting information and new strategies for management.

 

Answer: A

 

Explanation: In fact, collaboration is a MUST for your chain to run efficiently. Such effort is usually implemented by sharing information and even system accesses between the chain partners.

 

  1.  How does an enterprise create the potential for substantial operational efficiencies cross the supply chain?

 

Choose one of the following:

 

A.    When an enterprise calls on suggestions from its suppliers.

B.     When an enterprise opens up its internal systems to its suppliers.

C.     When an enterprise closes its internal systems to its suppliers.

D.    When an enterprise collaborates with other enterprises about their suppliers.

 

Answer: B

 

Explanation: “When an enterprise opens its internal systems to its suppliers, it creates the potential for substantial operational efficiencies.

across the supply chain.

 

  1.  While creating the potential for substantial operational efficiencies is good, what potential challenge could it create?

 

Choose one of the following:

 

A.    Subjecting your enterprise to higher prices on products that are necessary for your enterprise to run to efficiently.

B.     Raising the stakes from your competitors so high that they override your business and you take a loss.

C.     Raises online stakes, making it necessary to have high quality systems that are secure from unauthorized users.

D.    Inability to create good profit margins, due to the expenses for new systems.

 

Answer: C

 

Explanation: When an enterprise opens its internal systems to its suppliers, it creates the potential for substantial operational efficiencies across the supply chain. But it also raises the online stakes, creating the need for high-availability systems that are secure from unauthorized users”.

 

  1.  Supply chain management solutions focus on providing more of what feature to all links of the chain?

 

Choose one of the following:

 

A.    Complete communication guidelines.

B.     Design templates for all products along with their cost codes.

C.     A collaborative effort on transport of products.

D.    More real-time data from all links of the chain.

 

Answer: D

 

Explanation: Supply chain management solutions focus on providing more real-time data from all links of the chain.

 

  1.  The supply chain management solutions often span an enterprises’ communication with suppliers. What is often the critical component?

 

Choose one of the following:

 

A.    Advertisement campaigns and their return on investment.

B.     Product design collaboration.

C.     Cost analysis and budgetary concerns.

D.    Pulling results of last year’s advertisement campaign results.

 

Answer: B

 

Explanation: These solutions often span an enterprise's communication with suppliers, and product design collaboration is often the critical component.

 

  1.  Using this tool, your chain partners can figure out exactly the items you need you need as soon as you aware. This tool is known as:

 

Choose one of the following:

 

A.    Supply chain visibility, using real-time data transport.

B.     Supply and demand reports, using real-time data transport.

C.     External merchandising and reports on return on investment.

D.    Internal processing systems and auditing the sales department.

 

Answer: A

 

Explanation: With Supply Chain Visibility, through real time data transport your

chain partners can figure out exactly the items that you need as soon as you are aware.

 

  1.  Through increased visibility, customer satisfaction can be greatly improved by allowing the customers to do what?

 

Choose one of the following:

 

A.    By allowing customers to do an online chat with a customer service representative.

B.     By allowing customers to see exactly how many of each and every item you have in stock.

C.     By allowing customers to track their order from the time they placed it.

D.    By allowing customers to see where else they can find the product, and also the competitors who carry the same thing.

 

Answer: C

 

Explanation: Through increased visibility customer satisfaction can also be vastly improved by allowing customers to track their orders from the moment they were submitted.

 

  1.  In summation, of all the things we have covered so far, what is the one thing that can significantly enhance supply chain visibility?

 

Choose one of the following:

 

A.    Effectively developing partnerships.

B.     Effective collaboration.

C.     Meetings amongst all of those who are connected to this enterprise, so that their ideas can be brought to the table.

D.    An intricate online computer system that runs the inventory for each and every chain.

 

Answer: B

 

Explanation: Effective collaboration can significantly enhance supply chain visibility.

 

  1.  The technical methods of collaboration among chain partners often involve the use of modern technologies like:

 

Choose one of the following:

 

A.    Ecommerce, Ethernet, and Extranet.

B.     Internet, Accounting Software, Ecommerce.

C.     Ecommerce, Intranet and Extranet.

D.    Word Press, Interspatial Technologies, and Intranet.


Answer: C

 

Explanation: The technical methods of collaboration among chain partners often involve the use of modern technologies like Ecommerce, Internet and Extranet.

 

  1.  The word Ecommerce is used a lot these days to refer to new methods of doing business online.  What does Ecommerce stand for?

 

Choose one of the following:

 

A.    Existential commerce.

B.     Extensive business relationships through commerce,  and outside decision makers.

C.     Electronic commerce.

D.    Encompassing commerce outside of what happens in the physical structure of an enterprise.

 

Answer: C

 

Explanation: Short for electronic commerce, ecommerce is the buying and selling of goods and services on the Internet.

 

  1.  In reference to the term e-commerce, what term can it be used interchangeably with?

 

Choose one of the following:

 

A.    E-business.

B.     E-service.

C.     E-review for businesses.

D.    E-customer service.

 

Answer: A

 

Explanation: Short for electronic commerce, ecommerce is the buying and selling of goods and services on the Internet. In practice, this term and the term “e-business” are often used interchangeably.