CPIM Module 2 I
A company has multiple distribution centers with different levels of technology. Which of
the following actions is the same whether automated or manual storage systems are
used?
Transport of pallets to the storage area
Picking of items to fill orders
Selection of storage location at receiving
Update of receipt to the inventory system - answer Update of receipt to the inventory
system
The distribution and procurement functions are working together to coordinate incoming
shipments. This action will most likely improve the management of:
transportation costs.
supplier quality.
inventory levels.
stock outs. - answer transportation costs.
Coordinating the transportation of both incoming materials from suppliers and
shipments between warehouses and distribution centers can lower transportation costs.
Using the distribution requirements planning information provided below, what periods
of the master production schedule would have net requirements?
On-hand = 25 units, safety stock = 15 units, shipping quantity = 50 units, transit time = 1
week
Periods 1, 3, and 4
Periods 1, 3, and 5
Periods 2, 4, and 5
Periods 3 and 5 - answerPeriods 2, 4, and 5
On-hand = 25 units, safety stock = 15 units, shipping quantity = 50 units, transit time = 1
week
Net Requirements = Forecast + Safety Stock - Prior Projected Available Balance (or
On-Hand) - In Transit.
Using this method, there are no net requirements if the result is zero or less.
There are other ways to arrive at the same answer.
Period 2: 40 + 15 - 50 - 0 = 5
Period 4: 45 + 15 - 15 - 0 = 45
Period 5: 45 + 15 - 20 - 0 = 40
A planned shipment is placed whenever there is a net requirement. Note that the
planned shipments correspond to planned order receipts and the shipment releases
, correspond to planned order releases. Planned shipment releases would be offset by
the shipping time of one week to meet the master production schedule.
Using the information provided below, which warehouses will be placing orders if the
forecast is consumed by orders at the warehouses?
X, Y, Z
X, Y, Z, Central
X, Z
X, Z, Central - answerX, Z, Central
X and Z will have reached their reorder point, so orders will be placed on the central
warehouse. This will cause the central warehouse to reach its reorder point.
A store orders and receives weekly shipments, made up of 20 line items, from a
distributor. Which customer service measure is of most value to the store?
On-time shipment
Transportation costs
Line items shipped complete
Correct items shipped - answerLine items shipped complete
Which efficiency measurement is applied to distribution for calculating capacity?
Number of order lines picked vs. standard for number of order lines to be picked
Number of pallets received vs. number of pallets shipped
Number of trucks that have been unloaded
Number of trucks that have been loaded - answerNumber of order lines picked vs.
standard for number of order lines to be picked
In distribution, the standard measure of order lines picked would be compared to the
actual order lines picked.
What is a potential area of risk for distribution inventory?
Being located near other distribution centers
Running out of warehouse space
Need to relocate inventory based on poor planning
Not having enough trained personnel - answerNeed to relocate inventory based on poor
planning
A high-volume, low-cost retail customer has the ability to report daily sales to all
suppliers by supplier SKU. Which of the following is true of this situation?
The suppliers should use this information to plan monthly shipments back to the retailer.
The retailer should be prepared to warehouse lots of inventory brought to it by its
suppliers.
The suppliers should quickly reveal this detail to all of their suppliers.
A company has multiple distribution centers with different levels of technology. Which of
the following actions is the same whether automated or manual storage systems are
used?
Transport of pallets to the storage area
Picking of items to fill orders
Selection of storage location at receiving
Update of receipt to the inventory system - answer Update of receipt to the inventory
system
The distribution and procurement functions are working together to coordinate incoming
shipments. This action will most likely improve the management of:
transportation costs.
supplier quality.
inventory levels.
stock outs. - answer transportation costs.
Coordinating the transportation of both incoming materials from suppliers and
shipments between warehouses and distribution centers can lower transportation costs.
Using the distribution requirements planning information provided below, what periods
of the master production schedule would have net requirements?
On-hand = 25 units, safety stock = 15 units, shipping quantity = 50 units, transit time = 1
week
Periods 1, 3, and 4
Periods 1, 3, and 5
Periods 2, 4, and 5
Periods 3 and 5 - answerPeriods 2, 4, and 5
On-hand = 25 units, safety stock = 15 units, shipping quantity = 50 units, transit time = 1
week
Net Requirements = Forecast + Safety Stock - Prior Projected Available Balance (or
On-Hand) - In Transit.
Using this method, there are no net requirements if the result is zero or less.
There are other ways to arrive at the same answer.
Period 2: 40 + 15 - 50 - 0 = 5
Period 4: 45 + 15 - 15 - 0 = 45
Period 5: 45 + 15 - 20 - 0 = 40
A planned shipment is placed whenever there is a net requirement. Note that the
planned shipments correspond to planned order receipts and the shipment releases
, correspond to planned order releases. Planned shipment releases would be offset by
the shipping time of one week to meet the master production schedule.
Using the information provided below, which warehouses will be placing orders if the
forecast is consumed by orders at the warehouses?
X, Y, Z
X, Y, Z, Central
X, Z
X, Z, Central - answerX, Z, Central
X and Z will have reached their reorder point, so orders will be placed on the central
warehouse. This will cause the central warehouse to reach its reorder point.
A store orders and receives weekly shipments, made up of 20 line items, from a
distributor. Which customer service measure is of most value to the store?
On-time shipment
Transportation costs
Line items shipped complete
Correct items shipped - answerLine items shipped complete
Which efficiency measurement is applied to distribution for calculating capacity?
Number of order lines picked vs. standard for number of order lines to be picked
Number of pallets received vs. number of pallets shipped
Number of trucks that have been unloaded
Number of trucks that have been loaded - answerNumber of order lines picked vs.
standard for number of order lines to be picked
In distribution, the standard measure of order lines picked would be compared to the
actual order lines picked.
What is a potential area of risk for distribution inventory?
Being located near other distribution centers
Running out of warehouse space
Need to relocate inventory based on poor planning
Not having enough trained personnel - answerNeed to relocate inventory based on poor
planning
A high-volume, low-cost retail customer has the ability to report daily sales to all
suppliers by supplier SKU. Which of the following is true of this situation?
The suppliers should use this information to plan monthly shipments back to the retailer.
The retailer should be prepared to warehouse lots of inventory brought to it by its
suppliers.
The suppliers should quickly reveal this detail to all of their suppliers.
