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Certified in Production and Inventory Management Questions 116–120 (page: 25)

Updated On: 9-Feb-2026

Which of the following is an advantage of VMI?

  1. Suppliers can leverage better information to reduce inventory levels.
  2. The customer can usually force additional concessions from the VMI supplier
  3. Lead-times are increased
  4. MRP system operating costs decrease

Answer(s): A



Acme Chemical Company has a price order winner, which actions are consistent with this advantage?

  1. chase production strategy, freight consolidation, and kaizan teams
  2. level production strategy,freight consolidation, and SPC
  3. level production strategy, LTL transport, and incoming inspection
  4. combination production strategy, freight consolidation, and incoming inspection

Answer(s): B



ABC Corporation has chosen three projects for implementation this year. They are increased usage of common components, implementation of safety capacity, and integration of ATP logic within customer processes. These actions are most supportive of which order winner?

  1. Innovation
  2. Price/Cost
  3. Delivery Reliability
  4. Image

Answer(s): C



XYZ Company is pursuing improved quality levels. Which of the following actions would produce the best results for XYZ?

  1. Hire additional inspectors
  2. tighten tolerances
  3. adopt a quality first slogan
  4. reduce process variability

Answer(s): D



ABC Company has decided to implement point of use replenishment with a key supplier.
Which action is consistent with this decision?

  1. Establishing a physical area close to the operations that utilize the supplies
  2. Determining the reorder point level for supplies
  3. Establishing ASN notification with the supplier
  4. Agreeing on consignment rules.

Answer(s): A



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