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| Section | Objectives |
|---|---|
| Topic 1: Inventory and Warehousing | - Inventory Management - Warehousing - Inventory Cost and Availability |
| Topic 2: Supply Chain Management Fundamentals | - Supply Chain Management Concepts and Principles - Integrated Supply Chain Processes - Supply Chain and Organizational Competitiveness - Logistics and Supply Chain Management |
| Topic 3: Transportation and Logistics | - Delivery and Distribution - Transportation Management - Logistics Operations |
| Topic 4: Procurement | - Supplier and Sourcing Management - Procurement Processes - Procurement Strategies |
| Topic 5: Demand Planning and Scheduling | - Production and Supply Scheduling - Demand and Supply Alignment - Demand Planning |
| Topic 6: Manufacturing and Operations Management | - Supply and Production Coordination - Operations Management - Manufacturing Processes |
| Topic 7: Supply Chain Analytics and Artificial Intelligence | - Real-Time Monitoring - Predictive Analytics - Automation and Optimization - Supply Chain Risk Management |
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NEW QUESTION # 38
A graphical plot depicting the level of inventory over time is
Answer: A
Explanation:
An inventory profile is the graphical representation of inventory quantity as it changes over time. It provides a visual picture of replenishment and consumption behavior and is particularly important when analyzing cycle inventory. Under steady demand and periodic replenishment, the profile normally resembles a saw-tooth pattern: inventory increases when a replenishment lot arrives and then progressively declines as demand consumes the stock.
The profile allows supply-chain professionals to examine several operating characteristics, including maximum inventory, minimum inventory, average cycle inventory, replenishment frequency, stockout exposure, and the relationship between lot size and carrying cost. When a replenishment quantity of Q is received and inventory is subsequently depleted at a constant rate, the inventory profile provides the visual basis for deriving average cycle inventory as Q/2.
The alternatives "inventory graph" and "inventory drawing" are generic descriptions rather than the established supply-chain term. "Distribution inventory" refers to inventory positioned within the distribution network rather than to a graphical representation.
Therefore, the defined term for a plot depicting inventory levels over time is inventory profile . This terminology is consistent with standard cycle-inventory treatment used in supply-chain planning.
Reference Topic: Inventory Management - Inventory Profiles, Cycle Inventory, and Replenishment Behavior.
NEW QUESTION # 39
In a CRP system, inventory at the retailer is owned by
Answer: B
Explanation:
Under a Continuous Replenishment Program (CRP) , the retailer normally owns the inventory positioned at the retail location. The defining feature of CRP is not a transfer of inventory ownership to the supplier; it is the use of actual consumption or withdrawal information to trigger frequent, demand-responsive replenishment.
A supplier or wholesaler may therefore have substantial visibility into retailer inventory and may automatically replenish the retailer based on point-of-sale or withdrawal data, while ownership of the stock remains with the retailer. This separates CRP from certain VMI arrangements in which inventory may be held on consignment and remain supplier-owned until final sale.
This distinction is operationally significant. Ownership determines financial responsibility and working- capital exposure , whereas replenishment authority determines who calculates and initiates stock replacement. A supply-chain system may centralize replenishment decisions without necessarily transferring ownership of the underlying inventory.
Option B would more accurately describe a supplier-owned consignment arrangement. Option C is incorrect because the final customer has not yet purchased the inventory, while D is legally and economically untenable for inventory being carried within the commercial supply chain.
Standard supply-chain coordination material explicitly identifies the retailer as the inventory owner in a CRP system.
Reference Topic: Inventory Management - Continuous Replenishment Programs and Inventory Ownership.
NEW QUESTION # 40
When demand is steady, cycle inventory and lot size are related as