CPSM INTE Syllabus Exam Questions Answers

With a gross requirement of 100 units and an open order for 55 units, 45 additional units are needed. Given the lot size of 30 units, the exception report would indicate ordering 45 units to meet the requirements.

Consignment refers to an agreement where vendor-owned inventory is stored on the buyer's premises until it is used. The supplier retains ownership until the items are consumed, reducing the buyer's upfront inventory costs and risks associated with holding stock.

For perishable goods, the balance between customer service and stockouts is crucial. Excess inventory leads to waste, while stockouts can harm customer satisfaction. The sourcing manager must carefully analyze demand patterns, inventory turnover, and customer expectations to optimize stocking levels. This consideration is supported by logistics and inventory management best practices, focusing on perishables and consumer satisfaction metrics.

Option B's process flow indicates that the final inventory (triangle) occurs after the second processing stage, suggesting a strategy of delayed differentiation. This approach allows customization or final product adjustments to occur closer to the point of customer delivery, reducing lead time for specific customer requirements and minimizing excess inventory of finished goods. Reference: Lean manufacturing and supply chain strategies.