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Question 86 - CPIM-Part-2 discussion

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Which of the following inventory management techniques is most responsive to changes in demand levels?

A.
Two-bin system
Answers
A.
Two-bin system
B.
Periodic review system
Answers
B.
Periodic review system
C.
Cycle counting
Answers
C.
Cycle counting
D.
ABC classification
Answers
D.
ABC classification
Suggested answer: A

Explanation:

A two-bin system is a type of inventory management technique that uses two containers or bins to store and replenish items. When the first bin is empty, the second bin is used to supply the demand while the first bin is reordered. A two-bin system is most responsive to changes in demand levels because it triggers replenishment orders based on actual consumption rather than fixed time intervals or reorder points. A two-bin system can reduce stockouts, improve service levels, and lower inventory costs.Reference: CPIM Exam Content Manual Version 7.0, Domain 5: Plan and Manage Inventory, Section 5.2: Implement Inventory Plans, Subsection 5.2.3: Describe how to implement inventory replenishment techniques (page 46).

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asked 16/09/2024
Balazs Jarmy
48 questions
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