CPIM Practice Exam

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Prepare for the CPIM Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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What does continuous replenishment entail?

Daily notification of sales for inventory replenishment
Weekly audits of stock levels
Monthly supplier reviews
Quarterly inventory assessments

The correct answer is: Daily notification of sales for inventory replenishment

Continuous replenishment refers to a supply chain strategy in which inventory is restocked frequently based on real-time demand signals. This approach allows for a more responsive inventory management system that can adjust to fluctuations in sales and reduce stockouts or excess inventory. The correct answer highlights the aspect of consistently monitoring sales on a daily basis to inform inventory replenishment decisions. By receiving daily notifications of sales, organizations can ensure that their stock levels are appropriately adjusted to meet current demand, which leads to improved customer satisfaction and operational efficiency. In contrast, the other options – weekly audits, monthly supplier reviews, and quarterly assessments – do not embody the principles of continuous replenishment. Auditing and reviewing schedules that are less frequent than daily do not offer the necessary responsiveness required to maintain optimal stock levels in a dynamic market environment.