CPIM Practice Exam

What is a major objective of materials management?

1. Providing equitable employment.

2. Ensuring high customer service levels.

3. Minimizing inventory turns.

4. Offering management cost information.

The correct answer is: Ensuring high customer service levels.

A major objective of materials management is to ensure high customer service levels. This is integral to meeting customer demands and maintaining competitive advantage in the market. When materials management is effectively executed, it ensures that the right materials are available in the right quantities at the right time, which directly contributes to fulfilling customer orders promptly and efficiently. High customer service levels enhance customer satisfaction and loyalty, which are vital for business success. An efficient materials management system allows companies to optimize their supply chain operations, aligning inventory levels with customer requirements, thereby reducing lead times and preventing stockouts that could disappoint customers. While providing equitable employment, minimizing inventory turns, and offering management cost information are important considerations within a broader operational context, they do not directly target the essential goal of fulfilling customer needs and maintaining service levels that are paramount in materials management.