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 is required for continuous replenishment to be effective?

Monthly supplier evaluations
Daily sales notifications
Weekly inventory counts
Annual supplier contracts

The correct answer is: Daily sales notifications

The requirement for continuous replenishment to be effective is daily sales notifications. This approach is rooted in the need for real-time visibility of sales data to manage inventory levels dynamically. By receiving daily sales notifications, a business can promptly respond to changes in demand, ensuring that inventory is replenished in a timely manner to avoid stockouts or excess inventory. This process relies on accurate and frequent data to maintain alignment between supply and demand. Having updated information about what is selling allows for quicker adjustments in orders to suppliers, facilitating a more responsive and efficient supply chain. This is a key component of continuous replenishment systems, making it essential for their success in optimizing inventory management and meeting customer needs effectively.