Certified Supply Chain Professional (CSCP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Supply Chain Professional (CSCP) Exam with an interactive quiz that assesses your knowledge through flashcards and multiple-choice questions. Each question includes hints and detailed explanations to reinforce your learning and help you get ready for the test.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the purpose of demand driven material requirements planning (DDMRP)?

To increase lead times by reducing inventory levels
To meet only independent demand items
To create buffer inventories for components with longer lead times
To eliminate the need for safety stock

The correct answer is: To create buffer inventories for components with longer lead times

The purpose of demand driven material requirements planning (DDMRP) is centered around the creation of buffer inventories, particularly for components that have longer lead times in manufacturing or supply processes. DDMRP emphasizes the need to manage inventory strategically by positioning buffer stock in key areas throughout the supply chain. This approach allows businesses to respond more flexibly to fluctuations in demand and helps maintain the flow of production despite variations in supply and demand. Buffer inventories are specifically designed to protect against the uncertainty of supply and demand lead times, ensuring that production schedules can be adhered to without unnecessary disruptions. By focusing on components with longer lead times, organizations can mitigate potential delays and improve overall responsiveness to customer needs. In contrast, the other options do not align with the fundamental objectives of DDMRP. For instance, increasing lead times is counterproductive to the intention of DDMRP, which seeks to improve responsiveness. Meeting only independent demand items overlooks the interactions between dependent and independent demand in a comprehensive planning system. Eliminating the need for safety stock entirely is impractical within most supply chain environments, as some level of safety stock is often necessary to buffer against uncertainties. Therefore, establishing buffer inventories for components with longer lead times is the key mechanism through which DDMRP effectively operates.