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Exam CSCP topic 1 question 637 discussion

Actual exam question from APICS's CSCP
Question #: 637
Topic #: 1
[All CSCP Questions]

When a company operates in a vendor-managed inventory (VMI) environment, the cash-to-cash cycle time for the buying firm begins when it:

  • A. receives a fulfillment order.
  • B. places a replenishment order.
  • C. processes payment for a replenishment order.
  • D. begins a production order.
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Suggested Answer: B 🗳️

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Rajiv8047
12 months ago
Selected Answer: B
In a vendor-managed inventory (VMI) environment, the cash-to-cash cycle time for the buying firm begins when it places a replenishment order. This is because the vendor is responsible for managing the inventory levels of the buyer, and the buyer only pays for the inventory when it is shipped from the vendor.
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