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Exam (elaborations)

CPIM Terminology Questions and Answers 2026

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Exam of 20 pages for the course CPIM - Certified in Production & Inventory Management at CPIM - Certified in Production & Inventory Management (CPIM Terminology)

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CPIM Terminology

ABC Classification - answera ranking system for identifying and grouping items in terms
of how useful they are for achieving business goals

The system requires grouping things into three categories: A - extremely important. B -
moderately important. C - relatively unimportant.

Advanced Planning and Scheduling (APS) - answer manufacturing management
process by which raw materials and production capacity are optimally allocated to meet
demand.

Advance Ship Notice (ASN) - answera notification of pending deliveries, similar to a
packing list. It is usually sent in an electronic format and is a common EDI document

Andon - answera manufacturing term referring to a system to notify management,
maintenance, and other workers of a quality or process problem. The centerpiece is a
device incorporating signal lights to indicate which workstation has the problem.

Anticipation Inventories - answerComponents, material, or goods kept at hand to meet
seasonal fluctuations in demand or to meet the shortfall caused by erratic production

Assemble-To-Order - answerA business production strategy where products ordered by
customers are produced quickly and are customizable to a certain extent; basic parts for
the product are already manufactured but not yet assembled. Once an order is
received, the parts are assembled quickly and sent to the customer

Assembly Line - answermanufacturing process in which parts are added as the semi-
finished assembly moves from work station to work station where the parts are added in
sequence until the final assembly is produced

Assignable Cause - answeran identifiable, specific cause of variation in a given process
or measurement. A cause of variation that is not random and does not occur by chance
is "assignable"

Available Inventory - answer

Available-to-Promise (ATP) - answer

Average Inventory - answer

Back Scheduling - answer

,Backflush - answer

BackHauling - answer

Backlog - answer

Backorder - answer

Balance Sheet - answer

Bar Code - answer

Batch - answer

Batch Picking - answer

Bias - answer

Bill of Lading (uniform) - answer

Bill of Material (BOM) - answer

Bonded Warehouse - answer

Bottleneck - answer

Break-bulk - answer

Break-even point - answer

Buffer - answer

Buffer Management - answer

Bullwhip Effect - answer

Business Plan - answer

Capable-To-Promise (CTP) - answer

Capacity Available - answer

Capacity Management - answer

Capacity Planning - answer

, Capacity Requirements Planning (CRP) - answer

Carrying Cost - answer

Cash Flow - answer

Cause-And-Effect Diagram - answer

Cellular Manufacturing - answer

Centralized Inventory Control - answer

Certified Supplier - answer

Chase Production Methods - answer

Closed-Loop MRP - answer

Common Carrier - answer

Component - answer

Consignment - answer

Constraint - answer

Continuous Process Improvement (CPI) - answer

Continuous Production - answer

Continuous Replenishment - answer

Contract Carrier - answer

Control Chart - answer

Control Limit - answer

Cost of Goods Sold - answer

Cost of Poor Quality - answer

Critical Chain Method - answer

Critical Path Method (CPM) - answer

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