APICS CPIM Exam 1 Questions
and Answers Updated 2026
ABCAclassificationA-
AAnswerAProcessAofAclassifyingAitemsAinAdescendingAorderAbasedAonAannualAdollarAvolumeAorAsom
eAotherAcriteria.ATheAlistAisAthenAsplitAintoA3AclassesA-AA,AB,AandAC.AAArepresentsA10-
20%AofAitemsAbutA50-
70%AofAdollarAvolume;ABArepresentsA20%AofAitemsAandA20%AofAdollarAvolume;ACArepresentsA60-
70%AofAitemsAbutA10-
30%AofAdollarAvolume.AThisAprincipleAstatesAthatAeffortAandAmoneyAcanAbeAsavedAbyAapplyingAloo
serAcontrolsAtoAtheAlowAdollarAvolumeAitemsA(CAclass)AthanAtheAhigherAdollarAvolumeAitemsA(AA&A
BAclasses)AandAappliesAtoAinventory,Apurchasing,Asales,Aetc.
AdvanceAshipAnoticeA(ASN)A-
AAnswerAElectronicAdataAinterchangeA(EDI)AnotificationAofAshipmentAofAgoods
AndonA-
AAnswerAElectronicAboardAthatAprovidesAvisibilityAofAfloorAstatusAandAgivesAinfoAtoAhelpAcoordinate
AeffortsAlinkedAtoAworkAcenters;AgreenAlightA=Arunning,AredAlightA=Astop,AyellowAlightA=Aneeds
Aattention
AnticipationAinventoriesA-
AAnswerAAnyAadditionalAinventoryAaboveAbasicApipelineAstockAtoAcoverAprojectedAtrendsAofAincreas
edAsales,AplannedApromoAprograms,AseasonalAfluctuation,AplantAshutdowns,AandAvacations
Assemble-2-orderA-
AAnswerAProductionAenvironmentAwhereAaAgoodAorAserviceAcanAbeAassembledAafterAreceiptAofAaAc
ustomer'sAorder.ATheAkeyAcomponentsA(orAingredients)AusedAinAassemblyAorAfinishingAprocessAareA
plannedAandAstockedAinAanticipationAofAaAcustomerAorder.AReceiptAofAorderAinitiatesAassemblyAofAt
heAcustomizedAproduct.AUsefulAstrategyAwhenAaAlargeAnumberAofAendAproductsAcanAbeAassembledA
fromAcommonAcomponents
AvailableAinventoryA-AAnswerAOn-
handAinventoryAbalanceAminusAallocations,Areservations,Abackorders,AandAquantitiesAheldAforAquality
Aproblems
,BackflushA-
AAnswerAMethodAofAinventoryAbookkeepingAwhereAtheAbookAinventoryAisAautomaticallyAreducedAaft
erAcompletionAofAactivityAonAcomponent'sAupper-
levelAparentAitemAbasedAonAwhatAshouldAhaveAbeenAusedAasAspecifiedAonAtheABOMAandAallocation
Arecords;AdisadvantageAisAdifferenceAbetweenAbookAinventoryAandAphysicalAOHAinventory
BackhaulingA-
AAnswerAProcessAofAtransportationAreturningAfromAoriginalAdestinationApointAtoApointAofAorigin;Acan
AbeAfull,Apartial,AorAemptyAload
BacklogA-AAnswerAAllAcustomerAordersAreceivedAbutAnotAyetAshippedA(openAordersAorAorderAboard)
BackorderA-
AAnswerAUnfulfilledAcustomerAorderAorAcommitment.AAnAimmediateA(orApastAdue)AdemandAagainstA
anAitemAwhoseAinventoryAisAinsufficientAtoAsatisfyAtheAdemand
BackAschedulingA-
AAnswerATechniqueAforAcalculatingAoperationAstartAdatesAandAdueAdates;AstartAwithAorderAdueAdate
AandAworkAbackwardsAtoAcalculateArequiredAstartAdateAand/orAdueAdatesAforAeachAoperation
BatchA-
AAnswerAQtyAscheduledAtoAbeAproducedAorAinAproduction;AtypeAofAmfgAprocessAusedAtoAproduceAit
emsAwithAsimilarAdesignsA&AcoverAwideArangeAofAorderAvolumes;AitemsAorderedAareAofAaArepeatA
nature
BillAofAladingA-
AAnswerADocumentAissuedAbyAaAcarrierAwhichAdetailsAaAshipmentAofAmerchandiseAandAgivesAtitleA
ofAthatAshipmentAtoAaAspecifiedAparty.
BillAofAmaterialA(BOM)A-
AAnswerAListingAofAallAtheAsubassemblies,Aintermediates,Aparts,AandArawAmaterialsAthatAgoAintoAa
AparentAassemblyAshowingAtheAquantityAofAeachArequiredAtoAmakeAanAassembly;AusedAinAconjuncti
onAwithAtheAmasterAproductionAscheduleAtoAdetermineAtheAitemsAforAwhichApurchaseArequisitionsAa
ndAproductionAordersAmustAbeAreleased;AlistAofAallAtheAmaterialsAneededAtoAmakeAoneAproductionA
runAofAaAproduct,AbyAaAcontractAmanufacturer,AofApieceAparts/componentsAforAitsAcustomers
, BondedAwarehouseA-
AAnswerABuildingsAorApartsAofAaAbuildingAdesignatedAbyASecAofATreasuryAforAstoringAimportedAgoo
ds,AoperatedAunderAsupervisionAofAUSACustoms
BottleneckA-
AAnswerAFacility,Afunction,Adepartment,AorAresourceAwhoseAcapacityAisAlessAthanAtheAdemandAplace
dAuponAit;AmachineAorAworkAcenter
Break-bulkA-
AAnswerADividingAtruckloadsAofAsimilarAitemsAintoAsmaller,AmoreAappropriateAqty'sAforAuse
BufferA-AAnswerAQtyAofAmaterialsAawaitingAfurtherAprocessing;AcanAreferAtoArawAmaterials,Asemi-
finishedAstoresAorAholdApoints,AorAaAworkAbacklogAthatAisApurposelyAmaintainedAbehindAaAworkAce
nter;AinATOC,AitAcanAbeAtimeAorAmaterialAandAsupportAthruputAand/orAdueAdateAperformanceAmaint
ainedAatAtheAconstraint,AconvergentApointsA(withAaAconstraintApart),AdivergentApoints,AandAshipping
Apoints
BufferAmanagementA-
AAnswerAInATOC,AprocessAwhereAallAexpeditingAinAaAshopAisAdrivenAbyAwhatAisAscheduledAtoAbeAi
nAtheAbuffersA(constraint,Ashipping,AorAassembly);AbyAexpeditingAintoAbuffers,AsystemAavoidsAidlene
ssAatAtheAconstraintAandApreventsAmissedAdueAdate
BusinessAplanA-AAnswerAStatementAofAlong-
rangeAstrategyAandArevenue,Acost,AandAprofitAobjectivesAusuallyAaccompaniedAbyAbudgets,AaAprojec
tedAbalanceAsheet,AandAaAcashAflowA(sourceAandAapplicationAofAfunds)Astatement;AdocumentAconsisti
ngAofAtheAbusinessAdetailsA(organization,Astrategy,AandAfinancingAtactics)
Capable-2-promiseA-
AAnswerAProcessAofAcommittingAordersAagainstAavailableAcapacityAasAwellAasAinventory.AMayAinvol
veAmultipleAmanufacturingAorAdistributionAsites.AUsedAtoAdetermineAwhenAaAnewAorAunscheduledAc
ustomerAorderAcanAbeAdelivered.AEmploysAaAfinite-
schedulingAmodelAofAmanufacturingAsystemAtoAdetermineAwhenAanAitemAcanAbeAdelivered.AIncludes
AanyAconstraintsAthatAmightArestrictAproduction,AsuchAasAavailabilityAofAresources,AleadAtimesAforAr
awAmaterialsAorApurchasedAparts,AandArequirementsAforAlower-
levelAcomponentsAorAsubassemblies.ATheAresultingAdeliveryAdateAtakesAintoAconsiderationAproductio
and Answers Updated 2026
ABCAclassificationA-
AAnswerAProcessAofAclassifyingAitemsAinAdescendingAorderAbasedAonAannualAdollarAvolumeAorAsom
eAotherAcriteria.ATheAlistAisAthenAsplitAintoA3AclassesA-AA,AB,AandAC.AAArepresentsA10-
20%AofAitemsAbutA50-
70%AofAdollarAvolume;ABArepresentsA20%AofAitemsAandA20%AofAdollarAvolume;ACArepresentsA60-
70%AofAitemsAbutA10-
30%AofAdollarAvolume.AThisAprincipleAstatesAthatAeffortAandAmoneyAcanAbeAsavedAbyAapplyingAloo
serAcontrolsAtoAtheAlowAdollarAvolumeAitemsA(CAclass)AthanAtheAhigherAdollarAvolumeAitemsA(AA&A
BAclasses)AandAappliesAtoAinventory,Apurchasing,Asales,Aetc.
AdvanceAshipAnoticeA(ASN)A-
AAnswerAElectronicAdataAinterchangeA(EDI)AnotificationAofAshipmentAofAgoods
AndonA-
AAnswerAElectronicAboardAthatAprovidesAvisibilityAofAfloorAstatusAandAgivesAinfoAtoAhelpAcoordinate
AeffortsAlinkedAtoAworkAcenters;AgreenAlightA=Arunning,AredAlightA=Astop,AyellowAlightA=Aneeds
Aattention
AnticipationAinventoriesA-
AAnswerAAnyAadditionalAinventoryAaboveAbasicApipelineAstockAtoAcoverAprojectedAtrendsAofAincreas
edAsales,AplannedApromoAprograms,AseasonalAfluctuation,AplantAshutdowns,AandAvacations
Assemble-2-orderA-
AAnswerAProductionAenvironmentAwhereAaAgoodAorAserviceAcanAbeAassembledAafterAreceiptAofAaAc
ustomer'sAorder.ATheAkeyAcomponentsA(orAingredients)AusedAinAassemblyAorAfinishingAprocessAareA
plannedAandAstockedAinAanticipationAofAaAcustomerAorder.AReceiptAofAorderAinitiatesAassemblyAofAt
heAcustomizedAproduct.AUsefulAstrategyAwhenAaAlargeAnumberAofAendAproductsAcanAbeAassembledA
fromAcommonAcomponents
AvailableAinventoryA-AAnswerAOn-
handAinventoryAbalanceAminusAallocations,Areservations,Abackorders,AandAquantitiesAheldAforAquality
Aproblems
,BackflushA-
AAnswerAMethodAofAinventoryAbookkeepingAwhereAtheAbookAinventoryAisAautomaticallyAreducedAaft
erAcompletionAofAactivityAonAcomponent'sAupper-
levelAparentAitemAbasedAonAwhatAshouldAhaveAbeenAusedAasAspecifiedAonAtheABOMAandAallocation
Arecords;AdisadvantageAisAdifferenceAbetweenAbookAinventoryAandAphysicalAOHAinventory
BackhaulingA-
AAnswerAProcessAofAtransportationAreturningAfromAoriginalAdestinationApointAtoApointAofAorigin;Acan
AbeAfull,Apartial,AorAemptyAload
BacklogA-AAnswerAAllAcustomerAordersAreceivedAbutAnotAyetAshippedA(openAordersAorAorderAboard)
BackorderA-
AAnswerAUnfulfilledAcustomerAorderAorAcommitment.AAnAimmediateA(orApastAdue)AdemandAagainstA
anAitemAwhoseAinventoryAisAinsufficientAtoAsatisfyAtheAdemand
BackAschedulingA-
AAnswerATechniqueAforAcalculatingAoperationAstartAdatesAandAdueAdates;AstartAwithAorderAdueAdate
AandAworkAbackwardsAtoAcalculateArequiredAstartAdateAand/orAdueAdatesAforAeachAoperation
BatchA-
AAnswerAQtyAscheduledAtoAbeAproducedAorAinAproduction;AtypeAofAmfgAprocessAusedAtoAproduceAit
emsAwithAsimilarAdesignsA&AcoverAwideArangeAofAorderAvolumes;AitemsAorderedAareAofAaArepeatA
nature
BillAofAladingA-
AAnswerADocumentAissuedAbyAaAcarrierAwhichAdetailsAaAshipmentAofAmerchandiseAandAgivesAtitleA
ofAthatAshipmentAtoAaAspecifiedAparty.
BillAofAmaterialA(BOM)A-
AAnswerAListingAofAallAtheAsubassemblies,Aintermediates,Aparts,AandArawAmaterialsAthatAgoAintoAa
AparentAassemblyAshowingAtheAquantityAofAeachArequiredAtoAmakeAanAassembly;AusedAinAconjuncti
onAwithAtheAmasterAproductionAscheduleAtoAdetermineAtheAitemsAforAwhichApurchaseArequisitionsAa
ndAproductionAordersAmustAbeAreleased;AlistAofAallAtheAmaterialsAneededAtoAmakeAoneAproductionA
runAofAaAproduct,AbyAaAcontractAmanufacturer,AofApieceAparts/componentsAforAitsAcustomers
, BondedAwarehouseA-
AAnswerABuildingsAorApartsAofAaAbuildingAdesignatedAbyASecAofATreasuryAforAstoringAimportedAgoo
ds,AoperatedAunderAsupervisionAofAUSACustoms
BottleneckA-
AAnswerAFacility,Afunction,Adepartment,AorAresourceAwhoseAcapacityAisAlessAthanAtheAdemandAplace
dAuponAit;AmachineAorAworkAcenter
Break-bulkA-
AAnswerADividingAtruckloadsAofAsimilarAitemsAintoAsmaller,AmoreAappropriateAqty'sAforAuse
BufferA-AAnswerAQtyAofAmaterialsAawaitingAfurtherAprocessing;AcanAreferAtoArawAmaterials,Asemi-
finishedAstoresAorAholdApoints,AorAaAworkAbacklogAthatAisApurposelyAmaintainedAbehindAaAworkAce
nter;AinATOC,AitAcanAbeAtimeAorAmaterialAandAsupportAthruputAand/orAdueAdateAperformanceAmaint
ainedAatAtheAconstraint,AconvergentApointsA(withAaAconstraintApart),AdivergentApoints,AandAshipping
Apoints
BufferAmanagementA-
AAnswerAInATOC,AprocessAwhereAallAexpeditingAinAaAshopAisAdrivenAbyAwhatAisAscheduledAtoAbeAi
nAtheAbuffersA(constraint,Ashipping,AorAassembly);AbyAexpeditingAintoAbuffers,AsystemAavoidsAidlene
ssAatAtheAconstraintAandApreventsAmissedAdueAdate
BusinessAplanA-AAnswerAStatementAofAlong-
rangeAstrategyAandArevenue,Acost,AandAprofitAobjectivesAusuallyAaccompaniedAbyAbudgets,AaAprojec
tedAbalanceAsheet,AandAaAcashAflowA(sourceAandAapplicationAofAfunds)Astatement;AdocumentAconsisti
ngAofAtheAbusinessAdetailsA(organization,Astrategy,AandAfinancingAtactics)
Capable-2-promiseA-
AAnswerAProcessAofAcommittingAordersAagainstAavailableAcapacityAasAwellAasAinventory.AMayAinvol
veAmultipleAmanufacturingAorAdistributionAsites.AUsedAtoAdetermineAwhenAaAnewAorAunscheduledAc
ustomerAorderAcanAbeAdelivered.AEmploysAaAfinite-
schedulingAmodelAofAmanufacturingAsystemAtoAdetermineAwhenAanAitemAcanAbeAdelivered.AIncludes
AanyAconstraintsAthatAmightArestrictAproduction,AsuchAasAavailabilityAofAresources,AleadAtimesAforAr
awAmaterialsAorApurchasedAparts,AandArequirementsAforAlower-
levelAcomponentsAorAsubassemblies.ATheAresultingAdeliveryAdateAtakesAintoAconsiderationAproductio