CPIM – Certified in Planning and Inventory
Management Newest 2025- 2026 Updated
Practice Exam | 200 Actual Most Tested
Questions Collections & Verified Detailed
Answers | Tutor Verified Success Exam)
Graded A+
1. A company uses a continuous review inventory system. What triggers a
replenishment order?
A. Periodic review date
B. Demand forecast update
C. Reorder point reached
D. Supplier schedule change
Answer: C ✓
The reorder point is the predefined inventory level that triggers
replenishment in a continuous review system.
2. Which inventory classification method categorizes items based on annual
dollar usage?
A. EOQ
B. ABC analysis
C. Safety stock
D. MRP
Answer: B ✓
• ABC analysis prioritizes items by annual dollar volume, focusing control on
high-value items.*
,3. In MRP, what is the primary output?
A. Demand forecast
B. Purchase requisitions
C. Production schedule
D. Capacity plan
Answer: B ✓
• Material Requirements Planning (MRP) generates planned order releases,
often as purchase requisitions.*
4. Safety stock is primarily used to protect against:
A. High holding costs
B. Demand variability
C. Supplier discounts
D. Overstocking
Answer: B ✓
• Safety stock buffers against uncertainty in demand or lead time,
preventing stockouts.*
5. What does EOQ minimize?
A. Demand variability
B. Ordering and holding costs
C. Lead time
D. Stockouts
Answer: B ✓
The Economic Order Quantity (EOQ) balances ordering costs and holding
costs to find optimal order size.
6. A dependent demand item is best managed using:
A. Forecasting
B. EOQ
C. MRP
D. JIT
Answer: C ✓
,• Dependent demand is calculated using MRP, based on demand for parent
items.*
7. What is the primary purpose of a master production schedule (MPS)?
A. Plan workforce
B. Detail raw material purchases
C. Define end-item production quantities
D. Calculate safety stock
Answer: C ✓
The MPS specifies what end items to produce and when.
8. Which lot-sizing technique produces the lowest inventory levels?
A. EOQ
B. Fixed order quantity
C. Lot-for-lot
D. Period order quantity
Answer: C ✓
• Lot-for-lot (L4L) orders exactly what is needed, minimizing inventory
holding.*
9. A company experiences frequent stockouts despite high inventory levels.
What is the likely cause?
A. Excess safety stock
B. Poor demand forecasting
C. Low ordering costs
D. Short lead times
Answer: B ✓
Inaccurate forecasting leads to mismatched inventory and demand,
causing stockouts.
10.Lead time in inventory management refers to:
A. Production time only
B. Time from order to receipt
C. Supplier evaluation period
, D. Forecast horizon
Answer: B ✓
• Lead time is the total time from placing an order to receiving it.*
11.What does “available-to-promise” (ATP) represent?
A. Inventory on hand
B. Production capacity
C. Uncommitted inventory
D. Forecast accuracy
Answer: C ✓
• ATP shows inventory not yet allocated to orders, available for new
demand.*
12.Which system is best suited for stable demand and low variability?
A. MRP
B. JIT
C. DRP
D. ERP
Answer: B ✓
• Just-in-Time (JIT) works best in stable, predictable environments.*
13.In forecasting, what does MAD stand for?
A. Mean average deviation
B. Mean absolute deviation
C. Maximum allowable deviation
D. Moving average demand
Answer: B ✓
• Mean Absolute Deviation (MAD) measures forecast error accuracy.*
14.What is the bullwhip effect?
A. Increased production efficiency
B. Demand amplification upstream
C. Inventory reduction
Management Newest 2025- 2026 Updated
Practice Exam | 200 Actual Most Tested
Questions Collections & Verified Detailed
Answers | Tutor Verified Success Exam)
Graded A+
1. A company uses a continuous review inventory system. What triggers a
replenishment order?
A. Periodic review date
B. Demand forecast update
C. Reorder point reached
D. Supplier schedule change
Answer: C ✓
The reorder point is the predefined inventory level that triggers
replenishment in a continuous review system.
2. Which inventory classification method categorizes items based on annual
dollar usage?
A. EOQ
B. ABC analysis
C. Safety stock
D. MRP
Answer: B ✓
• ABC analysis prioritizes items by annual dollar volume, focusing control on
high-value items.*
,3. In MRP, what is the primary output?
A. Demand forecast
B. Purchase requisitions
C. Production schedule
D. Capacity plan
Answer: B ✓
• Material Requirements Planning (MRP) generates planned order releases,
often as purchase requisitions.*
4. Safety stock is primarily used to protect against:
A. High holding costs
B. Demand variability
C. Supplier discounts
D. Overstocking
Answer: B ✓
• Safety stock buffers against uncertainty in demand or lead time,
preventing stockouts.*
5. What does EOQ minimize?
A. Demand variability
B. Ordering and holding costs
C. Lead time
D. Stockouts
Answer: B ✓
The Economic Order Quantity (EOQ) balances ordering costs and holding
costs to find optimal order size.
6. A dependent demand item is best managed using:
A. Forecasting
B. EOQ
C. MRP
D. JIT
Answer: C ✓
,• Dependent demand is calculated using MRP, based on demand for parent
items.*
7. What is the primary purpose of a master production schedule (MPS)?
A. Plan workforce
B. Detail raw material purchases
C. Define end-item production quantities
D. Calculate safety stock
Answer: C ✓
The MPS specifies what end items to produce and when.
8. Which lot-sizing technique produces the lowest inventory levels?
A. EOQ
B. Fixed order quantity
C. Lot-for-lot
D. Period order quantity
Answer: C ✓
• Lot-for-lot (L4L) orders exactly what is needed, minimizing inventory
holding.*
9. A company experiences frequent stockouts despite high inventory levels.
What is the likely cause?
A. Excess safety stock
B. Poor demand forecasting
C. Low ordering costs
D. Short lead times
Answer: B ✓
Inaccurate forecasting leads to mismatched inventory and demand,
causing stockouts.
10.Lead time in inventory management refers to:
A. Production time only
B. Time from order to receipt
C. Supplier evaluation period
, D. Forecast horizon
Answer: B ✓
• Lead time is the total time from placing an order to receiving it.*
11.What does “available-to-promise” (ATP) represent?
A. Inventory on hand
B. Production capacity
C. Uncommitted inventory
D. Forecast accuracy
Answer: C ✓
• ATP shows inventory not yet allocated to orders, available for new
demand.*
12.Which system is best suited for stable demand and low variability?
A. MRP
B. JIT
C. DRP
D. ERP
Answer: B ✓
• Just-in-Time (JIT) works best in stable, predictable environments.*
13.In forecasting, what does MAD stand for?
A. Mean average deviation
B. Mean absolute deviation
C. Maximum allowable deviation
D. Moving average demand
Answer: B ✓
• Mean Absolute Deviation (MAD) measures forecast error accuracy.*
14.What is the bullwhip effect?
A. Increased production efficiency
B. Demand amplification upstream
C. Inventory reduction
