CPIM QUESTIONS UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Which cost will decrease if order quantity decreases?
Cost of customer service Cost of manufacturing operations Cost of ordering Annual cost of carrying
inventory
Answer:
Annual cost of carrying inventory
Question:
2. A company's strategic objectives are not on target, and attainment of clearly stated goals is the objective.
The company is inexperienced in determining what the effect of a suggested strategic change might be.
What should it consider?
Benchmarking Delphi method Trial and error Competitive espionage
Answer:
Trial and error
Question:
3. A company operates in a make-to-order environment and has departments with job shop layouts.
On-time schedule performance, most commonly, is a function of:
an actual queue time that is not longer than planned. reducing the number of jobs at work centers by
limiting floor space. achieving the planned internal setup and run times. splitting lots when necessary to
supply downstream operations.
Answer:
an actual queue time that is not longer than planned.
Question:
4. In a make-to-order (MTO) environment, master scheduling should take place at which of the following
levels? Raw material End product Subassembly Spare part
Answer:
Raw material
Question:
5. A small motor is used in an appliance production line. The demand varies due to seasonality and is
overplanned in the master schedule. The motor also has service part independent demand through a chain
of repair shops; this varies by hours of product usage. Which of the following is true of the safety stock?
Safety stock is minimal since repair shops will carry some in stock. Dependent demand variability is
ignored when determining safety stock. Actual demand is netted against forecast to determine safety stock.
Safety stock is carried by each repair shop.
Answer:
Dependent demand variability is ignored when determining safety stock.
Question:
6. The sales and operations planning (S&OP) horizon should be at least as long as which of the following?
Strategic planning horizon Business planning horizon Forecast interval End item lead time
,Answer:
Business planning horizon
Question:
7. What is earliest job due date an example of?
Available-to-promise Chase strategy Dispatching Infinite scheduling
Answer:
Dispatching
Question:
8. Resource planning for a company that manufactures a wide variety of products using batch production
would typically include which of the following?
Providing standard product lead times to customers Determining the level of capacity needed to meet
market requirements Providing the material required to meet customer demand Scheduling operations to
meet production requirements
Answer:
Determining the level of capacity needed to meet market requirements
Question:
9. Reductions in which two of the following production variables form the best performance measure of a
material requirements plan (MRP)?
Setup time and number of action messages Number of action messages and average queue Number of
action messages and component shortages
Answer:
Number of action messages and component shortages
Question:
10. Which type of specification requirement for supplier selection includes quality requirements?
Quantity Functional Price Performance
Answer:
Functional
Question:
11. A machine supplier realizes that a machine malfunction at a customer's facility would result in
expensive downtime and repair. The supplier decides to gather information about the machine and stock
repair parts that might be needed. This action best represents the concept of:
vendor-managed inventory. customer relationship management. hedging. consignment inventory.
Answer:
customer relationship management.
Question:
12. Barriers to overcome in developing a lean customer relationship include the customer's fear of which of
the following?
Sharing proprietary data, missing delivery dates, and having a single-source supplier
Answer:
Sharing proprietary data, missing delivery dates, and having a single-source supplier
, Question:
13. What three pieces of information should agree before payment is made on a supplier's invoice?
Purchase order, receiving report, and product specification Purchase requisition, purchase order, and
invoice Purchase order, receiving report, and invoice Purchase requisition, receiving report, and invoice
Answer:
Purchase order, receiving report, and invoice
Question:
14. Using suppliers to perform subcontracted operations requires that the services to be performed are:
listed on a purchase order the last step in the routing. less expensive being done outside. part of the routing.
Answer:
part of the routing.
Question:
15. Ensuring ease of access to safety data sheets can reduce which of the following risks?
Environmental harm following proper use Improper disposal of hazardous materials Operator electrocution
Excessive scrap factors
Answer:
Improper disposal of hazardous materials
Question:
16. A company manufactures and assembles large systems with a lead time of four months. Shipments are
scheduled toward the end of each month, and backlog ensures that shipments are fairly leveled each
month. What is indicated by a weekly work-in-process report showing a decrease?
A system has been completed. Throughput is increasing. There is a reporting mistake. Queue times are
decreasing.
Answer:
A system has been completed.
Question:
17. Which of the following is the most effective way to ensure quality?
Determining that the process consistently produces items that meet requirements Using statistical process
control to monitor the production process Preparing and retaining detailed records of defects Using simple
visual indicators of quality
Answer:
Determining that the process consistently produces items that meet requirements
Question:
18. Use of which of the following bills of material (BOMs) best support the planning needs of an
assemble-to-order (ATO) manufacturer who produces a product with many options and whose order
winner is delivery speed?
Multilevel BOMs for assemblies and safety stock of finished products Planning BOMs that overplan
options and safety stock for components with long lead times Multilevel BOMs for assemblies and safety
stock for components with long lead times Planning BOMs that overplan options and safety stock of
finished products
Answer:
Planning BOMs that overplan options and safety stock for components with long lead times
CORRECT ANSWERS
Question:
1. Which cost will decrease if order quantity decreases?
Cost of customer service Cost of manufacturing operations Cost of ordering Annual cost of carrying
inventory
Answer:
Annual cost of carrying inventory
Question:
2. A company's strategic objectives are not on target, and attainment of clearly stated goals is the objective.
The company is inexperienced in determining what the effect of a suggested strategic change might be.
What should it consider?
Benchmarking Delphi method Trial and error Competitive espionage
Answer:
Trial and error
Question:
3. A company operates in a make-to-order environment and has departments with job shop layouts.
On-time schedule performance, most commonly, is a function of:
an actual queue time that is not longer than planned. reducing the number of jobs at work centers by
limiting floor space. achieving the planned internal setup and run times. splitting lots when necessary to
supply downstream operations.
Answer:
an actual queue time that is not longer than planned.
Question:
4. In a make-to-order (MTO) environment, master scheduling should take place at which of the following
levels? Raw material End product Subassembly Spare part
Answer:
Raw material
Question:
5. A small motor is used in an appliance production line. The demand varies due to seasonality and is
overplanned in the master schedule. The motor also has service part independent demand through a chain
of repair shops; this varies by hours of product usage. Which of the following is true of the safety stock?
Safety stock is minimal since repair shops will carry some in stock. Dependent demand variability is
ignored when determining safety stock. Actual demand is netted against forecast to determine safety stock.
Safety stock is carried by each repair shop.
Answer:
Dependent demand variability is ignored when determining safety stock.
Question:
6. The sales and operations planning (S&OP) horizon should be at least as long as which of the following?
Strategic planning horizon Business planning horizon Forecast interval End item lead time
,Answer:
Business planning horizon
Question:
7. What is earliest job due date an example of?
Available-to-promise Chase strategy Dispatching Infinite scheduling
Answer:
Dispatching
Question:
8. Resource planning for a company that manufactures a wide variety of products using batch production
would typically include which of the following?
Providing standard product lead times to customers Determining the level of capacity needed to meet
market requirements Providing the material required to meet customer demand Scheduling operations to
meet production requirements
Answer:
Determining the level of capacity needed to meet market requirements
Question:
9. Reductions in which two of the following production variables form the best performance measure of a
material requirements plan (MRP)?
Setup time and number of action messages Number of action messages and average queue Number of
action messages and component shortages
Answer:
Number of action messages and component shortages
Question:
10. Which type of specification requirement for supplier selection includes quality requirements?
Quantity Functional Price Performance
Answer:
Functional
Question:
11. A machine supplier realizes that a machine malfunction at a customer's facility would result in
expensive downtime and repair. The supplier decides to gather information about the machine and stock
repair parts that might be needed. This action best represents the concept of:
vendor-managed inventory. customer relationship management. hedging. consignment inventory.
Answer:
customer relationship management.
Question:
12. Barriers to overcome in developing a lean customer relationship include the customer's fear of which of
the following?
Sharing proprietary data, missing delivery dates, and having a single-source supplier
Answer:
Sharing proprietary data, missing delivery dates, and having a single-source supplier
, Question:
13. What three pieces of information should agree before payment is made on a supplier's invoice?
Purchase order, receiving report, and product specification Purchase requisition, purchase order, and
invoice Purchase order, receiving report, and invoice Purchase requisition, receiving report, and invoice
Answer:
Purchase order, receiving report, and invoice
Question:
14. Using suppliers to perform subcontracted operations requires that the services to be performed are:
listed on a purchase order the last step in the routing. less expensive being done outside. part of the routing.
Answer:
part of the routing.
Question:
15. Ensuring ease of access to safety data sheets can reduce which of the following risks?
Environmental harm following proper use Improper disposal of hazardous materials Operator electrocution
Excessive scrap factors
Answer:
Improper disposal of hazardous materials
Question:
16. A company manufactures and assembles large systems with a lead time of four months. Shipments are
scheduled toward the end of each month, and backlog ensures that shipments are fairly leveled each
month. What is indicated by a weekly work-in-process report showing a decrease?
A system has been completed. Throughput is increasing. There is a reporting mistake. Queue times are
decreasing.
Answer:
A system has been completed.
Question:
17. Which of the following is the most effective way to ensure quality?
Determining that the process consistently produces items that meet requirements Using statistical process
control to monitor the production process Preparing and retaining detailed records of defects Using simple
visual indicators of quality
Answer:
Determining that the process consistently produces items that meet requirements
Question:
18. Use of which of the following bills of material (BOMs) best support the planning needs of an
assemble-to-order (ATO) manufacturer who produces a product with many options and whose order
winner is delivery speed?
Multilevel BOMs for assemblies and safety stock of finished products Planning BOMs that overplan
options and safety stock for components with long lead times Multilevel BOMs for assemblies and safety
stock for components with long lead times Planning BOMs that overplan options and safety stock of
finished products
Answer:
Planning BOMs that overplan options and safety stock for components with long lead times
