https://www.stuvia.com/user/performance
APICS CPIM-MPR Exam Practice Questions | (Original) EXAM | Latest Update |
Original Questions & Answers with Detailed Rationales | Graded A+
Exam Format: 105 questions | 3.5 hours
Content Source: APICS CPIM-MPR Exam Content Manual
Module 1: Supply Chain Fundamentals and Strategic
Alignment
1. Which of the following manufacturing environments would
have an order decoupling point that is closest to the
customer?
A) Make-to-order
B) Make-to-stock
C) Assemble-to-order
D) Engineer-to-order
Answer: B
Rationale: The customer order decoupling point is the point at
which demand changes from independent to dependent. In the
make-to-stock environment, the order decoupling point is the
finished goods inventory, which represents the closest point to
the end customer.
2. Which of the following is NOT crucial to physical distribution
planning?
A) Inventory resupply shipments
,https://www.stuvia.com/user/performance
B) Customer delivery promises
C) Interplant shipments
D) Inventory turnover ratio
Answer: D
Rationale: Physical distribution activities are planned based on
information developed in demand management, including
customer delivery promises, interplant shipments, and
inventory resupply. Inventory turnover ratio is a performance
metric, not a planning input.
3. The primary purpose of a supply chain strategy is to:
A) Minimize all operational costs
B) Align supply chain capabilities with competitive priorities
C) Maximize inventory levels to ensure availability
D) Eliminate all suppliers except one
Answer: B
Rationale: Supply chain strategy must align with the firm's
competitive priorities (cost, quality, delivery, flexibility) to create
value. Minimizing costs alone may sacrifice other priorities.
4. A company that designs and builds custom machinery only
after receiving a customer order is using which manufacturing
strategy?
A) Make-to-Stock (MTS)
B) Assemble-to-Order (ATO)
,https://www.stuvia.com/user/performance
C) Engineer-to-Order (ETO)
D) Make-to-Order (MTO)
Answer: C
Rationale: Engineer-to-Order (ETO) means the product is
designed and built after the customer order is received. MTO
uses existing designs but starts production after an order.
5. Which of the following is a competitive priority?
A) Cost
B) Capital structure
C) Office layout
D) Employee parking
Answer: A
Rationale: The four primary competitive priorities are cost,
quality, delivery (speed/reliability), and flexibility.
6. A company's order winners are speed and flexibility. This
suggests its supply chain should prioritize:
A) Cost minimization above all else
B) Responsiveness and agility
C) Maximum inventory efficiency
D) Long production runs
Answer: B
Rationale: Order winners of speed and flexibility require a
responsive, agile supply chain that can react quickly to demand
changes.
, https://www.stuvia.com/user/performance
7. Which strategy is best for a firm competing on cost in a
mature market?
A) Engineer-to-Order
B) Make-to-Stock with efficient supply chain
C) Job shop production
D) Custom design for every order
Answer: B
Rationale: Make-to-Stock with an efficient supply chain (high
utilization, low cost, standardized processes) aligns with a cost-
leadership strategy in mature markets.
8. Value chain analysis examines:
A) Only internal manufacturing processes
B) All activities from raw material to end customer
C) Only supplier costs
D) Financial ratios exclusively
Answer: B
Rationale: Value chain analysis examines all links a company
uses to produce and deliver products, from raw materials
through end customer delivery.
9. In a job-shop layout, the primary advantage is:
A) High volume, low variety production
B) Flexibility to produce many different products in small
batches
APICS CPIM-MPR Exam Practice Questions | (Original) EXAM | Latest Update |
Original Questions & Answers with Detailed Rationales | Graded A+
Exam Format: 105 questions | 3.5 hours
Content Source: APICS CPIM-MPR Exam Content Manual
Module 1: Supply Chain Fundamentals and Strategic
Alignment
1. Which of the following manufacturing environments would
have an order decoupling point that is closest to the
customer?
A) Make-to-order
B) Make-to-stock
C) Assemble-to-order
D) Engineer-to-order
Answer: B
Rationale: The customer order decoupling point is the point at
which demand changes from independent to dependent. In the
make-to-stock environment, the order decoupling point is the
finished goods inventory, which represents the closest point to
the end customer.
2. Which of the following is NOT crucial to physical distribution
planning?
A) Inventory resupply shipments
,https://www.stuvia.com/user/performance
B) Customer delivery promises
C) Interplant shipments
D) Inventory turnover ratio
Answer: D
Rationale: Physical distribution activities are planned based on
information developed in demand management, including
customer delivery promises, interplant shipments, and
inventory resupply. Inventory turnover ratio is a performance
metric, not a planning input.
3. The primary purpose of a supply chain strategy is to:
A) Minimize all operational costs
B) Align supply chain capabilities with competitive priorities
C) Maximize inventory levels to ensure availability
D) Eliminate all suppliers except one
Answer: B
Rationale: Supply chain strategy must align with the firm's
competitive priorities (cost, quality, delivery, flexibility) to create
value. Minimizing costs alone may sacrifice other priorities.
4. A company that designs and builds custom machinery only
after receiving a customer order is using which manufacturing
strategy?
A) Make-to-Stock (MTS)
B) Assemble-to-Order (ATO)
,https://www.stuvia.com/user/performance
C) Engineer-to-Order (ETO)
D) Make-to-Order (MTO)
Answer: C
Rationale: Engineer-to-Order (ETO) means the product is
designed and built after the customer order is received. MTO
uses existing designs but starts production after an order.
5. Which of the following is a competitive priority?
A) Cost
B) Capital structure
C) Office layout
D) Employee parking
Answer: A
Rationale: The four primary competitive priorities are cost,
quality, delivery (speed/reliability), and flexibility.
6. A company's order winners are speed and flexibility. This
suggests its supply chain should prioritize:
A) Cost minimization above all else
B) Responsiveness and agility
C) Maximum inventory efficiency
D) Long production runs
Answer: B
Rationale: Order winners of speed and flexibility require a
responsive, agile supply chain that can react quickly to demand
changes.
, https://www.stuvia.com/user/performance
7. Which strategy is best for a firm competing on cost in a
mature market?
A) Engineer-to-Order
B) Make-to-Stock with efficient supply chain
C) Job shop production
D) Custom design for every order
Answer: B
Rationale: Make-to-Stock with an efficient supply chain (high
utilization, low cost, standardized processes) aligns with a cost-
leadership strategy in mature markets.
8. Value chain analysis examines:
A) Only internal manufacturing processes
B) All activities from raw material to end customer
C) Only supplier costs
D) Financial ratios exclusively
Answer: B
Rationale: Value chain analysis examines all links a company
uses to produce and deliver products, from raw materials
through end customer delivery.
9. In a job-shop layout, the primary advantage is:
A) High volume, low variety production
B) Flexibility to produce many different products in small
batches
