CPIM Practice Questions & Answers Solved 100%

Creating an extensive distribution system in order to reduce shipment time to customers conflicts with which of the following objectives? - Answer Lowest distribution costs Which is set up when a product is available from several sources but only one source gets all of the business? - Answer Single-Source Supplier Which originated with the department or person who will be the ultimate user - Answer Purchase requisition Which of the following provides insight into why the acquisition cost is often a very small portion of the supply chain's total cost? - Answer Total cost of ownership Which tends to increase when shipments are by full truckload rather than less than truckload? - Answer Carrying Costs In the middle of April, an unusually large order comes in from a customer, at odds with forecast data. In May, the customer's orders are more in line with forecasts. This could be the result of: - Answer An exceptional event Which of the following describes the UN Global Compact Management Model? - Answer Framework for guiding companies through the process of formally committing to, assessing, defining, implementing, measuring, and communicating the UN Global Compact and its principles Per the theory of constraints (TOC), in a plant producing a complex product with higher demand than be be produced at present, which would be the best way listed to find "the weakest link" in the manufacturing process. - Answer Look for a fully utilized work center with work in process inventory accumulating before it but low work center utilization of direct downstream work center Which of the following is a key performance indicator critical to manufacturing execution and an accurate reflection of the company's assets? - Answer Record accuracy A manufacturer places a replenishment order to replace sold or used items every two months. This is an example of what kind of inventory model? - Answer Fixed reorder cycle A manager has factored in an additional three days for an order to protect against fluctuation in lead time. If all processes run smoothly, a work center might be able to complete orders ahead of time. What is this additional time called? - Answer Safety lead time What is the term for the necessary activities and techniques used by a corporation to ensure that they always have the desired level of raw materials to meet demand? - Answer Inventory control What sets out the provisions and agreements of a contract? - Answer Terms and conditions Which of the following is a characteristic of flow manufacturing? - Answer Work centers are dedicated to producing similar products Resource planning takes place at which of the following levels? - Answer Business plan Input/Output control is a technique for monitoring the: - Answer Capacity requirement plan If a manufacturer prioritizes avoiding production interruptions caused by supply issues, what selection criterial should it prioritize in the supplier selection process? - Answer Reliability Which of the following tools uses mathematical algorithms or logic to perform optimization or simulation on finite capacity scheduling - Answer Advanced planning and scheduling Which of thee following is a critical factor in the supplier selection process? - Answer Supplier's manufacturing capability What is capacity requirements planning (CRP) primarily used for? - Answer Balancing work center capacity and load A benefit of implementing electronic data interchange (EDI) with a supplier is a reduction in: - Answer Data Errors Which functional area would best be able to help engineers determine weather a material can be used in amounts sufficient for total demand within constraints on the final product cost? - Answer Purchasing Order promising is the process of - Answer Making a delivery commitment Which of the following is the process of combining statistical forecasting techniques and judgement to construct demand estimated for products/services across the supply chain from the suppliers raw material to the consumers needs? - Answer Demand planning A guitar retailer sells four Gibson Les Pauls and a Fender Telecaster in one week. The manager place an order to Gibson for Four Les Pauls and another order to Fender for a single Telecaster. What is the name for this lot ordering technique? - Answer Lot for Lot Which of the following activities represents reverse logistics? - Answer Returning goods to the seller for repair, remanufacture, or recycling activity. Sales and operations plans perform which of the following action? - Answer Reconcile all supply, demand, and new product plans at the aggregate level and tie to the business plan Owner's equity is defined as: - Answer The residual claim by the company's owners or shareholders to the company's assets less its liabilities. A workstation can produce 100 pencils per hour and possibly 20,000 per year. This is a measure of the workstations hourly and annual - Answer Capacity Product inventory that is accumulated by the manufacturer in advance of the peak selling season is an example of - Answer Anticipation inventory What is the distinction between the distribution channel and the transaction channel? - Answer The distribution channel is concerned with the route of goods; the transaction channel is concerned with the transfer of ownership Which of the following terms applies to spreading orders out in time or rescheduling operations so that the amount of work to be done in sequential time periods tends to be distibuted evenly and is achievable? - Answer Load Leveling Which of the following is true if material and capacity resources are to be planned effectively? - Answer All sources of demand must be identifies A statement of lone-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and cash flow is called a; - Answer Business plan A repetitive pattern of demand from year to year with some periods considerably higher than others is known as - Answer Seasonality In which accounting method for valuing inventory is the most recently received the first to be used or sold? - Answer Last in, first out Inventory carrying cost includes: - Answer The costs of obsolescence and storage What source of inventory loss results from material outside of specifications that makes rework impractical? - Answer Scrap What is the term for a facility, function, department, or resource whose capacity is less than the demand placed upon it? - Answer Bottleneck When customer orders are received in a make to stock environment, they consume: - Answer Finished goods Preventive maintenance - comprising adjustments, replacements, and basic cleanliness - is used to forestall machine breakdowns. With regular preventive maintenance, what can be expected to happen to the cost of failure and poor quality? - Answer It will be reduced in the long term In the theory of constrains (TOC) what is the term "the weakest link" used to describe? - Answer Resources with the least throughput in the system Which of the following types of files is a key input to material requirements planning (MRP) - Answer Bill of material Which of the following is a zoned inventory storage location system? - Answer A manufacturer stocks flammable goods in a designated area The term for a forecasting technique that uses an average of certain number of observations, with each new observation added and the oldest observation dropped, is - Answer moving average The term jidoka refers to the process of - Answer Halting the production process when a defect occurs The primary objective of lean production is to reduce - Answer Waste Which of the following activities in the physical distribution system creates time value by placing the product close to the customer - Answer Distribution inventories Forecasters and users of forecasts use information on forecast accuracy to understand the reliability and relevance of the data as they are used to determine demand characteristics, variation, and: - Answer Sability What is the definition of data governance? - Answer Overall management of the accessibility, usability, reliability, and security of data used to ensure data record accuracy Which is a production strategy that avoids idle capacity but could have issues if the forecast is inaccurate - Answer Level For the purpose of production planning, product families should be established on the basis of - Answer Similarities in manufacturing process If the opening inventory is 100 units, sales are 500 units, and the ending inventory should be 200 units, what will manufacturing produce? - Answer 600 units How does advanced planning and scheduling (APS) software differ from other planning systems? - Answer APS simultaneously plans and schedules production based on available materials, labor, and plant capacity Which production planning method maintains a stable inventory level while varying production to meet demand? - Answer Chase production method Which is a characteristic of demand? - Answer Seasonal variation An organization does not engage in sales and operations planning (S&OP) at present. The organization has clear policies regarding aggregate inventory levels, but inventory tends to be too high toward the end of each budget year. What can an inventory management professional say if management is discussing whether or not to start an S&OP process at the organization? - Answer The S&OP process would promote monthly aggregate inventory corrections Which are primary activities in manufacturing planning and control? - Answer Production planning and inventory management Which S&OP meeting addresses disagreements from different functional areas regarding the sales and operations plans? - Answer Executive meeting Which basic production planning strategy will build inventory and avoid the costs of excess capacity - Answer Level production strategy A manufacturer is unable to meet a customers demand with their current in-house capacity and strategy. Assuming that there are no secret and minimal proprietary design factors, to which strategy could they turn to meet demand while neither incurring greater inventory costs nor reducing their own capacity? - Answer Subcontracting What source of demand are considered when performing demand planning? - Answer Demand from all sources In a conventional manufacturing planning and control environment, which of the following objectives often conflict? - Answer Meet customer service target and decrease inventory investment What is a characteristic of the production plan? - Answer It is a plan that both the production and sales and marketing department agree to What is the key output of the sales and operations planning process? - Answer Production plan What is the term for the process of interpreting the production plans impact on critical key materials and capacity? - Answer Resource requirement planning Which is the biggest tradeoff that needs to be accepted when an industry with strong seasonality chooses a level production strategy? - Answer Increased inventory carrying cost Which of the following goals of cycle counting is a benefit for production? - Answer The material count is accurate by location Which task is completed at the end of the periodic inventory process? - Answer Inventory adjustments Which would be likely to result in an inaccurate count of inventory? - Answer Moving inventory to a different work center without recording the movement The primary objective of cycle counting it to: - Answer Eliminate the causes of error Which of the following primarily focuses on ensuring that inventory records accurately represent the value of inventory? - Answer Periodic Inventory Which inventory audit technique relies on a dedicated, trained staff who counts small amounts of inventory every workday? - Answer Cycle counting What type of inventory loss is most likely to impact a commercial bakery? - Answer Shelf life A company is debating whether to add production capacity or outsource the additional volume. The process they must go through is called: - Answer make or buy decision Managing consignment inventory is an essential function in which of the following processes? - Answer Demand management