CPIM Practice Exam Questions & Answers Accurate 100%

A work center is receiving enough work, but it is not performing to plan. To detect problems in this work center, the planner should compare: - Answer actual output to planned output. A company is experiencing a change in demand from steady to sporadic. It currently uses economic order quantity (EOQ) to determine purchase quantities for a key component. Which of the following models should it use in the future? - Answer Period order quantity Which of the following roles of a finished goods warehouse deals with the grouping of different items into an order? - Answer Product mixing Which of the following time periods will result in a smoother forecast that is less swayed by random variability when using the moving average forecast technique? - Answer 12 months In a planning bill for an updated configuration of a cellphone, the total percentages for the amounts required for the three possible memory chips used equal 115. What does this indicate? - Answer The manufacturer is making a hedge against higher demand. Based on the information below, in what week would a planned order release be generated to satisfy the net requirement? Lead time: 3 weeks Order quantity: 100 Net requirement exists in: week 6 Net requirement quantity: 150 - Answer Week 3 EXPLANATION: Because the net requirement exists in week 6, the planned order release is offset by the lead time of three weeks. Thus, the planned order release will be generated in week 6 - 3 weeks = week 3. What is a benefits of setup reduction is most immediate? - Answer Reduced product cost In production and inventory control, it is important to know whether demand is independent or dependent because the distinction: - Answer determines the selection of appropriate replenishment methods. What is the term for an array of inventory broken out into different categories based on Pareto's law? - Answer ABC Classification Which managed inventory strategy would best suit a lean manufacturer that is unable to provide consistent order sizes due to fluctuations in demand for the various products it produces? - Answer Continuous replenishment Which technology can assist a company in detecting and identifying potential fraud across the supply chain? - Answer Artificial intelligence and machine learning A cleaning compound used to clean manufacturing equipment would be classified as which of the following types of inventory? - Answer Maintenance, repair, and operating supplies During which step of the purchasing cycle does an organization authorize the purchasing department to purchase specified materials in specified quantities within a specified time? - Answer Generate requisition. Which of the following situations will best enable a company to react swiftly to changes in the volume and mix of its products? - Answer Quick changeover of equipment The available capacity that exists on non-constraint resources beyond the capacity required to support the constraint is: - Answer idle capacity. Which of the following outcomes is the primary objective of total quality management (TQM)? - Answer Achieving customer satisfaction Which of the following techniques deals with the analysis and planning of logistics and manufacturing during short-, intermediate-, and long-term periods? - Answer Advanced planning and scheduling What is the main insight that the total cost of ownership (TCO) offers to the supply chain manager? - Answer The acquisition cost is often a very small portion of the total cost of raw materials and components Which tool is best suited to tracking the business activities associated with satisfying a customer's demand, from a supply chain management perspective? - Answer SCOR The term for actual customer descriptions of the functions and features they desire in goods and services is: - Answer the voice of the customer If the replenishment lead time of two weeks is reduced by 50% and all other factors remain constant, the safety stock will most likely: - Answer decrease EXPLANATION: The following formula is used to determine a new safety stock when the lead time interval changes: New Safety Stock = Old Safety Stock x Square Root of (New Lead Time Interval/Old Lead Time Interval) Using the example of old safety stock of 150, an old lead time of two weeks, and a new lead time of one week (reduced by 50%, per this problem), the new safety stock becomes 106, which is a decrease from 150. Which are costs of carrying inventory? - Answer Capital costs and storage costs Which of the following statements best describes flow manufacturing? - Answer Production is performed on a small range of products using the same sequence of operations. A production process is an I-type process from a VATI analysis where operations 1, 2, 3, and 4 operate sequentially and operations 1 through 3 require one unit as input for each one unit of output, but operation 4 requires two units as input to produce one unit of output. Unit processing times are 200 per hour for operation 1, 220 per hour for operation 2, 180 per hour for operation 3, and 100 per hour for operation 4. If demand is 110 per hour, which is true? - Answer Operation 3 is the constraint.