APICS CPIM Exam 1 questions with
complete solutions 2024
ABC jclassification j- jANS✓✓-Process jof jclassifying jitems jin jdescending jorder
jbased jon jannual jdollar jvolume jor jsome jother jcriteria. jThe jlist jis jthen jsplit jinto
j3 jclasses j- jA, jB, jand jC. jA jrepresents j10-20% jof jitems jbut j50-70% jof jdollar
jvolume; jB jrepresents j20% jof jitems jand j20% jof jdollar jvolume; jC jrepresents j60-
70% jof jitems jbut j10-30% jof jdollar jvolume. jThis jprinciple jstates jthat jeffort jand
jmoney jcan jbe jsaved jby japplying jlooser jcontrols jto jthe jlow jdollar jvolume
jitems j(C jclass) jthan jthe jhigher jdollar jvolume jitems j(A j& jB jclasses) jand
japplies jto jinventory, jpurchasing, jsales, jetc.
Advance jship jnotice j(ASN) j- jANS✓✓-Electronic jdata jinterchange j(EDI)
jnotification jof jshipment jof jgoods
Andon j- jANS✓✓-Electronic jboard jthat jprovides jvisibility jof jfloor jstatus jand
jgives jinfo jto jhelp jcoordinate jefforts jlinked jto jwork jcenters; jgreen jlight j=
jrunning, jred jlight j= jstop, jyellow jlight j= jneeds jattention
Anticipation jinventories j- jANS✓✓-Any jadditional jinventory jabove jbasic jpipeline
jstock jto jcover jprojected jtrends jof jincreased jsales, jplanned jpromo jprograms,
jseasonal jfluctuation, jplant jshutdowns, jand jvacations
Assemble-2-order j- jANS✓✓-Production jenvironment jwhere ja jgood jor jservice
jcan jbe jassembled jafter jreceipt jof ja jcustomer's jorder. jThe jkey jcomponents j(or
jingredients) jused jin jassembly jor jfinishing jprocess jare jplanned jand jstocked jin
janticipation jof ja jcustomer jorder. jReceipt jof jorder jinitiates jassembly jof jthe
jcustomized jproduct. jUseful jstrategy jwhen ja jlarge jnumber jof jend jproducts jcan
jbe jassembled jfrom jcommon jcomponents
Available jinventory j- jANS✓✓-On-hand jinventory jbalance jminus jallocations,
jreservations, jbackorders, jand jquantities jheld jfor jquality jproblems
Backflush j- jANS✓✓-Method jof jinventory jbookkeeping jwhere jthe jbook
jinventory jis jautomatically jreduced jafter jcompletion jof jactivity jon jcomponent's
jupper-level jparent jitem jbased jon jwhat jshould jhave jbeen jused jas jspecified jon
jthe jBOM jand jallocation jrecords; jdisadvantage jis jdifference jbetween jbook
jinventory jand jphysical jOH jinventory
,Backhauling j- jANS✓✓-Process jof jtransportation jreturning jfrom joriginal
jdestination jpoint jto jpoint jof jorigin; jcan jbe jfull, jpartial, jor jempty jload
Backlog j- jANS✓✓-All jcustomer jorders jreceived jbut jnot jyet jshipped j(open
jorders jor jorder jboard)
Backorder j- jANS✓✓-Unfulfilled jcustomer jorder jor jcommitment. jAn jimmediate
j(or jpast jdue) jdemand jagainst jan jitem jwhose jinventory jis jinsufficient jto jsatisfy
jthe jdemand
Back jscheduling j- jANS✓✓-Technique jfor jcalculating joperation jstart jdates jand
jdue jdates; jstart jwith jorder jdue jdate jand jwork jbackwards jto jcalculate jrequired
jstart jdate jand/or jdue jdates jfor jeach joperation
Batch j- jANS✓✓-Qty jscheduled jto jbe jproduced jor jin jproduction; jtype jof jmfg
jprocess jused jto jproduce jitems jwith jsimilar jdesigns j& jcover jwide jrange jof
jorder jvolumes; jitems jordered jare jof ja jrepeat jnature
Bill jof jlading j- jANS✓✓-Document jissued jby ja jcarrier jwhich jdetails ja jshipment
jof jmerchandise jand jgives jtitle jof jthat jshipment jto ja jspecified jparty.
Bill jof jmaterial j(BOM) j- jANS✓✓-Listing jof jall jthe jsubassemblies, jintermediates,
jparts, jand jraw jmaterials jthat jgo jinto ja jparent jassembly jshowing jthe jquantity
jof jeach jrequired jto jmake jan jassembly; jused jin jconjunction jwith jthe jmaster
jproduction jschedule jto jdetermine jthe jitems jfor jwhich jpurchase jrequisitions
jand jproduction jorders jmust jbe jreleased; jlist jof jall jthe jmaterials jneeded jto
jmake jone jproduction jrun jof ja jproduct, jby ja jcontract jmanufacturer, jof jpiece
jparts/components jfor jits jcustomers
Bonded jwarehouse j- jANS✓✓-Buildings jor jparts jof ja jbuilding jdesignated jby
jSec jof jTreasury jfor jstoring jimported jgoods, joperated junder jsupervision jof jUS
jCustoms
Bottleneck j- jANS✓✓-Facility, jfunction, jdepartment, jor jresource jwhose jcapacity
jis jless jthan jthe jdemand jplaced jupon jit; jmachine jor jwork jcenter
Break-bulk j- jANS✓✓-Dividing jtruckloads jof jsimilar jitems jinto jsmaller, jmore
jappropriate jqty's jfor juse
Buffer j- jANS✓✓-Qty jof jmaterials jawaiting jfurther jprocessing; jcan jrefer jto jraw
jmaterials, jsemi-finished jstores jor jhold jpoints, jor ja jwork jbacklog jthat jis
jpurposely jmaintained jbehind ja jwork jcenter; jin jTOC, jit jcan jbe jtime jor jmaterial
jand jsupport jthruput jand/or jdue jdate jperformance jmaintained jat jthe jconstraint,
jconvergent jpoints j(with ja jconstraint jpart), jdivergent jpoints, jand jshipping
jpoints
, Buffer jmanagement j- jANS✓✓-In jTOC, jprocess jwhere jall jexpediting jin ja jshop jis
jdriven jby jwhat jis jscheduled jto jbe jin jthe jbuffers j(constraint, jshipping, jor
jassembly); jby jexpediting jinto jbuffers, jsystem javoids jidleness jat jthe jconstraint
jand jprevents jmissed jdue jdate
Business jplan j- jANS✓✓-Statement jof jlong-range jstrategy jand jrevenue, jcost,
jand jprofit jobjectives jusually jaccompanied jby jbudgets, ja jprojected jbalance
jsheet, jand ja jcash jflow j(source jand japplication jof jfunds) jstatement; jdocument
jconsisting jof jthe jbusiness jdetails j(organization, jstrategy, jand jfinancing jtactics)
Capable-2-promise j- jANS✓✓-Process jof jcommitting jorders jagainst javailable
jcapacity jas jwell jas jinventory. jMay jinvolve jmultiple jmanufacturing jor
jdistribution jsites. jUsed jto jdetermine jwhen ja jnew jor junscheduled jcustomer
jorder jcan jbe jdelivered. jEmploys ja jfinite-scheduling jmodel jof jmanufacturing
jsystem jto jdetermine jwhen jan jitem jcan jbe jdelivered. jIncludes jany jconstraints
jthat jmight jrestrict jproduction, jsuch jas javailability jof jresources, jlead jtimes jfor
jraw jmaterials jor jpurchased jparts, jand jrequirements jfor jlower-level jcomponents
jor jsubassemblies. jThe jresulting jdelivery jdate jtakes jinto jconsideration
jproduction jcapacity, jcurrent jmanufacturing jenvironment, jand jfuture jorder
jcommitments. jObjective jis jto jreduce jtime jspent jby jplanners jin jexpediting
jorders jand jadjusting jplans jbecause jof jinaccurate jdelivery-date jpromises
Capacity jcontrol j- jANS✓✓-Process jof jmeasuring jproduction joutput jand
jcomparing jit jwith jthe jcapacity jplan jto jdetermine jif jvariance jexceeds jpre-
established jlimits jand jtaking jaction jto jget jback jon jplan jif jlimits jare jexceeded
Capacity jmanagement j- jANS✓✓-Function jof jestablishing, jmeasuring,
jmonitoring, jand jadjusting jlimits jof jcapacity jin jorder jto jexecute jall jmfg
jschedules; jexecuted jat j4 jlevels: jresource jrequirements jplanning, jrough-cut
jcapacity jplanning, jcapacity jrequirements jplanning, jand jinput/output jcontrol
Capacity jplanning j- jANS✓✓-Process jof jdetermining jamount jof jcapacity
jrequired jto jproduce jin jthe jfuture; jmay jbe jperformed jat jaggregate jor jproduct-
line j(RRP), jmaster-schedule jlevel j(R-CCP), jand jmaterials jrequirements jplanning
j(CRP)
Capacity jrequirements jplanning j(CRP) j- jANS✓✓-Process jof jdetermining jin
jdetail jamount jof jlabor jand jmachine jresources jrequired jto jcomplete jtask jof
jproduction; jinputs jare jopen jorders jand jplanned jorders; jchecks jagainst jall jtime
jperiods
Carrying jcost j- jANS✓✓-% jof jdollar jvalue jof jinventory jper junit jof jtime
j(generally jone jyear); jdepends jmainly jon jthe jcost jof jcapital jinvested jas jwell jas
jsuch jcosts jof jmaintaining jthe jinventory jas jtaxes jand jinsurance, jobsolescence,
jspoilage, jand jspace joccupied; jvaries jfrom j10% jto j35% jannually, jdepending jon
jtype jof jindustry
complete solutions 2024
ABC jclassification j- jANS✓✓-Process jof jclassifying jitems jin jdescending jorder
jbased jon jannual jdollar jvolume jor jsome jother jcriteria. jThe jlist jis jthen jsplit jinto
j3 jclasses j- jA, jB, jand jC. jA jrepresents j10-20% jof jitems jbut j50-70% jof jdollar
jvolume; jB jrepresents j20% jof jitems jand j20% jof jdollar jvolume; jC jrepresents j60-
70% jof jitems jbut j10-30% jof jdollar jvolume. jThis jprinciple jstates jthat jeffort jand
jmoney jcan jbe jsaved jby japplying jlooser jcontrols jto jthe jlow jdollar jvolume
jitems j(C jclass) jthan jthe jhigher jdollar jvolume jitems j(A j& jB jclasses) jand
japplies jto jinventory, jpurchasing, jsales, jetc.
Advance jship jnotice j(ASN) j- jANS✓✓-Electronic jdata jinterchange j(EDI)
jnotification jof jshipment jof jgoods
Andon j- jANS✓✓-Electronic jboard jthat jprovides jvisibility jof jfloor jstatus jand
jgives jinfo jto jhelp jcoordinate jefforts jlinked jto jwork jcenters; jgreen jlight j=
jrunning, jred jlight j= jstop, jyellow jlight j= jneeds jattention
Anticipation jinventories j- jANS✓✓-Any jadditional jinventory jabove jbasic jpipeline
jstock jto jcover jprojected jtrends jof jincreased jsales, jplanned jpromo jprograms,
jseasonal jfluctuation, jplant jshutdowns, jand jvacations
Assemble-2-order j- jANS✓✓-Production jenvironment jwhere ja jgood jor jservice
jcan jbe jassembled jafter jreceipt jof ja jcustomer's jorder. jThe jkey jcomponents j(or
jingredients) jused jin jassembly jor jfinishing jprocess jare jplanned jand jstocked jin
janticipation jof ja jcustomer jorder. jReceipt jof jorder jinitiates jassembly jof jthe
jcustomized jproduct. jUseful jstrategy jwhen ja jlarge jnumber jof jend jproducts jcan
jbe jassembled jfrom jcommon jcomponents
Available jinventory j- jANS✓✓-On-hand jinventory jbalance jminus jallocations,
jreservations, jbackorders, jand jquantities jheld jfor jquality jproblems
Backflush j- jANS✓✓-Method jof jinventory jbookkeeping jwhere jthe jbook
jinventory jis jautomatically jreduced jafter jcompletion jof jactivity jon jcomponent's
jupper-level jparent jitem jbased jon jwhat jshould jhave jbeen jused jas jspecified jon
jthe jBOM jand jallocation jrecords; jdisadvantage jis jdifference jbetween jbook
jinventory jand jphysical jOH jinventory
,Backhauling j- jANS✓✓-Process jof jtransportation jreturning jfrom joriginal
jdestination jpoint jto jpoint jof jorigin; jcan jbe jfull, jpartial, jor jempty jload
Backlog j- jANS✓✓-All jcustomer jorders jreceived jbut jnot jyet jshipped j(open
jorders jor jorder jboard)
Backorder j- jANS✓✓-Unfulfilled jcustomer jorder jor jcommitment. jAn jimmediate
j(or jpast jdue) jdemand jagainst jan jitem jwhose jinventory jis jinsufficient jto jsatisfy
jthe jdemand
Back jscheduling j- jANS✓✓-Technique jfor jcalculating joperation jstart jdates jand
jdue jdates; jstart jwith jorder jdue jdate jand jwork jbackwards jto jcalculate jrequired
jstart jdate jand/or jdue jdates jfor jeach joperation
Batch j- jANS✓✓-Qty jscheduled jto jbe jproduced jor jin jproduction; jtype jof jmfg
jprocess jused jto jproduce jitems jwith jsimilar jdesigns j& jcover jwide jrange jof
jorder jvolumes; jitems jordered jare jof ja jrepeat jnature
Bill jof jlading j- jANS✓✓-Document jissued jby ja jcarrier jwhich jdetails ja jshipment
jof jmerchandise jand jgives jtitle jof jthat jshipment jto ja jspecified jparty.
Bill jof jmaterial j(BOM) j- jANS✓✓-Listing jof jall jthe jsubassemblies, jintermediates,
jparts, jand jraw jmaterials jthat jgo jinto ja jparent jassembly jshowing jthe jquantity
jof jeach jrequired jto jmake jan jassembly; jused jin jconjunction jwith jthe jmaster
jproduction jschedule jto jdetermine jthe jitems jfor jwhich jpurchase jrequisitions
jand jproduction jorders jmust jbe jreleased; jlist jof jall jthe jmaterials jneeded jto
jmake jone jproduction jrun jof ja jproduct, jby ja jcontract jmanufacturer, jof jpiece
jparts/components jfor jits jcustomers
Bonded jwarehouse j- jANS✓✓-Buildings jor jparts jof ja jbuilding jdesignated jby
jSec jof jTreasury jfor jstoring jimported jgoods, joperated junder jsupervision jof jUS
jCustoms
Bottleneck j- jANS✓✓-Facility, jfunction, jdepartment, jor jresource jwhose jcapacity
jis jless jthan jthe jdemand jplaced jupon jit; jmachine jor jwork jcenter
Break-bulk j- jANS✓✓-Dividing jtruckloads jof jsimilar jitems jinto jsmaller, jmore
jappropriate jqty's jfor juse
Buffer j- jANS✓✓-Qty jof jmaterials jawaiting jfurther jprocessing; jcan jrefer jto jraw
jmaterials, jsemi-finished jstores jor jhold jpoints, jor ja jwork jbacklog jthat jis
jpurposely jmaintained jbehind ja jwork jcenter; jin jTOC, jit jcan jbe jtime jor jmaterial
jand jsupport jthruput jand/or jdue jdate jperformance jmaintained jat jthe jconstraint,
jconvergent jpoints j(with ja jconstraint jpart), jdivergent jpoints, jand jshipping
jpoints
, Buffer jmanagement j- jANS✓✓-In jTOC, jprocess jwhere jall jexpediting jin ja jshop jis
jdriven jby jwhat jis jscheduled jto jbe jin jthe jbuffers j(constraint, jshipping, jor
jassembly); jby jexpediting jinto jbuffers, jsystem javoids jidleness jat jthe jconstraint
jand jprevents jmissed jdue jdate
Business jplan j- jANS✓✓-Statement jof jlong-range jstrategy jand jrevenue, jcost,
jand jprofit jobjectives jusually jaccompanied jby jbudgets, ja jprojected jbalance
jsheet, jand ja jcash jflow j(source jand japplication jof jfunds) jstatement; jdocument
jconsisting jof jthe jbusiness jdetails j(organization, jstrategy, jand jfinancing jtactics)
Capable-2-promise j- jANS✓✓-Process jof jcommitting jorders jagainst javailable
jcapacity jas jwell jas jinventory. jMay jinvolve jmultiple jmanufacturing jor
jdistribution jsites. jUsed jto jdetermine jwhen ja jnew jor junscheduled jcustomer
jorder jcan jbe jdelivered. jEmploys ja jfinite-scheduling jmodel jof jmanufacturing
jsystem jto jdetermine jwhen jan jitem jcan jbe jdelivered. jIncludes jany jconstraints
jthat jmight jrestrict jproduction, jsuch jas javailability jof jresources, jlead jtimes jfor
jraw jmaterials jor jpurchased jparts, jand jrequirements jfor jlower-level jcomponents
jor jsubassemblies. jThe jresulting jdelivery jdate jtakes jinto jconsideration
jproduction jcapacity, jcurrent jmanufacturing jenvironment, jand jfuture jorder
jcommitments. jObjective jis jto jreduce jtime jspent jby jplanners jin jexpediting
jorders jand jadjusting jplans jbecause jof jinaccurate jdelivery-date jpromises
Capacity jcontrol j- jANS✓✓-Process jof jmeasuring jproduction joutput jand
jcomparing jit jwith jthe jcapacity jplan jto jdetermine jif jvariance jexceeds jpre-
established jlimits jand jtaking jaction jto jget jback jon jplan jif jlimits jare jexceeded
Capacity jmanagement j- jANS✓✓-Function jof jestablishing, jmeasuring,
jmonitoring, jand jadjusting jlimits jof jcapacity jin jorder jto jexecute jall jmfg
jschedules; jexecuted jat j4 jlevels: jresource jrequirements jplanning, jrough-cut
jcapacity jplanning, jcapacity jrequirements jplanning, jand jinput/output jcontrol
Capacity jplanning j- jANS✓✓-Process jof jdetermining jamount jof jcapacity
jrequired jto jproduce jin jthe jfuture; jmay jbe jperformed jat jaggregate jor jproduct-
line j(RRP), jmaster-schedule jlevel j(R-CCP), jand jmaterials jrequirements jplanning
j(CRP)
Capacity jrequirements jplanning j(CRP) j- jANS✓✓-Process jof jdetermining jin
jdetail jamount jof jlabor jand jmachine jresources jrequired jto jcomplete jtask jof
jproduction; jinputs jare jopen jorders jand jplanned jorders; jchecks jagainst jall jtime
jperiods
Carrying jcost j- jANS✓✓-% jof jdollar jvalue jof jinventory jper junit jof jtime
j(generally jone jyear); jdepends jmainly jon jthe jcost jof jcapital jinvested jas jwell jas
jsuch jcosts jof jmaintaining jthe jinventory jas jtaxes jand jinsurance, jobsolescence,
jspoilage, jand jspace joccupied; jvaries jfrom j10% jto j35% jannually, jdepending jon
jtype jof jindustry
