CPIM APICS FINAL EXAM TEST 2025/2026 QUESTIONS
WITH ANSWERS MARKED A+
✔✔Distribution center - ✔✔Warehouse with FG and/or service items
✔✔Distribution channel - ✔✔Distribution route, from raw materials thru consumption,
that products travel
✔✔Distribution inventory - ✔✔Inventory, usually spare parts and finished goods, located
in the distribution system (e.g., in warehouses, in transit between warehouses and the
consumer)
✔✔Distribution requirements planning (DRP) - ✔✔Function of determining the need to
replenish inventory at branch warehouses; time-phased order point approach is used
where the planned orders at the branch warehouse level are ""exploded"" via MRP logic
to become gross requirements on the supplying source; In multilevel distribution
networks, this explosion process can continue down through the various levels of
regional warehouses (master warehouse, factory warehouse, etc.) and become input to
the master production schedule; demand on the supplying sources is recognized as
dependent, and standard MRP logic applies; replenishment inventory calculations, may
be based on other planning approaches such as period order quantities or ""replace
exactly what was used,"" rather than being limited to the time-phased order point
approach
✔✔Distribution warehouse - ✔✔Facility that receives items in large lots, stores them
temporarily, and breaks them into smaller lots destined for a variety of locations
✔✔Dock-2-stock - ✔✔Program where specific quality and packaging requirements are
met before the product is released; prequalified goods are shipped directly into the
customer's inventory; eliminates costly handling of components (receiving & inspection)
and enables them to move into production
✔✔Drum schedule - ✔✔Detailed production schedule for a resource that sets the pace
for the entire system; must reconcile the customer requirements with system
constraint(s)
✔✔Economic order quantity (EOQ) - ✔✔Type of fixed order qty model that determines
amt of item to be purchased or manufactured at one time
✔✔Efficiency - ✔✔Measurement of actual output to the standard output expected
✔✔Electronic data interchange (EDI) - ✔✔Paperless (electronic) exchange of trading
documents, such as purchase orders, shipment authorizations, advanced shipment
notices, and invoices, using standardized document formats
, ✔✔Enterprise resource planning (ERP) - ✔✔Framework for organizing, defining, and
standardizing the business processes necessary to effectively plan and control an
organization so the organization can use its internal knowledge to seek external
advantage
✔✔External failure costs - ✔✔Includes such costs as warranty and returns
✔✔External setup time - ✔✔Time associated with elements of a setup procedure
performed while process or machine is running
✔✔Extrinsic forecasting method - ✔✔Forecast method on a correlated leading indicator,
such as estimating furniture sales based on housing starts; tends to be more useful for
large aggregations, such as total company sales, than for individual product sales
✔✔Field service - ✔✔Functions of installing and maintaining a product for a customer
after the sale or during the lease; may also include training and implementation
assistance
✔✔Final assembly schedule (FAS) - ✔✔Schedule of end items to finish the product for
specific customers' orders in a make-2-order or assemble-2-order environment
✔✔Finite forward schedule - ✔✔Equipment scheduling technique that builds a schedule
by proceeding sequentially from the initial period to the final period while observing
capacity limits; uses Gantt chart
✔✔Finite loading - ✔✔Assigning no more work to a work center than the work center
can be expected to execute in a given time period; usually refers to a computer
technique that involves calculating shop priority revisions in order to level load operation
by operation
✔✔Firm planned order (FPO) - ✔✔Planned order that can be frozen in time and qty;
computer isn't allowed to change it automatically, must be done by planner in charge of
item; this technique can aid planners working with MRP systems to respond to material
and capacity issues
✔✔Flowchart - ✔✔One of 7 tools of quality that shows the operations, transportation,
storages, delays, inspections, and so on related to a process
✔✔Flow processing - ✔✔System in which work flows over a stationary path with little
variance in the rate of flow; known as repetitive mfg if discrete units are produced
(otherwise continuous mfg)
✔✔Fluctuation inventory - ✔✔Inventory that is carried as a cushion to protect against
forecast error
WITH ANSWERS MARKED A+
✔✔Distribution center - ✔✔Warehouse with FG and/or service items
✔✔Distribution channel - ✔✔Distribution route, from raw materials thru consumption,
that products travel
✔✔Distribution inventory - ✔✔Inventory, usually spare parts and finished goods, located
in the distribution system (e.g., in warehouses, in transit between warehouses and the
consumer)
✔✔Distribution requirements planning (DRP) - ✔✔Function of determining the need to
replenish inventory at branch warehouses; time-phased order point approach is used
where the planned orders at the branch warehouse level are ""exploded"" via MRP logic
to become gross requirements on the supplying source; In multilevel distribution
networks, this explosion process can continue down through the various levels of
regional warehouses (master warehouse, factory warehouse, etc.) and become input to
the master production schedule; demand on the supplying sources is recognized as
dependent, and standard MRP logic applies; replenishment inventory calculations, may
be based on other planning approaches such as period order quantities or ""replace
exactly what was used,"" rather than being limited to the time-phased order point
approach
✔✔Distribution warehouse - ✔✔Facility that receives items in large lots, stores them
temporarily, and breaks them into smaller lots destined for a variety of locations
✔✔Dock-2-stock - ✔✔Program where specific quality and packaging requirements are
met before the product is released; prequalified goods are shipped directly into the
customer's inventory; eliminates costly handling of components (receiving & inspection)
and enables them to move into production
✔✔Drum schedule - ✔✔Detailed production schedule for a resource that sets the pace
for the entire system; must reconcile the customer requirements with system
constraint(s)
✔✔Economic order quantity (EOQ) - ✔✔Type of fixed order qty model that determines
amt of item to be purchased or manufactured at one time
✔✔Efficiency - ✔✔Measurement of actual output to the standard output expected
✔✔Electronic data interchange (EDI) - ✔✔Paperless (electronic) exchange of trading
documents, such as purchase orders, shipment authorizations, advanced shipment
notices, and invoices, using standardized document formats
, ✔✔Enterprise resource planning (ERP) - ✔✔Framework for organizing, defining, and
standardizing the business processes necessary to effectively plan and control an
organization so the organization can use its internal knowledge to seek external
advantage
✔✔External failure costs - ✔✔Includes such costs as warranty and returns
✔✔External setup time - ✔✔Time associated with elements of a setup procedure
performed while process or machine is running
✔✔Extrinsic forecasting method - ✔✔Forecast method on a correlated leading indicator,
such as estimating furniture sales based on housing starts; tends to be more useful for
large aggregations, such as total company sales, than for individual product sales
✔✔Field service - ✔✔Functions of installing and maintaining a product for a customer
after the sale or during the lease; may also include training and implementation
assistance
✔✔Final assembly schedule (FAS) - ✔✔Schedule of end items to finish the product for
specific customers' orders in a make-2-order or assemble-2-order environment
✔✔Finite forward schedule - ✔✔Equipment scheduling technique that builds a schedule
by proceeding sequentially from the initial period to the final period while observing
capacity limits; uses Gantt chart
✔✔Finite loading - ✔✔Assigning no more work to a work center than the work center
can be expected to execute in a given time period; usually refers to a computer
technique that involves calculating shop priority revisions in order to level load operation
by operation
✔✔Firm planned order (FPO) - ✔✔Planned order that can be frozen in time and qty;
computer isn't allowed to change it automatically, must be done by planner in charge of
item; this technique can aid planners working with MRP systems to respond to material
and capacity issues
✔✔Flowchart - ✔✔One of 7 tools of quality that shows the operations, transportation,
storages, delays, inspections, and so on related to a process
✔✔Flow processing - ✔✔System in which work flows over a stationary path with little
variance in the rate of flow; known as repetitive mfg if discrete units are produced
(otherwise continuous mfg)
✔✔Fluctuation inventory - ✔✔Inventory that is carried as a cushion to protect against
forecast error
