CPIM Practice Exam Questions and
Answers
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
Answers
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
