CMRP Baseline Quiz Overview UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Stock Requisition - CORRECT ANSWER - This is a request from a department for one or
more items that are carried in the organization's warehouse or storeroom. All that is required is
an item number and a quantity.
Standing Order - CORRECT ANSWER - A standing order is for the automatic delivery of a
specific amount of product on a regular, pre-determined basis. A standing order always has a
start and end date, total amount, and defined delivery dates and quantities.
FOB shipping point - CORRECT ANSWER - In this case the title of the goods passes to the
facility when the shipping agent takes possession. The facility is responsible for all freight costs
and for filing any damage claim.
Returned Goods Authorization (RGA) - CORRECT ANSWER - Completion of a returned
goods authorization should result in a credit memo.
Value Analysis Process - CORRECT ANSWER - Identifying the top 10 vendors with the
lowest spend does not add value to the process.
Purchasing Metrics - CORRECT ANSWER - Metrics that are used to evaluate the efficiency
and effectiveness of purchasing activities.
Invoice discrepancies - CORRECT ANSWER - Issues or differences found in invoices that
may require resolution.
Obsolete or expired inventory - CORRECT ANSWER - Inventory items that are no longer
usable or have passed their expiration date.
, Total delivered cost - CORRECT ANSWER - This type of cost evaluation tool involves all
aspects of the product cycle.
% of purchases on contract - CORRECT ANSWER - The percentage of total purchases that
are made under a contractual agreement.
Non-stock requisition - CORRECT ANSWER - An internal form filed by a certain
department to request a repeat item or items that are not stocked in the facility's Central Store or
storeroom, but which are used regularly.
Benefits of incorporating demand forecasting - CORRECT ANSWER - Improved pricing and
shipping costs, lower amounts of safety stock, reduced inventory stock outs and product
obsolescence.
Traveling requisition - CORRECT ANSWER - An older version of a non-stock requisition
used in-house in a manual ordering system and prepared by a department to obtain repeat, non-
stock items from a vendor that are regularly used.
Cost of goods sold - CORRECT ANSWER - Dividing a facility's cost of goods sold by the
ending inventory value results in the inventory turns for that product.
Periodic inventory counting - CORRECT ANSWER - Counts everything in the storeroom or
other selected inventory location and occurs at regular, predetermined intervals.
ABC analysis - CORRECT ANSWER - A method of categorizing inventory items based on
their importance, where 'A' priority items are of highest priority.
Lead-time - CORRECT ANSWER - A calculation of supply demand from the time it takes to
place an order to the time the order item is depleted.
Cycle counting - CORRECT ANSWER - Counts supplies in a designated area by selecting
smaller portions of inventory items to count in a scheduled manner throughout the year.
ACTUAL Exam Questions and CORRECT
Answers
Stock Requisition - CORRECT ANSWER - This is a request from a department for one or
more items that are carried in the organization's warehouse or storeroom. All that is required is
an item number and a quantity.
Standing Order - CORRECT ANSWER - A standing order is for the automatic delivery of a
specific amount of product on a regular, pre-determined basis. A standing order always has a
start and end date, total amount, and defined delivery dates and quantities.
FOB shipping point - CORRECT ANSWER - In this case the title of the goods passes to the
facility when the shipping agent takes possession. The facility is responsible for all freight costs
and for filing any damage claim.
Returned Goods Authorization (RGA) - CORRECT ANSWER - Completion of a returned
goods authorization should result in a credit memo.
Value Analysis Process - CORRECT ANSWER - Identifying the top 10 vendors with the
lowest spend does not add value to the process.
Purchasing Metrics - CORRECT ANSWER - Metrics that are used to evaluate the efficiency
and effectiveness of purchasing activities.
Invoice discrepancies - CORRECT ANSWER - Issues or differences found in invoices that
may require resolution.
Obsolete or expired inventory - CORRECT ANSWER - Inventory items that are no longer
usable or have passed their expiration date.
, Total delivered cost - CORRECT ANSWER - This type of cost evaluation tool involves all
aspects of the product cycle.
% of purchases on contract - CORRECT ANSWER - The percentage of total purchases that
are made under a contractual agreement.
Non-stock requisition - CORRECT ANSWER - An internal form filed by a certain
department to request a repeat item or items that are not stocked in the facility's Central Store or
storeroom, but which are used regularly.
Benefits of incorporating demand forecasting - CORRECT ANSWER - Improved pricing and
shipping costs, lower amounts of safety stock, reduced inventory stock outs and product
obsolescence.
Traveling requisition - CORRECT ANSWER - An older version of a non-stock requisition
used in-house in a manual ordering system and prepared by a department to obtain repeat, non-
stock items from a vendor that are regularly used.
Cost of goods sold - CORRECT ANSWER - Dividing a facility's cost of goods sold by the
ending inventory value results in the inventory turns for that product.
Periodic inventory counting - CORRECT ANSWER - Counts everything in the storeroom or
other selected inventory location and occurs at regular, predetermined intervals.
ABC analysis - CORRECT ANSWER - A method of categorizing inventory items based on
their importance, where 'A' priority items are of highest priority.
Lead-time - CORRECT ANSWER - A calculation of supply demand from the time it takes to
place an order to the time the order item is depleted.
Cycle counting - CORRECT ANSWER - Counts supplies in a designated area by selecting
smaller portions of inventory items to count in a scheduled manner throughout the year.
