APIC's CPIM Part 1 Practice Exams Questions With 100% Correct Answers

APIC's CPIM Part 1 Practice Exams Questions With 100% Correct Answers The ability of a company to address the needs of and inquiries and requests from customers refers to: on-time delivery. customer service. order fill rates. customer relationship management. - answercustomer service.: Customer service is the ability of a company to address the needs of and inquiries and requests from customers. Which of the following is included in the cost of goods sold? Standard cost General and administrative expenses Revenue Overhead - answerOverhead: The cost of goods is classically defined as consisting of direct labor, direct material, and overhead. Which of the following warehouse activities involves bringing goods together and checking for omissions or errors in the order? Dispatching the shipment Picking goods Dispatching goods to storage Marshalling the shipment - answerMarshalling the shipment: When marshalling a shipment, goods making up a single order are brought together and checked for omissions or errors, and order records are updated accordingly. Picking is the process of selecting items from storage and bringing them to a marshalling area. Dispatching goods to storage is the process of sorting goods upon receipt and placing them in a storage area. Dispatching the shipment is the process of order packing, preparing shipping documents, and loading items on the correct transport vehicles. When purchasing natural products like fruit, what should the supplier agreement specify? Allowable variation in quantity. Exact delivery dates. Discounts if paying late. Exact quantity per order. - answerAllowable variation in quantity.: Specifying allowable variation in quantity for natural products is an example of the specificity needed in supplier agreements so as to avoid later confusion or disagreement. However, specifying exact delivery dates on products that depend on the weather may also not be possible. 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? Lean one-piece flow Period order quantity Fixed order quantity EOQ - answerPeriod order quantity: As a product moves from continuous to intermittent demand, a better inventory replenishment tool is a period order quantity, where inventory balances are reviewed periodically and quantity purchased up to a specific maximum quantity. In contrast, EOQ, lean one-piece flow, and fixed order quantity are all based on continuous demand characteristics. 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 Week 1 Week 2 Week 3 Week 6 - answerWeek 3: 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. 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? The manufacturer has received more orders for blue than other colors. The manufacturer is making a hedge against higher demand. There has been an error in the calculations. The manufacturer is making up for missed orders. - answerThe manufacturer is making a hedge against higher demand.: When a planning bill's percentage is higher than 100, it is a form of hedge against volatility in demand. It serves roughly the same purpose as safety stock. Because this is a planning bill, no orders have yet been received, and therefore it does not refer to received orders. Which of the following primarily focuses on ensuring that inventory records accurately represent the value of inventory? Audit Periodic inventory Cycle counting Perpetual inventory - answerPeriodic inventory: The main purpose of periodic inventory is to satisfy financial auditors that the inventory records represent the value of the inventory. A company adheres to a policy of level production for its product. What production rate will result in zero ending inventory after four periods? beginning inventory = 0 Period 1 Demand 60 Period 2 Demand 80 Period 3 Demand 40 Period 4 Demand 100 60 70 90