CPIM Pocket Prep Exam Practice
Questions and Answers
What is NOT a characteristic of a part ordered in lot-for-lot quantities?
A) Highly perishable
B) C items in ABC classification to level out production
C) A items in ABC classification
D) Items consuming large amounts of space - ANS-B) C items in ABC classification to
level out production
A company's beginning inventory is 400 and its desired ending inventory is 500. The
sales forecast over the next five months is 400, 450, 350, 500, 400. What should be the
monthly level-loaded production rate?
A) 440
B) 400
C) 420
D) 500 - ANS-A) 440
If a work center has 4 machines operated 16 hours a day, 7 days a week, what is the
available time?
A) 160 hours per week
B) 224 hours per week
C) 320 hours per week
D) 448 hours per week - ANS-D) 448 hours per week
What is the easiest way for a company to quickly increase production to meet a
customer request?
A) Hire more workers
B) Work overtime
C) Contract temporary workers
D) Subcontract the work - ANS-B) Work overtime
The theory of constraints (TOC) describes its scheduling system as a Drum-Buffer-
Rope. What does rope refer to?
A) The time that inventory protects constraints
B) The pace of production
C) The process of improving the operation performance
D) The production pulled to the constraint for processing - ANS-D) The production
pulled to the constraint for processing
Which phase of the product lifecycle is the riskiest and MOST expensive phase?
,A) Maturity phase
B) Growth phase
C) Introduction phase
D) Decline phase - ANS-C) Introduction phase
A pharmacy uses a card that contains the medication's order number, NDC number,
and the quantity that must be maintained within the pharmacy to alert the inventory tech
when the medication should be reordered.
What type of order point system is the pharmacy using?
A) Two-bin system
B) Perpetual inventory record system
C) Periodic review system
D) Kanban system - ANS-D) Kanban system
The annual demand for umbrellas is 26,000 units, ordered in quantities of 2,600. With a
one-week lead time and safety stock of 125 units, what is the order point, assuming
consistent demand?
A) 10
B) 625
C) 225
D) 2,600 - ANS-B) 625
Critical ratio is the index that shows the priority of an order relative to other orders in a
work center. If a critical ratio is equal to one, what does it mean?
A) The order is ahead of schedule
B) The order is behind schedule
C) The order is on schedule
D) The order is already late - ANS-C) The order is on schedule
According to Shigeo Shingo, what is a differentiator between an error and a defect?
A) Defects cause errors
B) Errors cause defects
C) Errors will eventually self-correct
D) Defects will eventually self-correct - ANS-B) Errors cause defects
Ideally, inventory accuracy should be which of the following?
A) 85%
B) 96%
C) 100%
D) 75% - ANS-C) 100%
SKUs are used to control individual items in an inventory. What does the acronym SKU
represent?
A) Stock Keeping Unit
B) Serial Key Utilization
,C) System Knowledge Unit
D) Standard Key Utilization - ANS-A) Stock Keeping Unit
If the seasonal index for swimsuits in March is 1.05 and the average demand is 80,
what is the seasonal demand for swimsuits?
A) 76
B) 84
C) 70
D) 88 - ANS-B) 84
Which department is responsible for new product development?
A) Marketing
B) Engineering
C) Finance
D) Operations - ANS-B) Engineering
Which of the following is defined by minimum customer expectations for lead times or
other specifics?
A) Demand lead time
B) Order winners
C) Customer expectations
D) Order qualifiers - ANS-D) Order qualifiers
Which of the following is NOT a valid reason to release a material requirements planned
order early?
A) Production capacity is projected to be limited in the near team
B) There is potential for material shortages in the near term
C) The warehouse is under-utilized
D) Management wants to use safety lead-time instead of safety stock - ANS-C) The
warehouse is under-utilized
During which phase of the product lifecycle do companies start making improvements to
the existing product or introducing new products?
A) Introduction phase
B) Decline phase
C) Growth phase
D) Maturity phase - ANS-B) Decline phase
Inventory is known to decouple which of the following?
A) Customer orders from factory deliveries
B) Production plans from MPS
C) RCCP from capacity plans
D) Supply from demand - ANS-D) Supply from demand
Management determined that four stockouts a year were permitted for toolsets with a
safety factor of 1.75. The annual demand for toolsets is 50,000 units, they are ordered
, in quantities of 500, and the lead time standard deviation is 250 units with the lead time
being two weeks.
Using this information, what should the order point be (round to the nearest whole
number)?
A) 200
B) 2,361
C) 750
D) 5,175 - ANS-B) 2,361
An asset is a tangible or intangible item that adds value and includes all EXCEPT which
of the following?
A) Inventory
B) Accounts payable
C) Machinery
D) Patent - ANS-C) Machinery
Which of the following will NOT affect available capacity at the capacity requirements
planning level?
A) Bill of materials
B) Routings
C) Work center data
D) Order dates and quantities - ANS-D) Order dates and quantities
In a lean environment, quality MUST be the responsibility of whom?
A) A material handler
B) The inspector
C) Upper management
D) The operator - ANS-D) The operator
Owners' equity is the difference between which of the following?
A) Assets and liabilities
B) Revenue and expenses
C) Capital and earnings
D) Cash and accounts receivable - ANS-A) Assets and liabilities
How does capacity requirements planning at the business level help customer service?
A) Predicts sales from all demand channels
B) Uses bill of materials (BOM) to ensure on-time replenishment of raw materials
C) Ensures resources are available to meet customer delivery expectations
D) Streamlines the release of purchase orders to suppliers - ANS-C) Ensures resources
are available to meet customer delivery expectations
All EXCEPT which of the following are considered when establishing the MPS?
A) Efficient final assembly
B) Efficient resource allocation
Questions and Answers
What is NOT a characteristic of a part ordered in lot-for-lot quantities?
A) Highly perishable
B) C items in ABC classification to level out production
C) A items in ABC classification
D) Items consuming large amounts of space - ANS-B) C items in ABC classification to
level out production
A company's beginning inventory is 400 and its desired ending inventory is 500. The
sales forecast over the next five months is 400, 450, 350, 500, 400. What should be the
monthly level-loaded production rate?
A) 440
B) 400
C) 420
D) 500 - ANS-A) 440
If a work center has 4 machines operated 16 hours a day, 7 days a week, what is the
available time?
A) 160 hours per week
B) 224 hours per week
C) 320 hours per week
D) 448 hours per week - ANS-D) 448 hours per week
What is the easiest way for a company to quickly increase production to meet a
customer request?
A) Hire more workers
B) Work overtime
C) Contract temporary workers
D) Subcontract the work - ANS-B) Work overtime
The theory of constraints (TOC) describes its scheduling system as a Drum-Buffer-
Rope. What does rope refer to?
A) The time that inventory protects constraints
B) The pace of production
C) The process of improving the operation performance
D) The production pulled to the constraint for processing - ANS-D) The production
pulled to the constraint for processing
Which phase of the product lifecycle is the riskiest and MOST expensive phase?
,A) Maturity phase
B) Growth phase
C) Introduction phase
D) Decline phase - ANS-C) Introduction phase
A pharmacy uses a card that contains the medication's order number, NDC number,
and the quantity that must be maintained within the pharmacy to alert the inventory tech
when the medication should be reordered.
What type of order point system is the pharmacy using?
A) Two-bin system
B) Perpetual inventory record system
C) Periodic review system
D) Kanban system - ANS-D) Kanban system
The annual demand for umbrellas is 26,000 units, ordered in quantities of 2,600. With a
one-week lead time and safety stock of 125 units, what is the order point, assuming
consistent demand?
A) 10
B) 625
C) 225
D) 2,600 - ANS-B) 625
Critical ratio is the index that shows the priority of an order relative to other orders in a
work center. If a critical ratio is equal to one, what does it mean?
A) The order is ahead of schedule
B) The order is behind schedule
C) The order is on schedule
D) The order is already late - ANS-C) The order is on schedule
According to Shigeo Shingo, what is a differentiator between an error and a defect?
A) Defects cause errors
B) Errors cause defects
C) Errors will eventually self-correct
D) Defects will eventually self-correct - ANS-B) Errors cause defects
Ideally, inventory accuracy should be which of the following?
A) 85%
B) 96%
C) 100%
D) 75% - ANS-C) 100%
SKUs are used to control individual items in an inventory. What does the acronym SKU
represent?
A) Stock Keeping Unit
B) Serial Key Utilization
,C) System Knowledge Unit
D) Standard Key Utilization - ANS-A) Stock Keeping Unit
If the seasonal index for swimsuits in March is 1.05 and the average demand is 80,
what is the seasonal demand for swimsuits?
A) 76
B) 84
C) 70
D) 88 - ANS-B) 84
Which department is responsible for new product development?
A) Marketing
B) Engineering
C) Finance
D) Operations - ANS-B) Engineering
Which of the following is defined by minimum customer expectations for lead times or
other specifics?
A) Demand lead time
B) Order winners
C) Customer expectations
D) Order qualifiers - ANS-D) Order qualifiers
Which of the following is NOT a valid reason to release a material requirements planned
order early?
A) Production capacity is projected to be limited in the near team
B) There is potential for material shortages in the near term
C) The warehouse is under-utilized
D) Management wants to use safety lead-time instead of safety stock - ANS-C) The
warehouse is under-utilized
During which phase of the product lifecycle do companies start making improvements to
the existing product or introducing new products?
A) Introduction phase
B) Decline phase
C) Growth phase
D) Maturity phase - ANS-B) Decline phase
Inventory is known to decouple which of the following?
A) Customer orders from factory deliveries
B) Production plans from MPS
C) RCCP from capacity plans
D) Supply from demand - ANS-D) Supply from demand
Management determined that four stockouts a year were permitted for toolsets with a
safety factor of 1.75. The annual demand for toolsets is 50,000 units, they are ordered
, in quantities of 500, and the lead time standard deviation is 250 units with the lead time
being two weeks.
Using this information, what should the order point be (round to the nearest whole
number)?
A) 200
B) 2,361
C) 750
D) 5,175 - ANS-B) 2,361
An asset is a tangible or intangible item that adds value and includes all EXCEPT which
of the following?
A) Inventory
B) Accounts payable
C) Machinery
D) Patent - ANS-C) Machinery
Which of the following will NOT affect available capacity at the capacity requirements
planning level?
A) Bill of materials
B) Routings
C) Work center data
D) Order dates and quantities - ANS-D) Order dates and quantities
In a lean environment, quality MUST be the responsibility of whom?
A) A material handler
B) The inspector
C) Upper management
D) The operator - ANS-D) The operator
Owners' equity is the difference between which of the following?
A) Assets and liabilities
B) Revenue and expenses
C) Capital and earnings
D) Cash and accounts receivable - ANS-A) Assets and liabilities
How does capacity requirements planning at the business level help customer service?
A) Predicts sales from all demand channels
B) Uses bill of materials (BOM) to ensure on-time replenishment of raw materials
C) Ensures resources are available to meet customer delivery expectations
D) Streamlines the release of purchase orders to suppliers - ANS-C) Ensures resources
are available to meet customer delivery expectations
All EXCEPT which of the following are considered when establishing the MPS?
A) Efficient final assembly
B) Efficient resource allocation
