CPIM Practice Questions
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: - answerAn exceptional event
Which of the following describes the UN Global Compact Management Model? -
answerFramework 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. - answerLook 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? - answerRecord 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? - answerFixed 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? - answerSafety 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? -
answerInventory control
What sets out the provisions and agreements of a contract? - answerTerms and
conditions
Which of the following is a characteristic of flow manufacturing? - answerWork centers
are dedicated to producing similar products
Resource planning takes place at which of the following levels? - answerBusiness plan
Input/Output control is a technique for monitoring the: - answerCapacity requirement
plan
If a manufacturer prioritizes avoiding production interruptions caused by supply issues,
what selection criterial should it prioritize in the supplier selection process? -
answerReliability
Which of the following tools uses mathematical algorithms or logic to perform
optimization or simulation on finite capacity scheduling - answerAdvanced planning and
scheduling
Which of thee following is a critical factor in the supplier selection process? -
answerSupplier's manufacturing capability
What is capacity requirements planning (CRP) primarily used for? - answerBalancing
work center capacity and load
A benefit of implementing electronic data interchange (EDI) with a supplier is a
reduction in: - answerData 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? - answerPurchasing
Order promising is the process of - answerMaking 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? - answerDemand 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? - answerLot for Lot
, Which of the following activities represents reverse logistics? - answerReturning goods
to the seller for repair, remanufacture, or recycling activity.
Sales and operations plans perform which of the following action? - answerReconcile all
supply, demand, and new product plans at the aggregate level and tie to the business
plan
Owner's equity is defined as: - answerThe 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 - answerCapacity
Product inventory that is accumulated by the manufacturer in advance of the peak
selling season is an example of - answerAnticipation inventory
What is the distinction between the distribution channel and the transaction channel? -
answerThe 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? - answerLoad Leveling
Which of the following is true if material and capacity resources are to be planned
effectively? - answerAll 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; -
answerBusiness plan
A repetitive pattern of demand from year to year with some periods considerably higher
than others is known as - answerSeasonality
In which accounting method for valuing inventory is the most recently received the first
to be used or sold? - answerLast in, first out
Inventory carrying cost includes: - answerThe costs of obsolescence and storage
What source of inventory loss results from material outside of specifications that makes
rework impractical? - answerScrap
What is the term for a facility, function, department, or resource whose capacity is less
than the demand placed upon it? - answerBottleneck
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: - answerAn exceptional event
Which of the following describes the UN Global Compact Management Model? -
answerFramework 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. - answerLook 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? - answerRecord 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? - answerFixed 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? - answerSafety 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? -
answerInventory control
What sets out the provisions and agreements of a contract? - answerTerms and
conditions
Which of the following is a characteristic of flow manufacturing? - answerWork centers
are dedicated to producing similar products
Resource planning takes place at which of the following levels? - answerBusiness plan
Input/Output control is a technique for monitoring the: - answerCapacity requirement
plan
If a manufacturer prioritizes avoiding production interruptions caused by supply issues,
what selection criterial should it prioritize in the supplier selection process? -
answerReliability
Which of the following tools uses mathematical algorithms or logic to perform
optimization or simulation on finite capacity scheduling - answerAdvanced planning and
scheduling
Which of thee following is a critical factor in the supplier selection process? -
answerSupplier's manufacturing capability
What is capacity requirements planning (CRP) primarily used for? - answerBalancing
work center capacity and load
A benefit of implementing electronic data interchange (EDI) with a supplier is a
reduction in: - answerData 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? - answerPurchasing
Order promising is the process of - answerMaking 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? - answerDemand 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? - answerLot for Lot
, Which of the following activities represents reverse logistics? - answerReturning goods
to the seller for repair, remanufacture, or recycling activity.
Sales and operations plans perform which of the following action? - answerReconcile all
supply, demand, and new product plans at the aggregate level and tie to the business
plan
Owner's equity is defined as: - answerThe 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 - answerCapacity
Product inventory that is accumulated by the manufacturer in advance of the peak
selling season is an example of - answerAnticipation inventory
What is the distinction between the distribution channel and the transaction channel? -
answerThe 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? - answerLoad Leveling
Which of the following is true if material and capacity resources are to be planned
effectively? - answerAll 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; -
answerBusiness plan
A repetitive pattern of demand from year to year with some periods considerably higher
than others is known as - answerSeasonality
In which accounting method for valuing inventory is the most recently received the first
to be used or sold? - answerLast in, first out
Inventory carrying cost includes: - answerThe costs of obsolescence and storage
What source of inventory loss results from material outside of specifications that makes
rework impractical? - answerScrap
What is the term for a facility, function, department, or resource whose capacity is less
than the demand placed upon it? - answerBottleneck
