CPIM ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE SUPPLY CHAIN
STUDY GUIDE
●● A3 Method
Answer: A means of compactly describing a business process
●● Abnormal Demand
Answer: Demand in any period that is outside the limits established by
management policy
●● Absorption Costing
Answer: An approach to inventory valuation in which variable costs and
a portion of fixed costs are assigned to each unit production.
●● Acceptable Quality Level (AQL)
Answer: When a continuing series of lots is considered, a quality level
that, for the purposes of sampling inspection, is the limit of a satisfactory
process average
●● Acceptance Sampling
Answer: the process of sampling a portion of goods for inspection rather
than examining the entire lot
,●● Action Message
Answer: An output of a system that identifies the need for, and the type
of action to be taken to correct, a current or potential problem.
●● Activation
Answer: Putting a resource to work
●● Activity-Based Cost Accounting
Answer: A cost accounting system that accumulates costs based on
activities performed and then uses cost drivers to allocate these costs to
products or other bases such as customers, markets, or projects. It
attempts to allocate overhead costs on a more realistic basis than by
using direct labor or machine hours
●● Activity-Based Management (ABM)
Answer: The use of activity-based costing information about cost pools
and drivers, activity analysis, and business processes to identify business
strategies; improve design, manufacturing, and distribution; and remove
waste from operations
●● Actual Costs
Answer: The labor, material, and associated overhead costs that are
charged against a job as it moves through the production process
,●● Actual Demand
Answer: Composed of customer orders (and often allocation of items,
ingredients or raw materials to production or distribution). Nets against
or chosen over a time horizon.
●● Adaptive Smoothing
Answer: A form of exponential smoothing in which the smoothing
constant is automatically adjusted as a function of forecast error
measurement
●● Adjustable Capacity
Answer: Capacity, such as labor or tools, that can be changed in the
short term
●● Advanced planning and scheduling (APS)/Advanced Planning
Systems (APS)
Answer: Techniques that deal with analysis and planning of logistics and
manufacturing during short, intermediate, and long-term time periods.
●● Aggregate Forecast
Answer: An estimate of sales, often time-phrased, for a grouping of
products or product families produced by a facility or firm. Stated in
terms of units, dollars, or both, the aggregate forecast is used for sales
and production planning purposes
, ●● Aggregate Plan
Answer: A plan that includes budgeted levels of finished goods,
inventory, production backlogs, and changes in the workforce to support
the production strategy. Aggregated information rather than product
information is used
●● Agility
Answer: The ability to quickly plan, source, make, and deliver to adapt
and respond to changes in the competitive environment. It is a SCOR
performance attribute that includes product or service flexibility (speedy
introduction of new products and services), mix flexibility (ability to
quickly change products or services offered), volume flexibility (ability
to service large order quantities), and delivery flexibility (ability to
quickly change delivery dates to meet new requirements)
●● Allocation
Answer: The classification of resources or items quantities that have
been assigned to specific orders but have not yet been released from the
stockroom to production. It is an "uncashed" stockroom requisition. 2. A
process used to distribute material in short supply
●● Alpha Factor/Smoothing Constant
Answer: In exponential smoothing, the weighting factor that is applied
to the most recent demand, observation, or error
ANSWERS COMPLETE SUPPLY CHAIN
STUDY GUIDE
●● A3 Method
Answer: A means of compactly describing a business process
●● Abnormal Demand
Answer: Demand in any period that is outside the limits established by
management policy
●● Absorption Costing
Answer: An approach to inventory valuation in which variable costs and
a portion of fixed costs are assigned to each unit production.
●● Acceptable Quality Level (AQL)
Answer: When a continuing series of lots is considered, a quality level
that, for the purposes of sampling inspection, is the limit of a satisfactory
process average
●● Acceptance Sampling
Answer: the process of sampling a portion of goods for inspection rather
than examining the entire lot
,●● Action Message
Answer: An output of a system that identifies the need for, and the type
of action to be taken to correct, a current or potential problem.
●● Activation
Answer: Putting a resource to work
●● Activity-Based Cost Accounting
Answer: A cost accounting system that accumulates costs based on
activities performed and then uses cost drivers to allocate these costs to
products or other bases such as customers, markets, or projects. It
attempts to allocate overhead costs on a more realistic basis than by
using direct labor or machine hours
●● Activity-Based Management (ABM)
Answer: The use of activity-based costing information about cost pools
and drivers, activity analysis, and business processes to identify business
strategies; improve design, manufacturing, and distribution; and remove
waste from operations
●● Actual Costs
Answer: The labor, material, and associated overhead costs that are
charged against a job as it moves through the production process
,●● Actual Demand
Answer: Composed of customer orders (and often allocation of items,
ingredients or raw materials to production or distribution). Nets against
or chosen over a time horizon.
●● Adaptive Smoothing
Answer: A form of exponential smoothing in which the smoothing
constant is automatically adjusted as a function of forecast error
measurement
●● Adjustable Capacity
Answer: Capacity, such as labor or tools, that can be changed in the
short term
●● Advanced planning and scheduling (APS)/Advanced Planning
Systems (APS)
Answer: Techniques that deal with analysis and planning of logistics and
manufacturing during short, intermediate, and long-term time periods.
●● Aggregate Forecast
Answer: An estimate of sales, often time-phrased, for a grouping of
products or product families produced by a facility or firm. Stated in
terms of units, dollars, or both, the aggregate forecast is used for sales
and production planning purposes
, ●● Aggregate Plan
Answer: A plan that includes budgeted levels of finished goods,
inventory, production backlogs, and changes in the workforce to support
the production strategy. Aggregated information rather than product
information is used
●● Agility
Answer: The ability to quickly plan, source, make, and deliver to adapt
and respond to changes in the competitive environment. It is a SCOR
performance attribute that includes product or service flexibility (speedy
introduction of new products and services), mix flexibility (ability to
quickly change products or services offered), volume flexibility (ability
to service large order quantities), and delivery flexibility (ability to
quickly change delivery dates to meet new requirements)
●● Allocation
Answer: The classification of resources or items quantities that have
been assigned to specific orders but have not yet been released from the
stockroom to production. It is an "uncashed" stockroom requisition. 2. A
process used to distribute material in short supply
●● Alpha Factor/Smoothing Constant
Answer: In exponential smoothing, the weighting factor that is applied
to the most recent demand, observation, or error
