CPIM QUESTIONS UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

CPIM QUESTIONS UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS

Question:
1. Creating an extensive distribution system in order to reduce shipment time to customers conflicts with
which of the following objectives?
Answer:
Lowest distribution costs

Question:
2. 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

Question:
3. Which originated with the department or person who will be the ultimate user
Answer:
Purchase requisition

Question:
4. 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

Question:
5. Which tends to increase when shipments are by full truckload rather than less than truckload?
Answer:
Carrying Costs

Question:
6. 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:
Answer:
An exceptional event

Question:
7. Which of the following describes the UN Global Compact Management Model?
Answer:
Framework for guiding companies through the process of formally committing to, assessing, defining,
implementing, measuring, and communicating the UN Global Compact and its principles

,Question:
8. 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.
Answer:
Look for a fully utilized work center with work in process inventory accumulating before it but low work
center utilization of direct downstream work center

Question:
9. Which of the following is a key performance indicator critical to manufacturing execution and an
accurate reflection of the company's assets?
Answer:
Record accuracy

Question:
10. 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?
Answer:
Fixed reorder cycle

Question:
11. 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?
Answer:
Safety lead time

Question:
12. 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?
Answer:
Inventory control

Question:
13. What sets out the provisions and agreements of a contract?
Answer:
Terms and conditions

Question:
14. Which of the following is a characteristic of flow manufacturing?
Answer:
Work centers are dedicated to producing similar products

Question:
15. Resource planning takes place at which of the following levels?
Answer:
Business plan

,Question:
16. Input/Output control is a technique for monitoring the:
Answer:
Capacity requirement plan

Question:
17. If a manufacturer prioritizes avoiding production interruptions caused by supply issues, what selection
criterial should it prioritize in the supplier selection process?
Answer:
Reliability

Question:
18. Which of the following tools uses mathematical algorithms or logic to perform optimization or
simulation on finite capacity scheduling
Answer:
Advanced planning and scheduling

Question:
19. Which of thee following is a critical factor in the supplier selection process?
Answer:
Supplier's manufacturing capability

Question:
20. What is capacity requirements planning (CRP) primarily used for?
Answer:
Balancing work center capacity and load

Question:
21. A benefit of implementing electronic data interchange (EDI) with a supplier is a reduction in:
Answer:
Data Errors

Question:
22. 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?
Answer:
Purchasing

Question:
23. Order promising is the process of
Answer:
Making a delivery commitment

Question:
24. 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?

, Answer:
Demand planning

Question:
25. 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?
Answer:
Lot for Lot

Question:
26. Which of the following activities represents reverse logistics?
Answer:
Returning goods to the seller for repair, remanufacture, or recycling activity.

Question:
27. Sales and operations plans perform which of the following action?
Answer:
Reconcile all supply, demand, and new product plans at the aggregate level and tie to the business plan

Question:
28. Owner's equity is defined as:
Answer:
The residual claim by the company's owners or shareholders to the company's assets less its liabilities.

Question:
29. A workstation can produce 100 pencils per hour and possibly 20,000 per year. This is a measure of the
workstations hourly and annual
Answer:
Capacity

Question:
30. Product inventory that is accumulated by the manufacturer in advance of the peak selling season is an
example of
Answer:
Anticipation inventory

Question:
31. What is the distinction between the distribution channel and the transaction channel?
Answer:
The distribution channel is concerned with the route of goods; the transaction channel is concerned with
the transfer of ownership

Question:
32. 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?