CPIM Practice Exam Questions and
Answers 100% correct already passed
Sales and Operations Planning (S&OP) - correct answer ✔✔To balance supply and demand at an
aggregate level
Bullwhip effect - correct answer ✔✔Increased demand variability as you move up the supply
chain
Reorder point formula - correct answer ✔✔(Average demand × Lead time) + Safety stock
Net requirements in MRP - correct answer ✔✔Gross requirements minus on-hand inventory
and scheduled receipts
Primary objective of lean manufacturing - correct answer ✔✔Eliminate waste and improve flow
Forecasting method for seasonal patterns - correct answer ✔✔Exponential smoothing with
trend and seasonality
Economic Order Quantity (EOQ) formula - correct answer ✔✔√(2DS/H)
Difference between capacity and load - correct answer ✔✔Capacity is what you have; load is
what you need
Purpose of rough-cut capacity planning (RCCP) - correct answer ✔✔To validate the master
production schedule
, Seven wastes in lean manufacturing - correct answer ✔✔Standardization is NOT one of the
seven wastes
Primary purpose of safety stock - correct answer ✔✔To protect against uncertainty in demand
and supply
ABC analysis Class A items - correct answer ✔✔20% of items, 80% of value
Time fence in master scheduling - correct answer ✔✔A period during which changes require
authorization
Production strategy for peak demand - correct answer ✔✔Level strategy builds inventory in
advance of peak demand
Benefit of vendor-managed inventory (VMI) - correct answer ✔✔Improved inventory visibility
and reduced stockouts
Critical path in project management - correct answer ✔✔The longest path that determines
project duration
Purpose of distribution requirements planning (DRP) - correct answer ✔✔To manage inventory
and distribution of products
Production schedules - correct answer ✔✔To plan production schedules
Warehouse capacity - correct answer ✔✔To manage warehouse capacity
Inventory replenishment - correct answer ✔✔To coordinate inventory replenishment across
distribution network
Answers 100% correct already passed
Sales and Operations Planning (S&OP) - correct answer ✔✔To balance supply and demand at an
aggregate level
Bullwhip effect - correct answer ✔✔Increased demand variability as you move up the supply
chain
Reorder point formula - correct answer ✔✔(Average demand × Lead time) + Safety stock
Net requirements in MRP - correct answer ✔✔Gross requirements minus on-hand inventory
and scheduled receipts
Primary objective of lean manufacturing - correct answer ✔✔Eliminate waste and improve flow
Forecasting method for seasonal patterns - correct answer ✔✔Exponential smoothing with
trend and seasonality
Economic Order Quantity (EOQ) formula - correct answer ✔✔√(2DS/H)
Difference between capacity and load - correct answer ✔✔Capacity is what you have; load is
what you need
Purpose of rough-cut capacity planning (RCCP) - correct answer ✔✔To validate the master
production schedule
, Seven wastes in lean manufacturing - correct answer ✔✔Standardization is NOT one of the
seven wastes
Primary purpose of safety stock - correct answer ✔✔To protect against uncertainty in demand
and supply
ABC analysis Class A items - correct answer ✔✔20% of items, 80% of value
Time fence in master scheduling - correct answer ✔✔A period during which changes require
authorization
Production strategy for peak demand - correct answer ✔✔Level strategy builds inventory in
advance of peak demand
Benefit of vendor-managed inventory (VMI) - correct answer ✔✔Improved inventory visibility
and reduced stockouts
Critical path in project management - correct answer ✔✔The longest path that determines
project duration
Purpose of distribution requirements planning (DRP) - correct answer ✔✔To manage inventory
and distribution of products
Production schedules - correct answer ✔✔To plan production schedules
Warehouse capacity - correct answer ✔✔To manage warehouse capacity
Inventory replenishment - correct answer ✔✔To coordinate inventory replenishment across
distribution network
