CPIM Practice Questions and Answers
with solutions
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: - ANSWER An
exceptional event
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 p rinciples
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
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
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
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
,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
What sets out the provisions and agreements of a contract? - ANSWER
Terms and conditions
Which of the following is a characteristic of flow manufacturing? -
ANSWER Work centers are dedicated to producing similar products
Resource planning takes place at which of the following levels? -
ANSWER Business plan
Input/Output control is a technique for monitoring the: - ANSWER
Capacity requirement plan
If a manufacturer prioritizes avoiding production interruptions caused by
supply issues, what selection criterial should it prioritize in the supplier
selection process? - ANSWER Reliability
Which of the following tools uses mathematical algorithms or logic to
perform optimization or simulation on finite capacity scheduling -
ANSWER Advanced planning and scheduling
Which of thee following is a critical factor in the supplier selection
process? - ANSWER Supplier's manufacturing capability
, What is capacity requirements planning (CRP) primarily used for? -
ANSWER Balancing work center capacity and load
A benefit of implementing electronic data interchange (EDI) with a
supplier is a reduction in: - ANSWER Data 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? - ANSWER Purchasing
Order promising is the process of - ANSWER Making 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? - ANSWER Demand 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? - ANSWER Lot for Lot
Which of the following activities represents reverse logistics? - ANSWER
Returning goods to the seller for repair, remanufacture, or recycling
activity.
with solutions
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: - ANSWER An
exceptional event
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 p rinciples
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
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
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
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
,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
What sets out the provisions and agreements of a contract? - ANSWER
Terms and conditions
Which of the following is a characteristic of flow manufacturing? -
ANSWER Work centers are dedicated to producing similar products
Resource planning takes place at which of the following levels? -
ANSWER Business plan
Input/Output control is a technique for monitoring the: - ANSWER
Capacity requirement plan
If a manufacturer prioritizes avoiding production interruptions caused by
supply issues, what selection criterial should it prioritize in the supplier
selection process? - ANSWER Reliability
Which of the following tools uses mathematical algorithms or logic to
perform optimization or simulation on finite capacity scheduling -
ANSWER Advanced planning and scheduling
Which of thee following is a critical factor in the supplier selection
process? - ANSWER Supplier's manufacturing capability
, What is capacity requirements planning (CRP) primarily used for? -
ANSWER Balancing work center capacity and load
A benefit of implementing electronic data interchange (EDI) with a
supplier is a reduction in: - ANSWER Data 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? - ANSWER Purchasing
Order promising is the process of - ANSWER Making 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? - ANSWER Demand 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? - ANSWER Lot for Lot
Which of the following activities represents reverse logistics? - ANSWER
Returning goods to the seller for repair, remanufacture, or recycling
activity.
