APICS CPIM Exam 1 questions and
answers with solutions
ABC classification - ANSWER Process of classifying items in descending
order based on annual dollar volume or some other criteria. The list is
then split into 3 classes - A, B, and C. A represents 10-20% of items but
50-70% of dollar volume; B represents 20% of items and 20% of dollar
volume; C represents 60-70% of items but 10-30% of dollar volume. This
principle states that effort and money can be saved by applying looser
controls to the low dollar volume items (C class) than the higher dollar
volume items (A & B classes) and applies to inventory, purchasing, sales,
etc.
Advance ship notice (ASN) - ANSWER Electronic data interchange (EDI)
notification of shipment of goods
Andon - ANSWER Electronic board that provides visibility of floor status
and gives info to help coordinate efforts linked to work centers; green
light = running, red light = stop, yellow light = needs attention
Anticipation inventories - ANSWER Any additional inventory above basic
pipeline stock to cover projected trends of increased sales, planned
promo programs, seasonal fluctuation, plant shutdowns, and vacations
,Assemble-2-order - ANSWER Production environment where a good or
service can be assembled after receipt of a customer's order. The key
components (or ingredients) used in assembly or finishing process are
planned and stocked in anticipation of a customer o rder. Receipt of
order initiates assembly of the customized product. Useful strategy
when a large number of end products can be assembled from common
components
Available inventory - ANSWER On-hand inventory balance minus
allocations, reservations, backorders, and quantities held for quality
problems
Backflush - ANSWER Method of inventory bookkeeping where the book
inventory is automatically reduced after completion of activity on
component's upper-level parent item based on what should have been
used as specified on the BOM and allocation records; dis advantage is
difference between book inventory and physical OH inventory
Backhauling - ANSWER Process of transportation returning from original
destination point to point of origin; can be full, partial, or empty load
Backlog - ANSWER All customer orders received but not yet shipped
(open orders or order board)
Backorder - ANSWER Unfulfilled customer order or commitment. An
immediate (or past due) demand against an item whose inventory is
insufficient to satisfy the demand
, Back scheduling - ANSWER Technique for calculating operation start
dates and due dates; start with order due date and work backwards to
calculate required start date and/or due dates for each operation
Batch - ANSWER Qty scheduled to be produced or in production; type of
mfg process used to produce items with similar designs & cover wide
range of order volumes; items ordered are of a repeat nature
Bill of lading - ANSWER Document issued by a carrier which details a
shipment of merchandise and gives title of that shipment to a specified
party.
Bill of material (BOM) - ANSWER Listing of all the subassemblies,
intermediates, parts, and raw materials that go into a parent assembly
showing the quantity of each required to make an assembly; used in
conjunction with the master production schedule to determine the items
for which purchase requisitions and production orders must be released;
list of all the materials needed to make one production run of a product,
by a contract manufacturer, of piece parts/components for its customers
Bonded warehouse - ANSWER Buildings or parts of a building designated
by Sec of Treasury for storing imported goods, operated under
supervision of US Customs
Bottleneck - ANSWER Facility, function, department, or resource whose
capacity is less than the demand placed upon it; machine or work center
answers with solutions
ABC classification - ANSWER Process of classifying items in descending
order based on annual dollar volume or some other criteria. The list is
then split into 3 classes - A, B, and C. A represents 10-20% of items but
50-70% of dollar volume; B represents 20% of items and 20% of dollar
volume; C represents 60-70% of items but 10-30% of dollar volume. This
principle states that effort and money can be saved by applying looser
controls to the low dollar volume items (C class) than the higher dollar
volume items (A & B classes) and applies to inventory, purchasing, sales,
etc.
Advance ship notice (ASN) - ANSWER Electronic data interchange (EDI)
notification of shipment of goods
Andon - ANSWER Electronic board that provides visibility of floor status
and gives info to help coordinate efforts linked to work centers; green
light = running, red light = stop, yellow light = needs attention
Anticipation inventories - ANSWER Any additional inventory above basic
pipeline stock to cover projected trends of increased sales, planned
promo programs, seasonal fluctuation, plant shutdowns, and vacations
,Assemble-2-order - ANSWER Production environment where a good or
service can be assembled after receipt of a customer's order. The key
components (or ingredients) used in assembly or finishing process are
planned and stocked in anticipation of a customer o rder. Receipt of
order initiates assembly of the customized product. Useful strategy
when a large number of end products can be assembled from common
components
Available inventory - ANSWER On-hand inventory balance minus
allocations, reservations, backorders, and quantities held for quality
problems
Backflush - ANSWER Method of inventory bookkeeping where the book
inventory is automatically reduced after completion of activity on
component's upper-level parent item based on what should have been
used as specified on the BOM and allocation records; dis advantage is
difference between book inventory and physical OH inventory
Backhauling - ANSWER Process of transportation returning from original
destination point to point of origin; can be full, partial, or empty load
Backlog - ANSWER All customer orders received but not yet shipped
(open orders or order board)
Backorder - ANSWER Unfulfilled customer order or commitment. An
immediate (or past due) demand against an item whose inventory is
insufficient to satisfy the demand
, Back scheduling - ANSWER Technique for calculating operation start
dates and due dates; start with order due date and work backwards to
calculate required start date and/or due dates for each operation
Batch - ANSWER Qty scheduled to be produced or in production; type of
mfg process used to produce items with similar designs & cover wide
range of order volumes; items ordered are of a repeat nature
Bill of lading - ANSWER Document issued by a carrier which details a
shipment of merchandise and gives title of that shipment to a specified
party.
Bill of material (BOM) - ANSWER Listing of all the subassemblies,
intermediates, parts, and raw materials that go into a parent assembly
showing the quantity of each required to make an assembly; used in
conjunction with the master production schedule to determine the items
for which purchase requisitions and production orders must be released;
list of all the materials needed to make one production run of a product,
by a contract manufacturer, of piece parts/components for its customers
Bonded warehouse - ANSWER Buildings or parts of a building designated
by Sec of Treasury for storing imported goods, operated under
supervision of US Customs
Bottleneck - ANSWER Facility, function, department, or resource whose
capacity is less than the demand placed upon it; machine or work center
