CPIM PRACTICE QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026
Creating an extensive distribution system in order to reduce shipment time to customers
conflicts with which of the following objectives? - Answers Lowest distribution costs
Which is set up when a product is available from several sources but only one source gets all of
the business? - Answers Single-Source Supplier
Which originated with the department or person who will be the ultimate user - Answers
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? - Answers Total cost of ownership
Which tends to increase when shipments are by full truckload rather than less than truckload? -
Answers 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: -
Answers An exceptional event
Which of the following describes the UN Global Compact Management Model? - Answers
Framework for guiding companies through the process of formally committing to, assessing,
defining, implementing, measuring, and communicating the UN Global Compact and its
principles
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. - Answers 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? - Answers 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? - Answers 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? - Answers 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? - Answers Inventory
control
,What sets out the provisions and agreements of a contract? - Answers Terms and conditions
Which of the following is a characteristic of flow manufacturing? - Answers Work centers are
dedicated to producing similar products
Resource planning takes place at which of the following levels? - Answers Business plan
Input/Output control is a technique for monitoring the: - Answers 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? - Answers Reliability
Which of the following tools uses mathematical algorithms or logic to perform optimization or
simulation on finite capacity scheduling - Answers Advanced planning and scheduling
Which of thee following is a critical factor in the supplier selection process? - Answers
Supplier's manufacturing capability
What is capacity requirements planning (CRP) primarily used for? - Answers Balancing work
center capacity and load
A benefit of implementing electronic data interchange (EDI) with a supplier is a reduction in: -
Answers 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? -
Answers Purchasing
Order promising is the process of - Answers 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? - Answers 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? - Answers Lot for Lot
Which of the following activities represents reverse logistics? - Answers Returning goods to the
seller for repair, remanufacture, or recycling activity.
Sales and operations plans perform which of the following action? - Answers Reconcile all
supply, demand, and new product plans at the aggregate level and tie to the business plan
Owner's equity is defined as: - Answers The residual claim by the company's owners or
shareholders to the company's assets less its liabilities.
, A workstation can produce 100 pencils per hour and possibly 20,000 per year. This is a measure
of the workstations hourly and annual - Answers Capacity
Product inventory that is accumulated by the manufacturer in advance of the peak selling
season is an example of - Answers Anticipation inventory
What is the distinction between the distribution channel and the transaction channel? - Answers
The distribution channel is concerned with the route of goods; the transaction channel is
concerned with the transfer of ownership
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? - Answers Load Leveling
Which of the following is true if material and capacity resources are to be planned effectively? -
Answers All sources of demand must be identifies
A statement of lone-range strategy and revenue, cost, and profit objectives usually
accompanied by budgets, a projected balance sheet, and cash flow is called a; - Answers
Business plan
A repetitive pattern of demand from year to year with some periods considerably higher than
others is known as - Answers Seasonality
In which accounting method for valuing inventory is the most recently received the first to be
used or sold? - Answers Last in, first out
Inventory carrying cost includes: - Answers The costs of obsolescence and storage
What source of inventory loss results from material outside of specifications that makes rework
impractical? - Answers Scrap
What is the term for a facility, function, department, or resource whose capacity is less than the
demand placed upon it? - Answers Bottleneck
When customer orders are received in a make to stock environment, they consume: - Answers
Finished goods
Preventive maintenance - comprising adjustments, replacements, and basic cleanliness - is
used to forestall machine breakdowns. With regular preventive maintenance, what can be
expected to happen to the cost of failure and poor quality? - Answers It will be reduced in the
long term
In the theory of constrains (TOC) what is the term "the weakest link" used to describe? -
Answers Resources with the least throughput in the system
Which of the following types of files is a key input to material requirements planning (MRP) -
Creating an extensive distribution system in order to reduce shipment time to customers
conflicts with which of the following objectives? - Answers Lowest distribution costs
Which is set up when a product is available from several sources but only one source gets all of
the business? - Answers Single-Source Supplier
Which originated with the department or person who will be the ultimate user - Answers
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? - Answers Total cost of ownership
Which tends to increase when shipments are by full truckload rather than less than truckload? -
Answers 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: -
Answers An exceptional event
Which of the following describes the UN Global Compact Management Model? - Answers
Framework for guiding companies through the process of formally committing to, assessing,
defining, implementing, measuring, and communicating the UN Global Compact and its
principles
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. - Answers 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? - Answers 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? - Answers 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? - Answers 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? - Answers Inventory
control
,What sets out the provisions and agreements of a contract? - Answers Terms and conditions
Which of the following is a characteristic of flow manufacturing? - Answers Work centers are
dedicated to producing similar products
Resource planning takes place at which of the following levels? - Answers Business plan
Input/Output control is a technique for monitoring the: - Answers 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? - Answers Reliability
Which of the following tools uses mathematical algorithms or logic to perform optimization or
simulation on finite capacity scheduling - Answers Advanced planning and scheduling
Which of thee following is a critical factor in the supplier selection process? - Answers
Supplier's manufacturing capability
What is capacity requirements planning (CRP) primarily used for? - Answers Balancing work
center capacity and load
A benefit of implementing electronic data interchange (EDI) with a supplier is a reduction in: -
Answers 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? -
Answers Purchasing
Order promising is the process of - Answers 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? - Answers 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? - Answers Lot for Lot
Which of the following activities represents reverse logistics? - Answers Returning goods to the
seller for repair, remanufacture, or recycling activity.
Sales and operations plans perform which of the following action? - Answers Reconcile all
supply, demand, and new product plans at the aggregate level and tie to the business plan
Owner's equity is defined as: - Answers The residual claim by the company's owners or
shareholders to the company's assets less its liabilities.
, A workstation can produce 100 pencils per hour and possibly 20,000 per year. This is a measure
of the workstations hourly and annual - Answers Capacity
Product inventory that is accumulated by the manufacturer in advance of the peak selling
season is an example of - Answers Anticipation inventory
What is the distinction between the distribution channel and the transaction channel? - Answers
The distribution channel is concerned with the route of goods; the transaction channel is
concerned with the transfer of ownership
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? - Answers Load Leveling
Which of the following is true if material and capacity resources are to be planned effectively? -
Answers All sources of demand must be identifies
A statement of lone-range strategy and revenue, cost, and profit objectives usually
accompanied by budgets, a projected balance sheet, and cash flow is called a; - Answers
Business plan
A repetitive pattern of demand from year to year with some periods considerably higher than
others is known as - Answers Seasonality
In which accounting method for valuing inventory is the most recently received the first to be
used or sold? - Answers Last in, first out
Inventory carrying cost includes: - Answers The costs of obsolescence and storage
What source of inventory loss results from material outside of specifications that makes rework
impractical? - Answers Scrap
What is the term for a facility, function, department, or resource whose capacity is less than the
demand placed upon it? - Answers Bottleneck
When customer orders are received in a make to stock environment, they consume: - Answers
Finished goods
Preventive maintenance - comprising adjustments, replacements, and basic cleanliness - is
used to forestall machine breakdowns. With regular preventive maintenance, what can be
expected to happen to the cost of failure and poor quality? - Answers It will be reduced in the
long term
In the theory of constrains (TOC) what is the term "the weakest link" used to describe? -
Answers Resources with the least throughput in the system
Which of the following types of files is a key input to material requirements planning (MRP) -
