CPIM PRACTICE QUESTIONS AND ANSWERS | 2026
UPDATE | WITH COMPLETE SOLUTION!!
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 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. 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.
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
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.
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
Product inventory that is accumulated by the manufacturer in advance of the
peak selling season is an example of Answer - Anticipation inventory
UPDATE | WITH COMPLETE SOLUTION!!
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 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. 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.
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
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.
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
Product inventory that is accumulated by the manufacturer in advance of the
peak selling season is an example of Answer - Anticipation inventory
