1
CPIM Practice Questions with Correct Answers |
Updated (100% Correct Answers)
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
© 2026 All rights reserved
,2
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
© 2026 All rights reserved
,3
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
© 2026 All rights reserved
, 4
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
What is the distinction between the distribution channel and the transaction
channel? Answer: The distribution channel is concerned with the route of goods;
the transaction channel is concerned with the transfer of ownership
© 2026 All rights reserved
CPIM Practice Questions with Correct Answers |
Updated (100% Correct Answers)
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
© 2026 All rights reserved
,2
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
© 2026 All rights reserved
,3
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
© 2026 All rights reserved
, 4
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
What is the distinction between the distribution channel and the transaction
channel? Answer: The distribution channel is concerned with the route of goods;
the transaction channel is concerned with the transfer of ownership
© 2026 All rights reserved
