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CPIM - Basics of Supply Chain Management Certification Exam

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NEW QUESTION 1

An appropriate reason to carry safety stock is to protect against:

  • A. demand fluctuations before the order point is reached.
  • B. demand fluctuations after the order point is reached.
  • C. price fluctuations before the order point is reached.
  • D. price fluctuations after the order point is reached.

Answer: B

NEW QUESTION 2

Backward scheduling begins with which of the following dates?

  • A. Order receipt
  • B. Order due
  • C. Component availability
  • D. Supplier delivery

Answer: B

NEW QUESTION 3

Vendor-managed inventory is most appropriate for which of the following types of products?

  • A. Critical components with high value
  • B. Standard design products with low value
  • C. Long lead-time components with medium value
  • D. Complex design products with low value

Answer: B

NEW QUESTION 4

Which of the following factors is included in cost of goods sold?

  • A. Revenue
  • B. General and administrative expenses
  • C. Overhead
  • D. Standard cost

Answer: C

NEW QUESTION 5

Which of the following terms refers to that which "pulls" production to the constraint for processing?

  • A. Drum
  • B. Buffer
  • C. Rope
  • D. Kanban

Answer: C

NEW QUESTION 6

Which of the following capacity management techniques is used to support the production plan?

  • A. Resource planning
  • B. Capacity requirements planning
  • C. Rough-cut capacity planning
  • D. Input/output control

Answer: A

NEW QUESTION 7

Which of the following considerations should be included in product design?

  • A. Manufacturing strategy
  • B. Product pricing
  • C. Environmental sensitivity
  • D. Target markets

Answer: C

NEW QUESTION 8

Which material handling equipment is the most flexible in a distribution center?

  • A. Industrial trucks
  • B. Conveyor
  • C. Crane
  • D. Hoist

Answer: A

NEW QUESTION 9

Which of the following functions of inventory is most likely to be included in a manufacturer's finished goods?

  • A. Rework
  • B. Work in process
  • C. Anticipation
  • D. Maintenance, repair, and operations supplies (MRO)

Answer: C

NEW QUESTION 10

Increasing sales through the Internet will result in an increased demand for reverse:

  • A. auctions.
  • B. engineering.
  • C. flow scheduling.
  • D. logistics.

Answer: D

NEW QUESTION 11

Which of the following factors would reduce inventory carrying costs?

  • A. Ordering less inventory
  • B. Higher costs of working capital
  • C. Reducing ordering costs
  • D. Reducing transportation costs

Answer: A

NEW QUESTION 12

One purpose for holding inventory in distribution centers is to:

  • A. decouple the demand for goods with the supply of goods.
  • B. improve customer service by locating stock near the customer.
  • C. decrease damage to merchandise by shipping shorter distances.
  • D. absorb fluctuations in storage requirements that cannot be met at the factory.

Answer: B

NEW QUESTION 13

Which of the following production environment strategies requires unique design or significant customization?

  • A. Make-to-order
  • B. Assemble-to-order
  • C. Make-to-stock
  • D. Engineer-to-order

Answer: D

NEW QUESTION 14

Which of the following tools is considered to be one of the seven quality tools?

  • A. Gantt chart
  • B. Input/output chart
  • C. Control chart
  • D. Capacity chart

Answer: C

NEW QUESTION 15

The contribution made by an operation to the final usefulness of a product is known as:

  • A. the customer service level.
  • B. value-added.
  • C. the cost of quality.
  • D. an order winner.

Answer: B

NEW QUESTION 16

Which of the following terms refers to the practice of stopping the production line when a defect occurs?

  • A. Haiku
  • B. Arigato
  • C. Poka-yoke
  • D. Jidoka

Answer: D

NEW QUESTION 17

Service parts needs are most often determined by:

  • A. bills of material explosion.
  • B. forecasts based on prior demand.
  • C. material requirements planning (MRP) logic calculations.
  • D. analysis of lead-time requirements.

Answer: B

NEW QUESTION 18

What is the output of sales and operations planning?

  • A. Production plan
  • B. Master production schedule
  • C. Sales plan
  • D. Production order

Answer: A

NEW QUESTION 19

In the income statement, the cost of goods sold is related to the:

  • A. sales dollars.
  • B. total inventory dollars.
  • C. marketing expenses.
  • D. manufacturing expenses.

Answer: D

NEW QUESTION 20

When determining a make or buy decision, reasons to buy out would include:

  • A. accommodating large changes in volume.
  • B. maximizing resource utilization.
  • C. protecting confidential information.
  • D. maintaining workforce.

Answer: A

NEW QUESTION 21

A production rate based on customer demand is called:

  • A. cycle time.
  • B. takt time.
  • C. lead time.
  • D. queue time.

Answer: B

NEW QUESTION 22

Having the needed materials within easy reach of a subassembly process eliminates waste of:

  • A. motion.
  • B. transportation.
  • C. making defects.
  • D. stocks.

Answer: A

NEW QUESTION 23

Earliest job due date is an example of:

  • A. dispatching.
  • B. infinite scheduling.
  • C. a chase strategy.
  • D. available-to-promise.

Answer: A

NEW QUESTION 24

In which of the following environments is order-fill rate of primary importance to customer delivery expectations?

  • A. Make-to-stock
  • B. Design-to-order
  • C. Assemble-to-order
  • D. Make-to-order

Answer: A

NEW QUESTION 25
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