Question 1

Economic order quantity (EOQ) is best applied when the:

Accepted Answer

A)  product is make-to-order. 
B)  product shelf life is short. 
C)  production process is continuous. 
D)  consumption rate is uniform. 
A)  product is make-to-order. 
B)  product shelf life is short. 
C)  production process is continuous. 
D)  consumption rate is uniform.

Question 2

Manufacturing overhead includes which of the following types of costs?

Accepted Answer

A)  Interest expense 
B)  Supervision 
C)  Direct labor 
D)  Direct material 
A)  Interest expense 
B)  Supervision 
C)  Direct labor 
D)  Direct material

Question 3

A primary purpose of Quality Function Deployment is to:

Accepted Answer

A)  calculate performance limits. 
B)  determine marketing strategies. 
C)  direct product design. 
D)  set pass/fail criteria. 
A)  calculate performance limits. 
B)  determine marketing strategies. 
C)  direct product design. 
D)  set pass/fail criteria.

Question 4

Which of the following forecasting techniques reviews a company's sales history?

Accepted Answer

A)  Qualitative 
B)  Delphi 
C)  Extrinsic 
D)  Intrinsic 
A)  Qualitative 
B)  Delphi 
C)  Extrinsic 
D)  Intrinsic

Question 5

Which of the following types of inventory is characterized by item quantity gradually being depleted then replenished?

Accepted Answer

A)  Decoupling 
B)  Cycle 
C)  Pipeline 
D)  Anticipation 
A)  Decoupling 
B)  Cycle 
C)  Pipeline 
D)  Anticipation

Question 6

Reducing set up time will affect item lead time and throughput in which of the following ways?

Accepted Answer

A)  Lead time will increase, throughput will decrease 
B)  Lead time will increase, throughput will increase 
C)  Lead time will decrease, throughput will increase 
D)  Lead time will decrease, throughput will decrease 
A)  Lead time will increase, throughput will decrease 
B)  Lead time will increase, throughput will increase 
C)  Lead time will decrease, throughput will increase 
D)  Lead time will decrease, throughput will decrease

Question 7

Which of the following forecast inputs is considered to be intrinsic data?

Accepted Answer

A)  Demographic 
B)  Econometric 
C)  Historical sales 
D)  Market survey 
A)  Demographic 
B)  Econometric 
C)  Historical sales 
D)  Market survey

Question 8

Which of the following documents specifies how an item is to be manufactured?

Accepted Answer

A)  Routing 
B)  Bill of labor 
C)  Dispatch list 
D)  Item master 
A)  Routing 
B)  Bill of labor 
C)  Dispatch list 
D)  Item master

Question 9

Effective inventory management should lead to which of the following?

Accepted Answer

A)  Higher inventory turns 
B)  Higher product quality 
C)  Lower cost of capital 
D)  Elimination of inventory cycle counting 
A)  Higher inventory turns 
B)  Higher product quality 
C)  Lower cost of capital 
D)  Elimination of inventory cycle counting

Question 10

A product has a forecast of 200 units a month. The actual demand for the past 6 months has been 195, 210, 205, 190, 220, and 225. Calculate the tracking signal for this product's forecast.

Accepted Answer

A)  6 
B)  7.5 
C)  45 
D)  75 
A)  6 
B)  7.5 
C)  45 
D)  75

Question 11

A work center has 2 machines that are operated 16 hours a day for 5 days a week. Historically, the utilization has been 85% and the efficiency 105%. What is the rated capacity for this work center? (Rounded)

Accepted Answer

A)  71 
B)  99 
C)  130 
D)  143 
A)  71 
B)  99 
C)  130 
D)  143

Question 12

Which of the following statements about a distribution requirements planning system is true?

Accepted Answer

A)  It is used only for service parts. 
B)  Priority is given to open orders. 
C)  Material requirements planning logic is used. 
D)  Gross requirements come from exploding the bill of material. 
A)  It is used only for service parts. 
B)  Priority is given to open orders. 
C)  Material requirements planning logic is used. 
D)  Gross requirements come from exploding the bill of material.

Question 13

Which of the following processes is concerned with the change of ownership of goods and services?

Accepted Answer

A)  Distribution channel 
B)  Supply chain 
C)  Transaction channel 
D)  Value chain 
A)  Distribution channel 
B)  Supply chain 
C)  Transaction channel 
D)  Value chain

Question 14

Consignment stock is typically owned by:

Accepted Answer

A)  a supplier until consumed. 
B)  the company who will consume the stock. 
C)  a joint trust set up for this purpose. 
D)  the carrier who transports the stock. 
A)  a supplier until consumed. 
B)  the company who will consume the stock. 
C)  a joint trust set up for this purpose. 
D)  the carrier who transports the stock.

Question 15

Which of the following techniques deals with analysis and planning of logistics and manufacturing during various time periods?

Accepted Answer

A)  Advanced planning and scheduling 
B)  Aggregate planning 
C)  Aggregate forecast 
D)  Distribution Requirements Planning 
A)  Advanced planning and scheduling 
B)  Aggregate planning 
C)  Aggregate forecast 
D)  Distribution Requirements Planning

Question 16

Consolidating shipments and reducing the frequency of pickups help to reduce which of the following types of costs?

Accepted Answer

A)  Warehousing and inspection 
B)  Import duties and processing 
C)  Total transportation 
D)  Capital 
A)  Warehousing and inspection 
B)  Import duties and processing 
C)  Total transportation 
D)  Capital

Question 17

The complete supply chain dedicated to the flow of products for returns, repair and remanufacturing is:

Accepted Answer

A)  reverse auction. 
B)  reverse engineering. 
C)  reverse flow scheduling. 
D)  reverse logistics. 
A)  reverse auction. 
B)  reverse engineering. 
C)  reverse flow scheduling. 
D)  reverse logistics.

Question 18

Gemba is a Japanese word meaning:

Accepted Answer

A)  shop floor. 
B)  shop order. 
C)  shop packet. 
D)  shop traveler. 
A)  shop floor. 
B)  shop order. 
C)  shop packet. 
D)  shop traveler.

Question 19

In an assemble-to-order production environment, the master production schedule contains:

Accepted Answer

A)  standard items. 
B)  finished items. 
C)  raw materials. 
D)  subassemblies. 
A)  standard items. 
B)  finished items. 
C)  raw materials. 
D)  subassemblies.

Question 20

Which of the following information is the key output of rough-cut capacity planning?

Accepted Answer

A)  Line balancing 
B)  Critical resource availability 
C)  Inventory objectives by product line 
D)  Capacity requirements plan 
A)  Line balancing 
B)  Critical resource availability 
C)  Inventory objectives by product line 
D)  Capacity requirements plan

Economic order quantity (EOQ) is best applied when the:

Manufacturing overhead includes which of the following types of costs?

A primary purpose of Quality Function Deployment is to:

Which of the following forecasting techniques reviews a company's sales history?

Which of the following types of inventory is characterized by item quantity gradually being depleted then replenished?

Reducing set up time will affect item lead time and throughput in which of the following ways?

Which of the following forecast inputs is considered to be intrinsic data?

Which of the following documents specifies how an item is to be manufactured?

Effective inventory management should lead to which of the following?

A product has a forecast of 200 units a month. The actual demand for the past 6 months has been 195, 210, 205, 190, 220, and 225. Calculate the tracking signal for this product's forecast.

A work center has 2 machines that are operated 16 hours a day for 5 days a week. Historically, the utilization has been 85% and the efficiency 105%. What is the rated capacity for this work center? (Rounded)

Which of the following statements about a distribution requirements planning system is true?

Which of the following processes is concerned with the change of ownership of goods and services?

Consignment stock is typically owned by:

Which of the following techniques deals with analysis and planning of logistics and manufacturing during various time periods?

Consolidating shipments and reducing the frequency of pickups help to reduce which of the following types of costs?

The complete supply chain dedicated to the flow of products for returns, repair and remanufacturing is:

Gemba is a Japanese word meaning:

In an assemble-to-order production environment, the master production schedule contains:

Which of the following information is the key output of rough-cut capacity planning?

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Exam 2: CPIM - Basics of Supply Chain Management

Economic order quantity (EOQ) is best applied when the:

Manufacturing overhead includes which of the following types of costs?

A primary purpose of Quality Function Deployment is to:

Which of the following forecasting techniques reviews a company's sales history?

Which of the following types of inventory is characterized by item quantity gradually being depleted then replenished?

Reducing set up time will affect item lead time and throughput in which of the following ways?

Which of the following forecast inputs is considered to be intrinsic data?

Which of the following documents specifies how an item is to be manufactured?

Effective inventory management should lead to which of the following?

A product has a forecast of 200 units a month. The actual demand for the past 6 months has been 195, 210, 205, 190, 220, and 225. Calculate the tracking signal for this product's forecast.

A work center has 2 machines that are operated 16 hours a day for 5 days a week. Historically, the utilization has been 85% and the efficiency 105%. What is the rated capacity for this work center? (Rounded)

Which of the following statements about a distribution requirements planning system is true?

Which of the following processes is concerned with the change of ownership of goods and services?

Consignment stock is typically owned by:

Which of the following techniques deals with analysis and planning of logistics and manufacturing during various time periods?

Consolidating shipments and reducing the frequency of pickups help to reduce which of the following types of costs?

The complete supply chain dedicated to the flow of products for returns, repair and remanufacturing is:

Gemba is a Japanese word meaning:

In an assemble-to-order production environment, the master production schedule contains:

Which of the following information is the key output of rough-cut capacity planning?

Certification in Logistics, Transportation and Distribution

APICS Certified Supply Chain Professional

Filters