Question 1

Which of the following is a graphical representation of a frequency distribution?

Accepted Answer

A)  Cause-and-effect diagram 
B)  Pareto analysis 
C)  Scatter diagram 
D)  Histogram

Question 2

Which of the following differences must be taken into consideration when dealing with a global distribution system?

Accepted Answer

A)  Culture 
B)  Cost 
C)  Carriers 
D)  Computer systems

Question 3

Which of the following characteristics is most distinctive of lean manufacturing?

Accepted Answer

A)  Teamwork 
B)  Continuous improvement 
C)  Qualitative measurements 
D)  Bottom-line results

Question 4

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

Accepted Answer

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

Question 5

Which of the following measures should a company focus on to reduce variation in the product?

Accepted Answer

A)  Mode 
B)  Mean 
C)  Median 
D)  Standard deviation

Question 6

Which method of record audit is concerned with the total value of inventory?

Accepted Answer

A)  Weight counts 
B)  Cycle counts 
C)  Physical inventory 
D)  Sampling records

Question 7

Which of the following four plant types for the theory of constraints processes one raw material into one final product?

Accepted Answer

A)  V-plant 
B)  A-plant 
C)  T-plant 
D)  I-plant

Question 8

Which of the following issues would be of greatest concern for a company choosing to reduce its finished goods inventory?

Accepted Answer

A)  Long production changeover time 
B)  Customer service expectations 
C)  Product quality requirements 
D)  Product shelf life constraints

Question 9

Which of the following systems typically involves design while manufacturing is occurring?

Accepted Answer

A)  Flow 
B)  Intermittent 
C)  Project 
D)  Engineer

Question 10

The final purchasing steps in order completion are:

Accepted Answer

A)  receipt of goods and approval of invoice. 
B)  selecting suppliers and receipt of goods. 
C)  requesting quotations and approval of invoice. 
D)  selecting suppliers, follow-up, and delivery.

Question 11

Which of the following documents is generated to show required components for a shop order?

Accepted Answer

A)  Master production schedule 
B)  Bill of materials 
C)  Picking list 
D)  Advance shipping notice

Question 12

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. Which of the following values reflects the mean absolute deviation for this data?

Accepted Answer

A)  7.5 
B)  12.5 
C)  45 
D)  75

Question 13

Companies typically make final purchasing decisions based on which of the following supplier characteristics?

Accepted Answer

A)  Reverse logistics 
B)  Personal relationships 
C)  Delivery reliability 
D)  Market share

Question 14

If the quantity ordered equals the quantity required in a time bucket, which of the following lot-sizing rules has been used?

Accepted Answer

A)  Lot-for-lot 
B)  Fixed order quantity 
C)  Order "N" periods supply 
D)  Economic order quantity (EOQ)

Question 15

Which of the following situations is characteristic of a make-to-stock environment?

Accepted Answer

A)  Work in process (WIP) represents the largest cost of inventory. 
B)  The impact of technology on the production process will be large. 
C)  The master schedule is stated at the finished product level. 
D)  Customer involvement is typically very high.

Exam 2: CPIM - Basics of Supply Chain Management