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  5. CPIM - Basics of Supply Chain Management Questions and Answers
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CPIM-BSP CPIM - Basics of Supply Chain Management Questions and Answers

Questions 4

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

Options:

A.

Rework

B.

Work in process

C.

Anticipation

D.

Maintenance, repair, and operations supplies (MRO)

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Questions 5

The ABC approach to inventory management is used primarily to:

Options:

A.

minimize transportation and material handling costs.

B.

classify inventory according to the total amounts of inventory required.

C.

optimize the amount of inventory for all classifications of inventory.

D.

establish the degree of inventory control required.

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Questions 6

Which of the following considerations is an advantage of sourcing from multiple suppliers?

Options:

A.

Competition

B.

Opportunity for partnering

C.

Better quality

D.

Shorter lead times

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Questions 7

A distributor provides customer service by improving which of the following market driven factors?

Options:

A.

Availability

B.

Design

C.

Shelf life

D.

Quality

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Questions 8

A 5-year decline in demand for diapers most closely represents which of the following types of forecast patterns?

Options:

A.

Irregular

B.

Cyclic

C.

Trend

D.

Seasonal

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Questions 9

Which of the following factors most likely will impact the demand for a firm's products or services?

Options:

A.

Forecast accuracy

B.

Order processing system

C.

Competition

D.

Planning horizon

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Questions 10

An extreme change in demand in the supply position upstream generated by a small change in demand downstream in the supply chain is called the:

Options:

A.

efficiency variance.

B.

bullwhip effect.

C.

estimate of error.

D.

stockout probability.

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Questions 11

Service parts needs are most often determined by:

Options:

A.

bills of material explosion.

B.

forecasts based on prior demand.

C.

material requirements planning (MRP) logic calculations.

D.

analysis of lead-time requirements.

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Questions 12

Which of the following statements is true regarding the concept of independent demand?

Options:

A.

These items are usually raw materials.

B.

The requirements for these items are usually forecasted.

C.

The demand for these items must be calculated.

D.

The demand for these items is related to demand for other items.

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Questions 13

The question below is based on the following cost information:

CPIM-BSP Question 13

What is the carrying cost?

Options:

A.

14%

B.

16%

C.

20%

D.

25%

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Questions 14

The lean production concept works best in which of the following manufacturing environments?

Options:

A.

Make-to-order

B.

Intermittent

C.

Project

D.

Flow

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Questions 15

Inventory turns is an appropriate performance measure for which of the following functions?

Options:

A.

Material control

B.

Activity-based costing control

C.

Total quality management

D.

Flexible manufacturing

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Questions 16

Which of the following concepts could a firm implement to reduce defects?

Options:

A.

Hansei

B.

Jidoka

C.

Muri

D.

Heijunka

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Questions 17

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

Options:

A.

Long production changeover time

B.

Customer service expectations

C.

Product quality requirements

D.

Product shelf life constraints

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Questions 18

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

Options:

A.

Gantt chart

B.

Input/output chart

C.

Control chart

D.

Capacity chart

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Questions 19

The primary advantage of process flexibility is the:

Options:

A.

ease of implementing engineering changes.

B.

responsiveness to volume or mix changes.

C.

decrease in labor costs.

D.

reduced need for skills.

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Questions 20

Which of the following processes commits orders against available capacity as well as inventory?

Options:

A.

Available-to-promise

B.

Capable-to-promise

C.

Engineered-to-order

D.

Make-to-order

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Questions 21

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

Options:

A.

Make-to-stock

B.

Design-to-order

C.

Assemble-to-order

D.

Make-to-order

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Questions 22

At which of the following levels does sales and operations planning take place?

Options:

A.

Component

B.

Finished goods

C.

Product family

D.

Market

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Questions 23

Which of the following statements about strategic planning is true?

Options:

A.

It is focused on the master production schedule (MPS) and the material requirements plan.

B.

It helps integrate the plans of marketing and production.

C.

It involves primarily personnel development and acquisition of long-lead-time materials.

D.

It is top-level planning that is not tied to other planning activities.

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Exam Code: CPIM-BSP
Exam Name: CPIM - Basics of Supply Chain Management
Last Update: Mar 21, 2024
Questions: 155
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