GICS CPIM Pretest 150 v3 PDF

CPIM test set(150) The CPIM test set which consists of 150 questions reflects the latest trends. We hope it will be a valuable opportunity to further increase the chances of applicants passing the test. Test configu...

CPIM test set(150) The CPIM test set which consists of 150 questions reflects the latest trends. We hope it will be a valuable opportunity to further increase the chances of applicants passing the test. Test configuration Number of questions: 150 Duration: with in 3hours Domain % of exam Questions Align the Supply chain to support the biz strategy 15% 23 Conduct Sales & Operations planning(S&OP) 9% 13 Plan and Manage Demand 9% 13 Plan and Manage Supply 16% 24 Plan and Manage Inventory 19% 28 Plan, Manage, and Execute Detailed Schedule 16% 24 Pland and Manage Distribution 5% 8 Manage Quality, Continuous Improvement, and Technology 11% 17 Toal 100% 150 Precautions It's a good process to check your actual skills, so if you're preparing, we ask you to do it in a concentrated environment when you take the pre-test. (It's not an open book test) If the correct answer rate is more than 110 in this pre-test, it is judged that it can be passed sufficiently.  Global Institute for Creative Studies(GICS) 1. If a control chart shows 7 consecutive points trending upward, even though all points are within control limits, this situation most likely indicates: A. A stable process with natural variation B. A process with a systematic change, potentially going out of control. C. Random fluctuations that do not need any attention. D. A process that meets quality standards 2. Failure mode effects analysis (FMEA) rates failures based on the probability of their occurrence and there: A. Likelihood of causing other failures. m B. Degree of severity. o C. Ease of mitigation. D. Chance of occurring more than once. t i.c 3. The primary reason for tracing a component with scheduling problems to its master production schedule (MPS) item is to: r A. Revise the rough-cut capacity plan. n c e B. Reschedule a related component on the shop floor..o C. Check the accuracy of the bills for the MPS items. D. Determine if a customer order will be impacted. w w 4. A piece of equipment is incapable of maintaining process control for longer than 4 hours, and has become a bottleneck, due to unforeseen tooling wear. Tool sharpening requires two hours to sharpen and move back into production. Which of the following corrective actions w should be done first? A. Loosen the product standards or tolerances. B. Obtain a second set of tooling. C. Replace the old equipment with new. D. Change the material specification and supplier. 5. Which of the following statements is true about the meantime between failures (MTBF) measure? A. It is used for non-repairable products. B. An increase in MTBF is proportional to an increase in quality. C. It is a useful measure of reliability. D. It is the same as operating life or service life. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 6. One reason for evaluating multiple sales and operations plans during the Pre-S&OP meeting is A. It is a theoretical plan only, so can be changed at any time. B. It cannot be finalized until delivered to top management. C. To assess their financial implications. D. The forecast provided may not be accurate. 7. A manufacturer has a primary assembly line supported by output from several subassembly lines. Which of the following scenarios would be the best argument for a multilevel master scheduling process? m A. Low variation in aggregate subassembly demand o B. High variation in aggregate subassembly demand C. Low variation in subassembly demand mix.c D. High variation in subassembly demand mix rt i 8. A company can easily change its workforce, but inventory carrying costs are high. Which of e the following strategies would be most appropriate during times of highly fluctuating demand? A. Produce to backorders n c.o B. Produce at a constant level C. Produce to the sales forecast D. Produce to demand w w 9. A company that uses concurrent engineering is likely to experience which of the following outcomes in the first period of a product's life cycle? w A. Fewer product design changes B. An increase in obsolete inventory C. More accurate forecasting D. Conflicts between purchasing and engineering 10. Price negotiation is most appropriate when purchasing which of the following product categories? A. Commodities B. Standard products C. Items of small value D. Made-to-order (MTO) items CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 11. Which of the following is most correct regarding the production plan in a make-to-stock environment? A. A production plan cannot be used for one-of-a-kind products that have not been assigned to a product family. B. Past-due load in the production plan receives increased priority by the planner’s use of the critical ratio technique. C. An overloaded production plan alerts the master scheduler to correct the condition in the master production schedule. D. The production plan is the time-phased plan of overall output, and it may be stated in terms of units, tons, or linear feet. m 12. The horizon for forecasts that are input to the sales and operations planning (S&OP) process o should be long enough that:.c A. Cumulative forecast deviation approaches zero. i B. Planned product launches can be incorporated. t C. Required resources can be carefully planned. r D. Supply constraints can be resolved. n c e 13. In choosing suppliers, a company wishes to maintain maximum leverage to reduce costs..o Which of the following supply chain strategies would provide this opportunity? A. Single sourcing w B. Multi-sourcing C. Long-term agreement w D. Service-level agreement (SLA) w 14. A company selling seasonal products is preparing their sales and operations plan for the coming year. Their current labor staffing is at the maximum for their production facility and cannot meet the forecasted demand. The business plan shows they do not have the financial capability to add to the production facility. Which of the following actions would be most appropriate? A. Use level production planning and investigate subcontracting to meet the extra demand. B. Use chase production planning and only take the orders that can be produced in the high demand season. C. Use hybrid production planning to save labor costs and inventory costs in the low demand season. D. Use hybrid production planning and reduce the size of the customer base during the high demand season. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 15. Which of the following activities is an example of collaboration between suppliers and operations which would give more lead time visibility? A. Conducting a facility tour for a supplier. B. Sharing of demand data with a supplier C. Sending the supplier an annual forecast for materials. D. Conducting a qualification meeting with the supplier of a new material. 16. Which of the following criteria is used to determine safety stock in a distribution center (DC)? A. Economic order quantity(EOQ) m B. Seasonal index value o C. Alpha factor level D. Probability of stocking out t i.c 17. Which of the following best describes the relationship between failure costs and control costs? r c e A. Increasing control costs can reduce failure costs. n B. Control costs and failure costs are unrelated..o C. Failure costs decrease as quality standards are ignored. D. Failure costs increase when control costs decrease. w w 18. How would a master production schedule (MPS) be used in an assemble-to-order (ATO) manufacturing environment? w A. The MPS is used to plan subassemblies and components; end items are only scheduled when a customer order is received. B. Subassemblies are scheduled in the MPS when the customer order is received, and production can start. C. Typically, the MPS is not used in companies using an ATO manufacturing strategy. D. Often in an ATO environment, the MPS is created once a year and only revised if a product is discontinued. 19. Which of the following situations is most likely to occur when using a push system? A. Work centers receive work even if capacity is not available. B. Work centers are scheduled using finite capacity planning. C. Work centers operate using decentralized control. D. Work centers signal previous work centers when they are ready for more work. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 20. In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is: A. Reduced forecast variability. B. Fewer customer order changes. C. Fewer customer defections. D. Earlier Identification of shifts in customer preferences. 21. In which of the following situations would you use an X-bar chart? A. Track the number of defects that are found in each unit. B. Measure the difference between the largest and the smallest in a sample. m C. Determine the average value of a group of units. o D. Estimate a subgroup variation. t i environment where multiple options are available for product lines? r.c 22. Which of the following planning techniques is likely to be most useful in a manufacturing e A. Program evaluation review technique (PERT) c B. Distribution requirements planning n C. Capacity requirements planning.o D. Rough-cut capacity planning w 23. Check sheets can be used to: w A. Determine the frequency of a defect and the time period between occurrences. B. Provide a quick method to identify, if possible, defects exist. w C. Allow improvement teams to see if action items are being completed on time. D. Provide an indication of correlation between defects. 24. The demand for an item has increased forecast error, whereas all other factors remain constant. Which of the following remains constant while maintaining the same customer service level? A. Reorder point(ROP) B. Safety stock C. Inventory investment. D. Safety factors CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 25. A house of quality (HOQ) chart aligns which pair of functions? A. Customer requirements with costing B. Engineering with operations C. Customer purchasing with supplier shipping. D. Competitive analysis with product design 26. Which of the following is the fundamental difference between finite loading and other capacity planning approaches? A. It is highly dependent on advanced computer software to function effectively. B. It is only managed by shop floor supervisors. m C. It can use historical information to drive decision-making processes. o D. It considers adjustments to plans based on planned capacity utilization. following tasks? rt i.c 27. Up-to-date Information about production order status is required to do which of the e A. Calculate current takt time. c B. Determine planned orders. n C. Replenish kanban quantities..o D. Calculate the cost of work in process (WIP). w 28. A company manufactures a product with the following costs per month: - Fixed manufacturing overhead: $30,000 w - Variable manufacturing cost per unit: $10 - Units produced: 5,000 w Using Full Costing (Absorption Costing), what is the cost per unit, including both variable and fixed manufacturing costs? A. $6 per unit C. $16 per unit B. $10 per unit D. $20 per unit 29. A low-cost provider strategy works best when which of the following conditions are met? A. Price competition among rivals is similar. B. Buyers are more price sensitive. C. There are many ways to achieve product differentiation. D. There are few industry newcomers. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 30. Moving average forecasting methods are best when demand shows: A. A clear trend. B. High random variation. C. Consistent seasonality. D. A cyclical pattern. 31. Which of the following environments is most suitable for the use of kanban systems? A. Short product life cycles B. High levels of customization C. Intermittent production m D. Stable and predictable demand.c o 32. Which of the following complications exist for the movement of materials from the point- i of-use to the point-of-fit in a pull system that supports a mixed-model schedule? rt A. Timing of the authorization to move the material may be off. e B. Replenishment may not be the same item as was just consumed. c C. Material handling moves may not be synchronized with the schedule. n D. Movement may require an individual other than the operator. w planning(DRP) system is that:.o 33. The primary outcome of frequent replenishments in a distribution requirement w A. Lead times to customers decrease. B. Transportation costs decrease. w C. The level of required safety stock is reduced. D. More efficient load consolidation occurs. 34. The production plan relates to a firm's financial planning because it is used to: A. Calculate standard product costs. B. Determine variable costs. C. Project payroll costs. D. Identify future cash needs. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 35. Given the information below, reducing which measure by 10% would contribute most to shortening the cash-to-cash cycle time? - Monthly sales: $4,200,000 - Accounts receivable at month end: $3,520,000 - Inventory value at the month end: $3,000,000 - Accounts payable at the month end: $3,450,000 - Cost of capital: 13.5% A. Accounts receivable B. Inventory value C. Accounts payable D. Cost of capital om 36. A Transportation Management System (TMS) can help businesses reduce transportation.c costs by: t i A. Allowing for better carrier selection and route optimization. r B. Decreasing inventory levels at distribution centers e C. Adding more vehicles to the fleet. c D. Reducing warehouse space requirements..o n 37. Which of the following statements is true about total productive maintenance (TPM)? w A. It uses statistical tools. B. It is part of the business strategy. w C. It influences the product design process. D. It minimizes unscheduled breakdowns. w 38. An example of a cradle-to-cradle sustainability model would be: A. Laundry service collects dirty baby clothes from families; cleans the clothes in large, efficient batches; and then sorts and delivers the clothes back to each family. B. Coffee shop collects paper waste in its restaurants, has a selected supplier collect the paper waste to be recycled, and then purchases paper products from that supplier. C. Company uses wood that has been gathered from multiple sources to construct items, such as beds and toys for babies and young children. D. Bank offers the lowest interest rates on loans to firms that are committed to using recycled materials and implementing zero-waste initiatives in their processes. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 39. An information system implementation project is six months behind schedule because many people involved with the project are working on a serious problem with product quality. Which of the following actions should the executive steering committee take in this situation? A. Cancel the system implementation because it is adversely affecting product quality. B. Contract with an outside systems and consulting group to implement the system. C. Let the project manager handle the problem and get the project back on schedule. D. Reschedule implementation efforts based on the resources currently available. 40. A reduction in purchased lot sizes will reduce which of the following items? A. Inventory levels m B. Frequency of orders o C. Reorder points (ROPs) D. Set up times. t i.c 41. Which of the following benefits typically will be realized when switching from a functional to a cellular layout? r A. Equipment utilization will be higher. n B. Quality inspections will be reduced. c e.o C. Capital expenditure will be reduced. D. Products will have faster throughput. w w 42. The most relevant measure of customer service performance is: A. Service perceived by the customer against service expected by the customer. w B. Service promised to the customer against service measured by the supplier. C. Customer complaints received as a percentage of orders shipped. D. Positive customer feedback as a percentage of customer feedback. 43. Stockouts have occurred due to failures by suppliers to ship on schedule, causing extensive backorders. The past due orders were successfully reduced due to overtime once the parts arrived. The best approach for incorporating this information into the sales and operations planning process for the upcoming month is to A. Reduce the production plan in the first period to free up capacity for the past due orders. B. Maintain the existing approach for developing the production and operational plans. C. Reduce the forecast demand in the first period and replace it with the remaining past due orders. D. Increase the demonstrated capacity in the first period to reflect the use of overtime. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 44. The trade-off of increasing safety stock to improve customer fill rate would be a decrease in: A. Pipeline inventory. B. Transportation costs. C. Inventory turns. D. Sales revenue. 45. A company implementing a localized multi-country strategy to increase market share should engage in which of the following actions? A. Sell different product versions in different countries under different brand names. m B. Sell the same products under the same brand name worldwide. o C. Locate plants on the basis of maximum location advantage. D. Use the best suppliers regardless of geographic location. t i.c 46. Which of the following methods would be appropriate for forecasting the demand for a r product family when there is a significant trend and seasonality in the demand history. A. Econometric models B. Computer simulation n c e.o C. Time series decomposition D. Weighted moving average. sampling? w w 47. Which of the following reasons can be used for basing incoming inspection on acceptance w A. Develop a quality history for each supplier part that can be used to evaluate performance. B. Determine whether 100% inspection is required to separate defects from good parts. C. Reduce part unit cost by eliminating the need for a supplier to inspect the part. D. Infer lot acceptability from the sample and take defined actions per the quality plan. 48. Management should support investments in new process technologies that: A. Require minimal changes in existing systems, procedures, and skills. B. Have been recommended by technical experts and equipment suppliers. C. Provide significant cost-reduction opportunities for the company's current products. D. Provide long-term competitive advantage with acceptable financial risk. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 49. Forecast error typically triggers forecast revision when it is: A. Used in computing the tracking signal. B. Associated with the Introduction stage of the product life cycle. C. Continually increasing. D. Caused by random variation. 50. A planner has chosen to increase the order point for a raw material. Which of the following costs is most likely to increase? A. Carrying B. Ordering C. Landed D. Product om 51. In the process of participating in the United Nations Global Compact (UNGC), companies are expected to take specific actions to demonstrate commitment. Which of the following is.c part of this process? t i A. Conducting annual charity events for local communities. r B. Submitting a Communication on Progress (COP) report annually to detail efforts in e implementing the Ten Principles c C. Developing competitive strategies that prioritize profit over social responsibility. n D. Registering once without the need for further engagement or updates. w.o 52. Which of the following conditions is most likely to result in planned production that is greater than the total demand over the sales and operations planning (S&OP) horizon for a product family that is made to stock? w A. An increase in the customer service level is planned for the product family. w B. New models are being added to the product family. C. Planned ending inventory for the product family is less than the beginning inventory. D. There is a long-term upward trend in demand for the product family. 53. The primary consideration in maintenance, repair, and operating (MRO) supply systems typically is: A. Order quantity. B. Stockout costs. C. Carrying costs. D. Shelf life. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 54. An example of a flexibility metric for an organization is: A. Average batch size. B. Scrap rate. C. Percentage of orders delivered late. D. Cycle time. 55. A newer automotive supplier has not fully developed its information technology (IT) systems. The supplier has Just received a contract from a large automotive manufacturer which requires the supplier to use electronic data interchange (EDI) transactions for receiving orders, sending advance ship notices (ASNs), and receiving invoice payments. What strategy can the supplier adopt to immediately meet the EDI requirements? A. Select, install, and implement EDI software. om B. Use current third-party logistics provider (3PL) to handle the EDI transactions..c C. Claim hardship and ask the automotive manufacturer for a waiver. i D. Negotiate using email as an alternative with the customer. e rt 56. A company decided not to pursue a business opportunity in a foreign market due to political c Instability and currency fluctuations. Which risk control strategy did this business utilize? A. Mitigation C. Recovery.o n B. Prevention D. Wait and see. w w 57. After moving a low-margin product line to an outside supplier, the manufacturing group wants to add production hours to the facility. They could possibly work with marketing to find new products to fill the production-hour gaps, but a more short-term solution would be to: w A. Purchase a competitor and manufacture its items. B. Find currently outsourced high-margin items and insource them. C. integrate backward. D. Lay off workers by attrition. 58. A company assembles kits of hand tools after receipt of the order from distributors and uses two-level master scheduling. The appropriate levels of detail for the forecasts that are input to master scheduling would be total number of kits and: A. Each unique tool. B. Percentage of total for each tool. C. Raw material requirements. D. Specific kit configurations. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 59. If the total part failure rate of a machine is 0.00055 failures per hour, what would be the mean time between failures (MTBF) in hours? A. 1,818.2 B. 59.99945 C. 1.98 D. 0.99945 60. Which of the following results is indicated as the standard deviation becomes smaller through continuous improvement efforts? A. The range related to deviation is being systematically reduced. m B. The sample mean is moving closer to the standard deviation. o C. The entire process is moving from non-capable to capable. D. Chance causes of variation are being systematically reduced. 61. Risk pooling would work best for items with: rt i.c e A. Low demand uncertainty and short lead times. c B. Low demand uncertainty and long lead times. n C. High demand uncertainty and short lead times..o D. High demand uncertainty and long lead times. w 62. Which of the following circumstances would cause a move from acceptance sampling to 100% inspection? w A. History shows that the quality level has been stable from lot to lot. w B. The company uses one of its qualified suppliers. C. Downstream operators encounter recurring defects. D. The percentage of defects is expected to be greater than 5%. 63. If you want to understand a company’s financial stability by examining its debt-to-equity ratio, which financial statement and ratio should you use? A. Balance Sheet / Debt-to-Equity Ratio B. Cash Flow Statement / Cash Ratio C. Income Statement / Gross Profit Margin D. Balance Sheet / Asset Turnover Ratio CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 64. Which of the following statements about demonstrated capacity is true? A. It reflects the future load. B. It should be higher than rated capacity. C. It considers utilization and efficiency factors. D. It is determined from actual results. 65. A logistics manager is faced with delivering an order via rail or truck. Shipping via rail costs S300 and takes 14 days. Shipping via truck costs $600 and takes 3 days. If the holding cost is $40 per day, what is the cost to deliver the order? A. $340for rail,$600 for truck m B. $340for rail.$720 for truck o C. $860for rail,$720 for truck D. $860for rail.$600 for truck t i 66. Given the following data, calculate the appropriate takt time: r.c e - Production weeks per year: 48weeks c - Available production time per day: 10 hours n - Average daily demand: 2,400 units.o - Average crew size: 2 employees A. 0.25 minutes B. 1 minute C. 2 minutes D. 4 minutes w w 67. Information outside of the closed-loop process between production planning and capacity w planning for determining work center loading is A. Planned order required dates. B. Available work center capacity C. Released order quantities. D. Available and allocated inventory 68. An example of an assignable cause of variation in process performance is: A. Power fluctuation during machine operation. B. Machine vibration during operation. C. Incorrect setup of a machine by the operator. D. Changes in temperature in the machine shop. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 69. The time spent in queue by a specific manufacturing job is determined by which of the following factors related to the order? A. Lot size B. Priority C. Setup time D. Run time 70. A term used to mean the actual output of production compared to the actual input of resources is A. Efficiency. B. Productivity m C. Utilization D. Input/output control.c o 71. A company confirms a customer order based on available capacity and inventory, even i though the current production plan does not cover the entire order quantity. This situation is t an example of what type of order fulfillment policy? A. Assemble-to-order (ATO) C. Available-to-promise (ATP). e r B. Capable-to-promise (CTP) c D. Configure-to-order (CTO).o n 72. Marketing has requested a significant change in the mix for a product family. The requested change falls between the demand and the planning time fences. The most appropriate action by w the master scheduler is to: w A. Reject the request. B. Accept the request. w C. Forward to the request to senior management. D. Check the availability of the required material. 73. One of the key objectives of Total Productive Maintenance (TPM) is to maximize equipment performance and improve operational efficiency. To achieve this, TPM programs encourage employees to take a more active role in equipment maintenance. This approach promotes a high level of responsibility among employees regarding equipment care and operation, which positively impacts overall productivity. Which of the following is a common method TPM uses to achieve these goals? A. Outsource all maintenance tasks to specialized external contractors. B. Minimize preventive maintenance to increase productivity. C. Involve equipment operators directly in routine maintenance tasks. D. Extend equipment operating hours to increase production capacity. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 74. Which of the following factors typically would distort a sales forecast that is based solely on shipment history? A. Material shortages B. Labor rate changes C. Currency exchange rates D. Customer demands 75. For a process that is outside its upper control limit (UCL), which of the following techniques would best be used to return the process under control? A. Conduct a Pareto analysis. m B. Plan-do-check-action (PDCA) o C. Plot histograms D. Monitor control charts t i.c 76. The following table shows various costs associated with purchasing a quantity larger than r immediately needed. Based on this information, which costs should be included to calculate e the total landed cost? c Cost Category Cost ($) n Custom fees 125.o Freight 700 Warehouse rent 200 Material cost 500 w Marketing expenses 75 w A. $825 B. $1,325 w C. $1,525 D. $1,600 77. A primary reason to use statistical process control on an operation that is in the state of statistical control is to: A. Reduce the operation cycle time. B. Track parts acceptance. C. Detect special cause variation. D. Define the specification limits for parts. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 78. Global outsourcing and shared suppliers serving an industry are drivers of which category of risk? A. Supply disruptions B. Forecast inaccuracy C. Procurement problems D. Loss of intellectual property 79. The primary purpose for engaging in cycle counting activities is to: A. Eliminate the need for a traditional physical inventory count. B. More frequently reconcile the actual on-hand and system on-hand for items. m C. Smooth out the tasks of counting inventory throughout the fiscal year. o D. Improve material handling processes and reduce or eliminate errors. receipt quantity is committed to: rt i.c 80. When the discrete available-to-promise (ATP) method is used, the master production e A. Any request for shipment prior to the planning time fence. c B. Any request for shipment prior to the demand time fence (DTF). n C. Requests only for shipment before the next master production schedule (MPS) receipt..o D. Requests only for shipment in the period of the receipt. w 81. Typically, rough-cut capacity planning (RCCP) in a job shop environment would review which of the following work centers to determine the ability to execute the plan? w A. Critical work centers only w B. Gateway work centers only C. Final assembly work centers only D. All work centers 82. A Sustainable Footprint primarily aims to measure: A. The economic impact of a company’s financial decisions B. The overall environmental and social impact of human activities on natural resources C. Personal carbon emissions based solely on transportation use. D. Short-term business profits in various industries CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 83. The master schedule is an Important tool in the sales and operations planning (S&OP) process because it: A. Represents the forecast before changes are made in S&OP. B. Represents the forecast with less detail. C. Balances supply and demand at the product mix level. D. Balances supply and demand at the sales volume level. 84. Which of the following methods most likely Introduces a temporary variance between the inventory balance and the inventory record? A. Inventory write-off m B. Backflushing o C. Cycle count D. Kanban t i.c 85. Improvements in an Input/output control (I/O control) system will most likely lead to: r e A. Flattened bills of material (BOMs). c B. A change in operation sequencing. n C. Reduction in queue size and queue time..o D. Fewer engineering change notifications. w 86. Information regarding a major new customer is received from sales. The company's most appropriate initial response would be to adjust the: w A. Production volume. w B. Master production schedule (MPS). C. Sales and operations plan. D. Forecast. 87. What term is used for the sales and operations planning process of dividing products or services into families, brands, and subfamilies for various planning levels? A. Product configuration B. Product load profile C. Product/service hierarchy D. Product positioning CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 88. Based on the values reported in the table below, what is the inventory turnover? - Current asset : $700,000 - Current liabilities: $300,000 - Inventory : $150,000 - Sales revenue: $390,000 - Cost of goods sold(COGS): $260,000 - General & Administrative expenses(G&A): $250,000 A. 0.50 B. 0.58 C. 1.73 D. 2.60 om 89. Long lead-time items with stable demand would best be supported by a supply chain: A. Using a pull system. C. Designed to be responsive. rt i B. Linked through an enterprise resources planning (ERP) system..c e D. Positioning inventory close to the consumer. n c.o 90. Which of the following outcomes is a benefit of mixed-model scheduling? A. Increased inventory B. Improved response demand w C. Fewer setups. D. Fewer material shortages w 91. Which of the following prioritization rules will have the greatest impact in reducing the w number of orders in queue? A. Critical ratio B. Shortest processing time C. Fewest operations remaining D. First come, first served. 92. Which of the following statements is an assumption on which the economic order quantity (EOQ) model is based? A. Customer demand is known but seasonal. B. Items are purchased and/or produced continuously and not in batches. C. Order preparation costs and inventory-carrying costs are constant and known. D. Holding costs, as a percentage of the unit cost, are variable. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 93. A company uses moving average to forecast on a monthly basis, and has many customers with varied demand. An outlier is most likely represented by. A. Actual demand for a period is three standard deviations greater than the forecast. B. A shutdown of the company for a month with no customer orders accepted. C. One customer order within a period is 10 times larger than any other order. D. Actual demand for a period causes the next period's forecast to exceed the median. 94. Which of the following inventory management techniques is most responsive to changes in demand levels? A. Two-bin system m B. Periodic review system o C. Cycle counting D. ABC classification t i.c 95. Which of the following changes would have an impact on the use of a production activity control system? r c e I. Changing from a batch to a line manufacturing environment. n II. Implementing modular bills of material for items with options..o III. Grouping production equipment into focused work cells A. I and II only. B. I and III only w C. II and III only D. I, II, and III capacity? w 96. Which of the following tools is used to evaluate the impact that a production plan has on w A. Demand time fence (DTF) B. Bill of resources C. Product routing D. Safety capacity 97. The planned channels of Inventory disbursement from one or more sources to field warehouses are known as: A. A supply chain community. B. Interplant demand. C. A bill of distribution. D. Logistics data interchange (LDI). CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 98. For a company that uses first in, first out (FIFO) inventory accounting, the actual use in production of a recently arrived shipment of more expensive components rather than lower cost components previously received will have which of the following results? A. Higher cost of goods sold (COGS) B. Lower COGS C. No change to COGS D. A violation of FIFO rules 99. A company produces make-to-stock products that are stocked and shipped from distribution centers, to which deliveries are made weekly. No safety stock is carried, and inventory shows available when it is placed into stock at the distribution center. Which of the following m statements is most true of a performance measure based on units completed within the master- o scheduled weekly period?.c A. Any order completed is considered on time any day of the week. i B. Master scheduling performance is secondary to distribution of customer service. t C. On-time completion is measured relative to the day of shipment to distribution. r D. Performance is more accurate if products are aggregated into families. n c e 100. Given the information below, what is the weekly theoretical capacity of this work area in.o hours? - Labor3 people w - Work hours10 hours per day - Days4 days per week w - Meetings with work area employees1/2 hour per day - Work area efficiency85% A. 97 w B. 102 C. 114 D. 120 101. Which of the following measurements indicates there may be bias in the forecast model? A. Mean absolute deviation (MAD) B. Standard deviation C. Tracking signal D. Variance CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 102. In Company GICS, transaction-costing capability has been Integrated into the shop floor reporting system. A batch of 20 units was started in production. At the fourth operation, 20 units are reported as complete. At the fifth operation, 25 units are reported as complete. When all operations are complete, 20 units are checked into the stockroom. If the error at the fifth operation is undetected, which of the following conditions will be true? A. Stockroom inventory balance will be incorrect. B. Operator efficiency for the fifth operation will be overstated. C. Units in process will be understated. D. Work-in-process (WIP) cost will be understated. m 103. Which of the following situations is most likely a reason for establishing order priorities o with a final assembly schedule based on internal measures, rather than on customer-oriented measures? A. Kanban quantity is larger than the lot size. B. Key work centers are level loaded. C. Customer has a short order due date. rt i.c e D. Damaged product needs to be replaced n c.o 104. A company has a demand for 30 units of A, 40 units of B, and 50 units of C. These products are scheduled to run daily in batches of 10 as follows: ABC, ABC, ABC, CBC. What is this scheduling technique called? A. Mixed model B. Matrix w C. Synchronized w w D. Line balancing 105. Based on the above table, calculate the mean absolute deviation (MAD). Period Actual Forecast Variation 1 80 50 30 2 50 40 10 3 50 75 -25 4 75 65 10 Total 255 230 25 A. -25 B. 6.25 C. 18.75 D. 20 CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 106. When starting an external benchmarking study, a firm must first: A. Determine the metrics which will be measured and compared. B. Identify the target firms with which to benchmark against. C. Understand its own processes and document performance. D. Determine its areas of weakness versus the competition's. 107. A part is sold as a service part, and it is also used as a component in another part. Which of the following statements about the planning for this part is true? A. Its low-level code is zero. B. The material requirements for the part will be understated. m C. The service part demand can be included in the gross requirements. o D. It should not have any safety stock. Item Stock Order A quantity r i Order B quantity.c 108. A company has prioritized customers A, B, and C, filling orders in that sequence. What t are the impacts to customer service levels for customers B and C? Order C quantity e 909 12 4 7 4 c 109 10 5 4 2 n 832 5 2 1 2.o A. 100% service levels for B and C B. Customer B has a higher service level. w C. Customer C has a higher service level. D. Customer B and C have the same service level. w w 109. A disadvantage of a capacity-lagging strategy may be: A. Lack of capacity to fully meet demand. B. Risk of excess capacity if demand does not reach the forecast. C. A high cost of inventories. D. Planned capital investments occur earlier than needed. 110. Which of the following is an example of a failure cost in quality management? A. Training employees in quality standards B. Inspecting products during the production process C. Reworking defective products D. Purchasing high-quality materials. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 111. If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will: A. Remain the same. B. Increase in direct (linear) proportion. C. Increase at a decreasing rate. D. Increase at an increasing rate. 112. In pyramid forecasting, the "roll up" process begins with: A. Combining individual product item forecasts into forecasts for product families. B. Combining forecasts for product families into a total business forecast. m C. Allocating total business forecast changes to product families. o D. Allocating product family forecast changes to individual products. rt i.c 113. A plant uses a level production strategy due to the high costs of hiring and letting go of skilled employees. The constrained resource is due to be upgraded in the fourth month of the planning horizon, and that will reduce capacity for that month by 17%. Which of the following e actions would be appropriate in this situation to maintain current levels of customer service c and gross margin?.o n A. Increase planned production for the next three periods. B. Defer the upgrade to a period beyond the planning time fence. C. Increase planned production from the fifth period on. w D. Defer the upgrade to the period in which the highest stock level is planned. w A. Drones w 114. Which of the following technologies would be the best fit for a pharmaceutical company that needs precise information related to temperature control throughout the supply chain? C. Wearable Technology. B. Blockchain D. Cloud computing 115. When using NPV (Net Present Value) to assess an investment, which of the following best describes its purpose? A. NPV calculates the rate at which an investment breaks even. B. NPV measures the projected profitability by discounting future cash flows to their present value. C. NPV only considers the initial investment cost and ignores future cash flows. D. NPV provides the exact time required to recoup the initial investment. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 116. Transitioning from barcodes to RFID technology in a business setting is an example of which stage? A. Development B. Extension C. Pioneer D. Modification 117. In preparing for a facility location decision, proximity to suppliers would be classified as which kind of criteria? A. Service level requirements m B. Future flexibility factors o C. Access to transportation. D. Cost factors t i 118. A statistical safety stock calculation would be appropriate for: r.c e A. Components used in multiple end items. c B. New products at the time of introduction. n C. End items with stable demand..o D. Supply-constrained raw materials. w 119. The main purpose of the A3 Problem-Solving technique is to: w A. Develop a deep and complex analysis of problems without requiring team involvement. B. Encourage collaborative problem-solving through a clear, visual communication tool that w emphasizes understanding and continuous improvement. C. Focus on short-term fixes rather than addressing root causes of issues. D. Track inventory and supply chain data for lean production management 120. Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet? A. Decreased fixed assets. B. Decreased retained earnings. C. Increased accounts receivable D. Increased intangible assets. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 121. A company's primary performance objective is flexibility. Which of the following measures is most important? A. Labor productivity B. Schedule adherence C. Machine changeover time. D. Cycle time 122. Which of the following trade-offs should be evaluated when determining where to place inventory in a multi-echelon supply chain network? A. Production cost and lot size quantity m B. Purchase cost and shrinkage rates o C. Transportation cost and delivery time. D. Customer price and order quantity t i.c 123. A company sells a product at a unit selling price of $50. The variable cost per unit is $30, r and total fixed costs are $40,000. The company wants to achieve a target profit of $20,000. e How many units must the company sell to achieve this target profit? A. 2,000 units n c.o B. 3,000 units C. 4,000 units D. 5,000 units w w 124. When designing a production cell, which of the following items would be the most important consideration? w A. The unit per hour requirement for the production cell to meet the sales forecast. B. The flow of materials into the cell and sequencing of operations to minimize total cycle time. C. The output rate for the first operation and move time after the last workstation. D. The takt time requirement for each operator to meet the monthly production goals of the plant. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 125. The question below is based on the following standard and actual data of a production order. Which of the following statements about variances is true? Standard Actual Order quantity : 100 pieces. Quantity Completed: 100 pieces. Standard Requirements Usage Labor: 0.5 hours per unit Labor: 48 hours Component A: 1.5 yards/unit Component A: 130 yards Component B: 2 pieces per unit Component B: 210 pieces Standard costs Actual costs Labor: $10 per hour Labor: $480 Component A: $0.5 per yard Component A: $65 Component B: $1.5 per piece Component B: $336 A. The material price variance for Component A is favorable at $10. om.c B. The labor price variance is unfavorable at $20. C. The material usage variance for Component B is favorable by $36. t i D. The labor efficiency variance is favorable by $20. e r 126. Long-term agreements with suppliers may include which of the following types of special arrangements? c I. Simplified paperwork systems II. Returnable containers.o III. Specially designed containers n w IV. Effective personal contacts at each site w A. IV only w B. II and III only C. I, II, and III only D. I, II, III, and IV 127. A firm that currently produces all items to stock is implementing the concept of postponement in all new product designs. Which of the following outcomes is most likely to result? A. Product variety will decrease. B. Sales volume per product family will increase. C. Number of finished items stocked will decrease. D. Number of component items stocked will increase. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 128. Which of the following systems would be the most cost-efficient for inventory management of a low value item? A. Order point B. Material requirements planning (MRP) C. Periodic review D. Economic order quantity(EOQ) 129. Which of the following methods places a replenishment order when the quantity on hand falls below a predetermined level? A. Min-max system B. Fixed order quantity m C. Periodic review D. Available-to-promise (ATP).c o 130. Bargaining power of suppliers can significantly impact a company’s competitiveness. i Which of the following actions can a company take to reduce supplier power? rt A. Relying on a single supplier to maintain consistent quality. e B. Building strong relationships with multiple suppliers or vertically integrating. c C. Increasing order quantities with a single supplier to reduce costs. n D. Focusing solely on domestic suppliers to reduce complexity. w.o 131. Capacity requirements planning has been used to check the validity of the material plan, and no constraining work centers were identified. Which of the following scenarios is most likely the reason? w A. The production operations are balanced and have no individual bottlenecks. w B. Capacity requirements planning used infinite capacity rather than finite loading. C. The available capacity was greater than that required by the volume and mix. D. The capacity check did not include the various constraining work centers. 132. Which two of the following conditions describe an environment that most likely will support change successfully? I. The chief executive officer spearheads the change process. II. The organization is under considerable internal or external pressure to improve. III. Major projects are tackled first to achieve maximum benefit. IV. Experimentation is accepted as a part of the change process. A. I and III B. I and IV C. II and III D. II and IV CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 133. One of the benefits of Integrating a poka-yoke into the production process is that it can be used to: A. Facilitate mixed-model scheduling. B. Prevent defects. C. Improve machine utilization. D. Enable one-piece flow. 134. The primary benefit that results from the cross-training of employees is: A. Improved flexibility. B. Improved capacity. m C. Shortened lead time. o D. Effective problem-solving. steps: rt i.c 135. A company's process design and manufacturing departments are developing a team to run a kaizen event to improve production methods and standards. The team must take the following I. Identify the problem areas. n II. Review the current work procedures. c e.o III. Solve problems and develop new methods. IV. Implement new methods. w In which order should these steps be performed? w A. I, II, III, IV B. I, III, II, IV w C. II, I, III, IV D. II, III, I, IV 136. Which of the following inventory accounting methods would indicate the lowest inventory value on the balance sheet in times of steadily rising prices? A. First in, first out B. Last in, first out C. Standard cost D. Average cost CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 137. A major difference between an advanced planning and scheduling (APS) system and a traditional planning system is that an APS system includes the use of: A. Input/output analysis. B. Horizontal loading. C. Infinite loading. D. Forward scheduling. 138. The primary purpose of the United Nations Global Compact (UNGC) is to: A. Set mandatory international laws for corporate environmental policies. B. Encourage businesses worldwide to align strategies and operations with universal principles m in human rights, labor, environment, and anti-corruption. o C. Generate financial reports for United Nations projects. D. Focus exclusively on environmental sustainability t i.c 139. The primary difference between enterprise resources planning (ERP) and manufacturing resource planning (MRP II) is that ERP: r A. Is computer based, but MRP II is not. n c e B. Includes supplier and distribution/delivery information..o C. Includes manufacturing information only. D. Provides balance between production, marketing, and information technology. w w 140. An advantage of applying ABC classification to a firm's replenishment items is that: A. It distinguishes independent demand from dependent demand. w B. It allows planners to focus on critical products. C. It provides better order quantities than the economic order quantity (EOQ). D. It allows the firm to utilize time-phased order point (TPOP). 141. Which of the following attributes describes a company with a global strategy? A. It uses the same basic competitive style worldwide and focuses efforts on building global brands. B. It customizes the basic competitive style to fit markets but focuses efforts on building global brands. C. It coordinates major strategic decisions worldwide but gives country managers wide strategy-making latitude. D. It operates plants in many host countries and uses decentralized distribution. CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 142. Which of the following stock location systems would you use in a repetitive manufacturing, lean environment? A. Fixed location B. Floating location C. Point-of-use storage. D. Central storage 143. Which of the following statements correctly describes the relationship between the strategic plan and the business plan? A. These are two names for the same plan. B. The strategic plan constrains the business plan. C. The two plans are developed independently. m D. The two plans are the output of a single process..c 144. Which of the following actions will result in lower inventory levels? o A. Level load the master production schedule (MPS). B. Reduce replenishment lead times. rt i e C. Increase customer service level. c D. Decentralize inventory locations..o n 145. When inventory levels increase during a period, which of the following statements best describes the effect on reported profit under Full Costing and Variable Costing? w w A. Reported profit is higher under Variable Costing than Full Costing B. Reported profit is higher under Full Costing than Variable Costing C. Reported profit remains the same under both methods. w D. Reported profit is unaffected by changes in inventory under Full Costing 146. Which of the following guidelines should be used when selecting activities for performance measurement? I. The activity has significant effect on the performance of the overall system. II. The activity has a high potential for improvement. III. The activity falls within the responsibility of the organization. IV. The activity is measurable (objective and quantifiable). A. I and IV only B. I, II, and IV only C. II, III, and IV only D. I, II, III, and IV CPIM 150 Questions (www.oncerti.com)  Global Institute for Creative Studies(GICS) 147. Substituting capital equipment in place of direct labor can be economically Justified for which of the following scenarios? A. Volumes are forecasted to increase. B. Material prices are forecasted to increase. C. Implementing a pull system in production. D. Functional layouts are being utilized. 148. Reducing distribution network inventory days of supply will have which of the following Impacts? A. Increase turnovers and increase cash-to-cash cycle time. m B. Increase turnovers and reduce cash-to-cash cycle time. o C. Decrease turnovers and reduce cash-to-cash cycle time. D. Decrease turnovers and increase cash-to-cash cycle time. t i.c 149. During the sales and operations planning (S&OP) process, which of the following tasks r is the primary responsibility of the functional representatives on the supply planning team? c e A. Identifying reasons why the demand plan is not realistic. n B. Communicating when an event prevents meeting the supply plan..o C. Ensuring that the functional objectives are considered when developing the plans. D. Understanding how to use the plan to improve functional performance. w w 150. Which of the following statements characterizes a pull system in distribution management? A. Each warehouse makes its own replenishment decisions. w B. It uses distribution requirements planning(DRP). C. It uses uniform performance measures. D. It uses fair-share allocation. End of Questions CPIM 150 Questions (www.oncerti.com)