CPIM

CPIM practice questions, page 8 of 11, with answer review and explanations.

Question 36

Which of the following statements characterizes a pull system in distribution management?

  1. Each warehouse makes its own replenishment decisions.
  2. It uses distribution requirements planning (DRP).
  3. It uses uniform performance measures.
  4. It uses fair-share allocation.

Question 37

When starting an external benchmarking study, a firm must first:

  1. determine the metrics which will be measured and compared.
  2. identify the target firms with which to benchmark against.
  3. understand its own processes and document performance.
  4. determine its areas of weakness versus the competition’s.

Question 38

Risk pooling would work best for items with:

  1. low demand uncertainty and short lead times.
  2. low demand uncertainty and long lead times.
  3. high demand uncertainty and short lead times.
  4. high demand uncertainty and long lead times.

Question 39

A company confirms a customer order based on available capacity and inventory, even though the current production plan does not cover the entire order quantity. This situation is an example of what type of order fulfillment policy?

  1. Assemble-to-order (ATO)
  2. Capable-to-promise (CTP)
  3. Available-to-promise (ATP)
  4. Configure-to-order (CTO)

Question 40

An effective approach to projecting requirements for materials with long lead times includes which of the following options?

  1. Initiate a multilevel master schedule.
  2. Use phantom bills of materials (BOMs).
  3. Increase the level of safety stock.
  4. Decrease the planning horizon.