CPIM APICS Certified in Production and Inventory Management 2

Question 1

Which inventory cost category includes the expense of physically counting stock on hand?

Accepted Answer

Ordering cost

Answer

Physical counting labor is part of ordering (acquisition) costs because it supports replenishment decisions.

Question 2

In a pull production system, what triggers the release of a work order to a upstream workstation?

Accepted Answer

A downstream signal indicating consumption

Answer

Pull systems use downstream consumption signals (e.g., kanban cards) to authorize upstream production.

Question 3

What does the term 'throughput' measure in the Theory of Constraints (TOC)?

Accepted Answer

Rate at which the system generates money through sales

Answer

In TOC, throughput is the rate at which the system generates revenue minus totally variable costs.

Question 4

Which document authorizes a supplier to deliver materials within a specified time window under a long-term agreement?

Accepted Answer

Release order

Answer

A release order (or delivery schedule) calls off specific quantities against an existing blanket purchase order.

Question 5

Safety stock is primarily calculated to protect against which two sources of variability?

Accepted Answer

Demand variability and lead time variability

Answer

Safety stock buffers against uncertainty in both customer demand and supplier/production lead times.

CPIM - Certified in Production and Inventory Management Practice Test