Practice Test GeeksCPIM - Certified in Production and Inventory Management Practice Test
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Sample Flashcards

7 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which of the following is a characteristic of a make-to-order (MTO) production environment?

    Answer: Production begins only after a customer order is received

    In MTO, production is initiated only upon receipt of a customer order, meaning no finished goods inventory is maintained and each product is made to customer specification.

  2. In supply chain management, the 'bullwhip effect' refers to:

    Answer: Increasing variability in demand signals as you move upstream in the supply chain

    The bullwhip effect describes how small fluctuations in retail demand can amplify into large swings in orders upstream, caused by factors like demand forecast updates and order batching.

  3. Which lean tool is used to visually represent the flow of materials and information in a production process to identify waste?

    Answer: Value stream mapping

    Value stream mapping (VSM) is a lean tool that diagrams the current and future state of material and information flows, highlighting non-value-added activities and waste.

  4. A company applies ABC analysis to its inventory. Class A items typically represent:

    Answer: A small percentage of items accounting for the majority of annual dollar usage

    ABC analysis classifies inventory by annual dollar usage; Class A items are roughly 10-20% of SKUs but represent approximately 70-80% of total annual dollar usage.

  5. The term 'takt time' in lean manufacturing is calculated as:

    Answer: Available production time divided by customer demand rate

    Takt time = Available production time / Customer demand rate; it sets the pace of production to match customer demand and avoid overproduction.

  6. Which forecasting method assigns greater weight to more recent data points?

    Answer: Exponential smoothing

    Exponential smoothing assigns exponentially decreasing weights to older observations, with the smoothing constant (alpha) controlling the emphasis on recent data.

  7. In a just-in-time (JIT) environment, supplier relationships are best characterized as:

    Answer: Long-term partnerships with a reduced number of certified suppliers

    JIT requires highly reliable, frequent deliveries of exact quantities, which is best achieved through long-term partnerships with a small number of certified, trusted suppliers.