CPIM Cheat Sheet 2026

The 30 highest-yield CPIM facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. In the SCOR model, the 'Source' process category primarily refers to: → Procuring goods and services to meet planned demand
2. A factory implements a pull system where downstream stations signal replenishment only when inventory falls to a set trigger level. This is best described as a: → Two-bin kanban system
3. A firm sources a critical component from a single supplier in a region prone to natural disasters. Which strategy would best mitigate this supply risk? → Dual sourcing from geographically dispersed suppliers
4. A product has a demand of 500 units/week with a lead time of 3 weeks and a safety stock of 200 units. What is the reorder point? → 1,700 units
5. A team performing a kaizen event on a packaging line identifies motion waste. Which of the following BEST describes this type of waste? → Unnecessary physical movement by operators that does not add value
6. Which planning approach supports the S&OP process by aggregating product families rather than individual SKUs? → Production Planning (aggregate planning)
7. Which of the following is a key output of a supplier scorecard review? → Objective performance data used to guide supplier development or sourcing decisions
8. What does 'days of supply' measure in inventory management? → How many days the current inventory will last at current demand rates
9. A company notices its S&OP plan consistently shows a 15% positive bias (forecast always higher than actuals). The BEST first corrective action is to: → Identify and remove the root cause of the bias in the forecasting process
10. In lean thinking, a 'value-added' activity is defined as one that: → Transforms the product in a way the customer is willing to pay for
11. Which planning approach rebuilds the entire MRP plan from scratch each time it is run? → Regenerative MRP
12. Mean Absolute Deviation (MAD) is used in forecasting primarily to: → Measure forecast accuracy
13. Which of the following best describes a 'supplier development' initiative? → Collaborating with an existing supplier to improve their capabilities and performance
14. The forecast horizon should generally align with which planning parameter? → Cumulative lead time
15. What is a key component of an effective procurement process? → Structured supplier evaluation and contract negotiation
16. Which metric is commonly used to measure operations execution performance? → Overall Equipment Effectiveness (OEE)
17. Which planning horizon concept defines the time boundary within which the master production schedule is frozen and changes require management approval? → Demand time fence
18. What is the primary purpose of a distribution resource plan (DRP) bill of distribution? → Mapping the supply chain network structure showing how inventory flows between locations
19. How does increasing the service level target affect safety stock? → Safety stock increases, but at a diminishing marginal rate at high service levels
20. The Distribution Requirements Planning (DRP) system extends MRP logic to distribution by: → Planning time-phased replenishment orders across the distribution network
21. What does 'cash-to-cash cycle time' measure in supply chain performance? → Time from paying for materials to receiving payment from customers
22. Which lean concept involves leveling production volume and mix over a planning period to reduce variability? → Heijunka
23. Which of the following is a key input used in Quality Function Deployment (QFD) to translate customer needs into technical requirements? → Voice of the Customer (VOC)
24. Why is supplier relationship management important? → It helps improve collaboration and performance
25. What is 'total cost of ownership' (TCO) in CPIM supplier evaluation? → All costs associated with acquiring, using, and disposing of a product over its lifetime
26. Which of the following is considered a 'demand shaping' activity? → Offering a pre-season discount on a new line of winter coats.
27. Which technique aggregates individual SKU forecasts into a product family or group forecast to improve overall planning accuracy? → Hierarchical forecasting
28. What is a 'quality cost' category that includes scrap, rework, and warranty claims? → Internal failure costs and external failure costs
29. What is Rough-Cut Capacity Planning (RCCP) used for? → Validating that the MPS is feasible before detailed scheduling
30. What does 'OEE' (Overall Equipment Effectiveness) measure in a lean environment? → The combined effect of availability, performance, and quality on equipment productivity