CPIM APICS Certified in Production and Inventory Management 3

Question 1

What is the primary output of the Material Requirements Planning (MRP) process?

Accepted Answer

Planned order releases and action messages

Answer

MRP produces planned order releases and exception action messages to direct purchasing and production.

Question 2

A company experiences high variability in customer demand. Which inventory replenishment policy best adapts to this variability?

Accepted Answer

Min-max system

Answer

A min-max (reorder point) system triggers replenishment when stock drops below a minimum level, adapting to demand variability.

Question 3

Which master scheduling input directly converts customer orders and forecasts into specific end-item production quantities?

Accepted Answer

Demand management process

Answer

Demand management consolidates forecasts and customer orders into the demand signal used to build the MPS.

Question 4

Under the Economic Order Quantity (EOQ) model, what happens to the optimal order quantity if annual demand doubles?

Accepted Answer

It increases by approximately 41%

Answer

EOQ is proportional to the square root of demand, so doubling demand increases EOQ by √2 ≈ 1.41.

Question 5

Which scheduling rule gives priority to the job with the least amount of time remaining until its due date?

Accepted Answer

Earliest due date (EDD)

Answer

Earliest due date prioritizes jobs by their due date, minimizing the number of late jobs.

CPIM - Certified in Production and Inventory Management Practice Test