CPIM Sample 3

Question 1

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

Accepted Answer

Production begins only after a customer order is received

Answer

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.

Question 2

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

Accepted Answer

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

Answer

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.

Question 3

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

Accepted Answer

Value stream mapping

Answer

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.

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

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

Accepted Answer

Available production time divided by customer demand rate

Answer

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

CPIM - Certified in Production and Inventory Management Practice Test

CPIM - Certified in Production and Inventory Management Practice Test

CPIM Sample 3