CPIM Sample 5

Question 1

Which of the following is an example of a 'level production strategy' in aggregate planning?

Accepted Answer

Maintaining a constant workforce and production rate while using inventory to absorb demand variation

Answer

A level strategy maintains a stable workforce and production rate, using inventory buildup during slow periods and depletion during peak periods to absorb demand variability.

Question 2

In distribution requirements planning (DRP), what triggers a replenishment order from the central warehouse to a field distribution center?

Accepted Answer

When projected on-hand inventory falls below the reorder point or safety stock

Answer

DRP generates planned replenishment orders at each level of the distribution network when projected on-hand inventory is expected to fall below the safety stock or order point.

Question 3

Which quality management tool is MOST appropriate for identifying and prioritizing the root causes of a production defect?

Accepted Answer

Pareto chart

Answer

A Pareto chart ranks defect causes by frequency or impact, illustrating that roughly 80% of problems stem from 20% of causes, helping teams prioritize corrective action.

Question 4

A company wants to reduce its order-to-delivery lead time without changing its production process. Which strategy would MOST effectively achieve this?

Accepted Answer

Switching from MTO to assemble-to-order (ATO)

Answer

ATO moves the customer order decoupling point later by pre-building sub-assemblies, allowing final assembly to begin immediately upon order receipt, dramatically reducing customer-facing lead time.

Question 5

In supplier management, a 'vendor-managed inventory' (VMI) arrangement means:

Accepted Answer

The vendor monitors the customer's inventory and independently triggers replenishments

Answer

In VMI, the supplier takes responsibility for monitoring the customer's inventory levels and initiating replenishment orders, reducing the customer's ordering burden and improving supply responsiveness.

CPIM - Certified in Production and Inventory Management Practice Test

CPIM - Certified in Production and Inventory Management Practice Test

CPIM Sample 5