FREE Certified in Production and Inventory Management (Basics of Supply Chain Management) Questions and Answers

Question 1

Which of the following functional domains makes decisions regarding the supply of products and the treatment of customers?

Accepted Answer

Marketing

Answer

Marketing is the functional area that decides the product to be supplied and the customers to be served.

Question 2

Which of the following claims about the idea of independent demand is accurate?

Accepted Answer

The requirements for these items are usually forecasted

Answer

Independent demand refers to the demand for finished products or end items that are directly demanded by customers. These demands are not influenced by the demand for other items, and thus, they need to be forecasted.

Question 3

An advantageous competitive trait is one that:

Accepted Answer

A company must exhibit to gain new sales

Answer

An order winner is a competitive characteristic that a company must exhibit to win sales and gain a competitive advantage in the market. It could be a feature or attribute of a product or service that makes it more desirable to customers than the offerings of competitors.

Question 4

A product is expected to sell 200 units per month. During the previous six months, the actual demand was 195, 210, 205, 190, 220, and 225. Which of the following values best represents the data's mean absolute deviation?

Accepted Answer

12.5

Answer

To calculate the mean absolute deviation, we need to first find the absolute deviation of each demand value from the forecast, then find the average of those deviations.

The absolute deviations from the forecast are:

|195-200| = 5
|210-200| = 10
|205-200| = 5
|190-200| = 10
|220-200| = 20
|225-200| = 25

The sum of these absolute deviations is 5 + 10 + 5 + 10 + 20 + 25 = 75.

The mean absolute deviation is calculated by dividing this sum by the number of data points, which is 6.

Mean absolute deviation = 75/6 = 12.5.

Therefore, the answer is 12.5.

Question 5

What demand management activity involves handling a client request and preparing materials for manufacturing or shipping?

Accepted Answer

Order processing

Answer

Order processing includes processing a customer request and making material available for production or shipping.

CPIM - Certified in Production and Inventory Management Practice Test

CPIM - Certified in Production and Inventory Management Practice Test

FREE Certified in Production and Inventory Management (Basics of Supply Chain Management) Questions and Answers