APIC's CPIM Part 1 Practice Exams Questions
With 100% Correct Answers.
The ability of a company to address the needs of and inquiries and requests from customers refers to:
on-time delivery.
customer service.
order fill rates.
customer relationship management.
customer service.: Customer service is the ability of a company to address the needs of and inquiries
and requests from customers.
Which of the following is included in the cost of goods sold?
Standard cost
General and administrative expenses
Revenue
Overhead
Overhead: The cost of goods is classically defined as consisting of direct labor, direct material, and
overhead.
Which of the following warehouse activities involves bringing goods together and checking for
omissions or errors in the order?
Dispatching the shipment
Picking goods
Dispatching goods to storage
Marshalling the shipment
Marshalling the shipment: When marshalling a shipment, goods making up a single order are brought
together and checked for omissions or errors, and order records are updated accordingly. Picking is
the process of selecting items from storage and bringing them to a marshalling area. Dispatching
goods to storage is the process of sorting goods upon receipt and placing them in a storage area.
Dispatching the shipment is the process of order packing, preparing shipping documents, and loading
items on the correct transport vehicles.
When purchasing natural products like fruit, what should the supplier agreement specify?
Allowable variation in quantity.
Exact delivery dates.
Discounts if paying late.
Exact quantity per order.
Allowable variation in quantity.: Specifying allowable variation in quantity for natural products is an
example of the specificity needed in supplier agreements so as to avoid later confusion or
disagreement. However, specifying exact delivery dates on products that depend on the weather may
also not be possible.
A company is experiencing a change in demand from steady to sporadic. It currently uses economic
order quantity (EOQ) to determine purchase quantities for a key component. Which of the following
models should it use in the future?
Lean one-piece flow
Period order quantity
Fixed order quantity
EOQ
Period order quantity: As a product moves from continuous to intermittent demand, a better
inventory replenishment tool is a period order quantity, where inventory balances are reviewed
periodically and quantity purchased up to a specific maximum quantity. In contrast, EOQ, lean one-
piece flow, and fixed order quantity are all based on continuous demand characteristics.
,Based on the information below, in what week would a planned order release be generated to satisfy
the net requirement?
Lead time: 3 weeks
Order quantity: 100
Net requirement exists in: week 6
Net requirement quantity: 150
Week 1
Week 2
Week 3
Week 6
Week 3: Because the net requirement exists in week 6, the planned order release is offset by the lead
time of three weeks. Thus, the planned order release will be generated in week 6 - 3 weeks = week 3.
In a planning bill for an updated configuration of a cellphone, the total percentages for the amounts
required for the three possible memory chips used equal 115. What does this indicate?
The manufacturer has received more orders for blue than other colors.
The manufacturer is making a hedge against higher demand.
There has been an error in the calculations.
The manufacturer is making up for missed orders.
The manufacturer is making a hedge against higher demand.: When a planning bill's percentage is
higher than 100, it is a form of hedge against volatility in demand. It serves roughly the same purpose
as safety stock. Because this is a planning bill, no orders have yet been received, and therefore it does
not refer to received orders.
Which of the following primarily focuses on ensuring that inventory records accurately represent the
value of inventory?
Audit
Periodic inventory
Cycle counting
Perpetual inventory
Periodic inventory: The main purpose of periodic inventory is to satisfy financial auditors that the
inventory records represent the value of the inventory.
A company adheres to a policy of level production for its product. What production rate will result in
zero ending inventory after four periods? beginning inventory = 0
Period 1 Demand 60
Period 2 Demand 80
Period 3 Demand 40
Period 4 Demand 100
60
70
90
100
70: Total Demand for Four Periods = 60 + 80 + 40 + 100 = 280/4 Periods = 70 Units
During which step of the purchasing cycle does an organization authorize the purchasing department
to purchase specified materials in specified quantities within a specified time?
Issue purchase order.
Generate requisition.
, Follow up.
Approve payment.
Generate requisition.: The first step of the purchasing cycle, generate requisition, is when an
organization authorizes the purchasing department to purchase a set amount of material during a set
amount of time.
The function of priority planning in a manufacturing company is to determine what material is needed
and:
the capacity required.
when it is needed.
where it is needed.
potential sources for it.
when it is needed.: Priority planning is, by definition, the function of determining what material is
needed and when. The other options deal with either producing the product based on the priority
plan or getting and delivering the material identified by priority planning.
Which of the following programs asks businesses to embrace, support, and enact, within their sphere
of influence, a set of core values in the areas of human rights, labor standards, the environment, and
anti-corruption?
United Nations Children's Fund
United Nations Global Compact
ADB/OECD Anti-Corruption Initiative
Universal Declaration of Human Rights
United Nations Global Compact: The incorrect answers all represent global initiatives to increase
human rights and well-being, but they do not have the focus of the United Nations Global Compact on
supply chain management.
Drum-buffer-rope (DBR) is the term for:
scheduling and managing operations that have an internal constraint or a capacity-constrained
resource.
balancing the assignment of tasks to workstations to minimize the number of workstations and the
amount of idle time at all stations for a given output.
spreading orders out in time or rescheduling operations so that the amount of work to be done in
sequential time periods tends to be distributed evenly and is achievable.
periodically changing employee job responsibilities to provide a broader perspective and view of the
organization.
scheduling and managing operations that have an internal constraint or a capacity-constrained
resource.: DBR is the theory of constraints method for scheduling and managing operations that have
an internal constraint or a capacity-constrained resource.
What is the term for an array of inventory broken out into different categories based on Pareto's law?
Group technology
ABC classification
Days of supply
Value analysis
ABC classification: An ABC classification of inventory represents a group of items in decreasing order
of annual monetary volume (price multiplied by projected volume) or other criteria. This array is then
split into three classes: A, B, and C.
Which of the following is a means of replenishing inventory through a supplier's review and
responsibility to maintain targeted inventory levels?
Collaborative planning, forecasting, and replenishment
With 100% Correct Answers.
The ability of a company to address the needs of and inquiries and requests from customers refers to:
on-time delivery.
customer service.
order fill rates.
customer relationship management.
customer service.: Customer service is the ability of a company to address the needs of and inquiries
and requests from customers.
Which of the following is included in the cost of goods sold?
Standard cost
General and administrative expenses
Revenue
Overhead
Overhead: The cost of goods is classically defined as consisting of direct labor, direct material, and
overhead.
Which of the following warehouse activities involves bringing goods together and checking for
omissions or errors in the order?
Dispatching the shipment
Picking goods
Dispatching goods to storage
Marshalling the shipment
Marshalling the shipment: When marshalling a shipment, goods making up a single order are brought
together and checked for omissions or errors, and order records are updated accordingly. Picking is
the process of selecting items from storage and bringing them to a marshalling area. Dispatching
goods to storage is the process of sorting goods upon receipt and placing them in a storage area.
Dispatching the shipment is the process of order packing, preparing shipping documents, and loading
items on the correct transport vehicles.
When purchasing natural products like fruit, what should the supplier agreement specify?
Allowable variation in quantity.
Exact delivery dates.
Discounts if paying late.
Exact quantity per order.
Allowable variation in quantity.: Specifying allowable variation in quantity for natural products is an
example of the specificity needed in supplier agreements so as to avoid later confusion or
disagreement. However, specifying exact delivery dates on products that depend on the weather may
also not be possible.
A company is experiencing a change in demand from steady to sporadic. It currently uses economic
order quantity (EOQ) to determine purchase quantities for a key component. Which of the following
models should it use in the future?
Lean one-piece flow
Period order quantity
Fixed order quantity
EOQ
Period order quantity: As a product moves from continuous to intermittent demand, a better
inventory replenishment tool is a period order quantity, where inventory balances are reviewed
periodically and quantity purchased up to a specific maximum quantity. In contrast, EOQ, lean one-
piece flow, and fixed order quantity are all based on continuous demand characteristics.
,Based on the information below, in what week would a planned order release be generated to satisfy
the net requirement?
Lead time: 3 weeks
Order quantity: 100
Net requirement exists in: week 6
Net requirement quantity: 150
Week 1
Week 2
Week 3
Week 6
Week 3: Because the net requirement exists in week 6, the planned order release is offset by the lead
time of three weeks. Thus, the planned order release will be generated in week 6 - 3 weeks = week 3.
In a planning bill for an updated configuration of a cellphone, the total percentages for the amounts
required for the three possible memory chips used equal 115. What does this indicate?
The manufacturer has received more orders for blue than other colors.
The manufacturer is making a hedge against higher demand.
There has been an error in the calculations.
The manufacturer is making up for missed orders.
The manufacturer is making a hedge against higher demand.: When a planning bill's percentage is
higher than 100, it is a form of hedge against volatility in demand. It serves roughly the same purpose
as safety stock. Because this is a planning bill, no orders have yet been received, and therefore it does
not refer to received orders.
Which of the following primarily focuses on ensuring that inventory records accurately represent the
value of inventory?
Audit
Periodic inventory
Cycle counting
Perpetual inventory
Periodic inventory: The main purpose of periodic inventory is to satisfy financial auditors that the
inventory records represent the value of the inventory.
A company adheres to a policy of level production for its product. What production rate will result in
zero ending inventory after four periods? beginning inventory = 0
Period 1 Demand 60
Period 2 Demand 80
Period 3 Demand 40
Period 4 Demand 100
60
70
90
100
70: Total Demand for Four Periods = 60 + 80 + 40 + 100 = 280/4 Periods = 70 Units
During which step of the purchasing cycle does an organization authorize the purchasing department
to purchase specified materials in specified quantities within a specified time?
Issue purchase order.
Generate requisition.
, Follow up.
Approve payment.
Generate requisition.: The first step of the purchasing cycle, generate requisition, is when an
organization authorizes the purchasing department to purchase a set amount of material during a set
amount of time.
The function of priority planning in a manufacturing company is to determine what material is needed
and:
the capacity required.
when it is needed.
where it is needed.
potential sources for it.
when it is needed.: Priority planning is, by definition, the function of determining what material is
needed and when. The other options deal with either producing the product based on the priority
plan or getting and delivering the material identified by priority planning.
Which of the following programs asks businesses to embrace, support, and enact, within their sphere
of influence, a set of core values in the areas of human rights, labor standards, the environment, and
anti-corruption?
United Nations Children's Fund
United Nations Global Compact
ADB/OECD Anti-Corruption Initiative
Universal Declaration of Human Rights
United Nations Global Compact: The incorrect answers all represent global initiatives to increase
human rights and well-being, but they do not have the focus of the United Nations Global Compact on
supply chain management.
Drum-buffer-rope (DBR) is the term for:
scheduling and managing operations that have an internal constraint or a capacity-constrained
resource.
balancing the assignment of tasks to workstations to minimize the number of workstations and the
amount of idle time at all stations for a given output.
spreading orders out in time or rescheduling operations so that the amount of work to be done in
sequential time periods tends to be distributed evenly and is achievable.
periodically changing employee job responsibilities to provide a broader perspective and view of the
organization.
scheduling and managing operations that have an internal constraint or a capacity-constrained
resource.: DBR is the theory of constraints method for scheduling and managing operations that have
an internal constraint or a capacity-constrained resource.
What is the term for an array of inventory broken out into different categories based on Pareto's law?
Group technology
ABC classification
Days of supply
Value analysis
ABC classification: An ABC classification of inventory represents a group of items in decreasing order
of annual monetary volume (price multiplied by projected volume) or other criteria. This array is then
split into three classes: A, B, and C.
Which of the following is a means of replenishing inventory through a supplier's review and
responsibility to maintain targeted inventory levels?
Collaborative planning, forecasting, and replenishment
