APICS CPIM Exam 1 (2025) Actual
Exam Questions and Answers A+
Graded
ABC .classification .- .CORRECT .ANSWER-Process .of .classifying .items .in
.descending .order .based .on .annual .dollar .volume .or .some .other .criteria. .The
.list .is .then .split .into .3 .classes .- .A, .B, .and .C. .A .represents .10-20% .of .items .but
.50-70% .of .dollar .volume; .B .represents .20% .of .items .and .20% .of .dollar .volume;
.C .represents .60-70% .of .items .but .10-30% .of .dollar .volume. .This .principle
.states .that .effort .and .money .can .be .saved .by .applying .looser .controls .to .the
.low .dollar .volume .items .(C .class) .than .the .higher .dollar .volume .items .(A .& .B
.classes) .and .applies .to .inventory, .purchasing, .sales, .etc.
Advance .ship .notice .(ASN) .- .CORRECT .ANSWER-Electronic .data .interchange
.(EDI) .notification .of .shipment .of .goods
Andon .- .CORRECT .ANSWER-Electronic .board .that .provides .visibility .of .floor
.status .and .gives .info .to .help .coordinate .efforts .linked .to .work .centers; .green
.light .= .running, .red .light .= .stop, .yellow .light .= .needs .attention
Anticipation .inventories .- .CORRECT .ANSWER-Any .additional .inventory .above
.basic .pipeline .stock .to .cover .projected .trends .of .increased .sales, .planned
.promo .programs, .seasonal .fluctuation, .plant .shutdowns, .and .vacations
Assemble-2-order .- .CORRECT .ANSWER-Production .environment .where .a .good
.or .service .can .be .assembled .after .receipt .of .a .customer's .order. .The .key
.components .(or .ingredients) .used .in .assembly .or .finishing .process .are
.planned .and .stocked .in .anticipation .of .a .customer .order. .Receipt .of .order
.initiates .assembly .of .the .customized .product. .Useful .strategy .when .a .large
.number .of .end .products .can .be .assembled .from .common .components
Available .inventory .- .CORRECT .ANSWER-On-hand .inventory .balance .minus
.allocations, .reservations, .backorders, .and .quantities .held .for .quality .problems
Backflush .- .CORRECT .ANSWER-Method .of .inventory .bookkeeping .where .the
.book .inventory .is .automatically .reduced .after .completion .of .activity .on
.component's .upper-level .parent .item .based .on .what .should .have .been .used .as
,.specified .on .the .BOM .and .allocation .records; .disadvantage .is .difference
.between .book .inventory .and .physical .OH .inventory
Backhauling .- .CORRECT .ANSWER-Process .of .transportation .returning .from
.original .destination .point .to .point .of .origin; .can .be .full, .partial, .or .empty .load
Backlog .- .CORRECT .ANSWER-All .customer .orders .received .but .not .yet .shipped
.(open .orders .or .order .board)
Backorder .- .CORRECT .ANSWER-Unfulfilled .customer .order .or .commitment. .An
.immediate .(or .past .due) .demand .against .an .item .whose .inventory .is
.insufficient .to .satisfy .the .demand
Back .scheduling .- .CORRECT .ANSWER-Technique .for .calculating .operation .start
.dates .and .due .dates; .start .with .order .due .date .and .work .backwards .to
.calculate .required .start .date .and/or .due .dates .for .each .operation
Batch .- .CORRECT .ANSWER-Qty .scheduled .to .be .produced .or .in .production;
.type .of .mfg .process .used .to .produce .items .with .similar .designs .& .cover .wide
.range .of .order .volumes; .items .ordered .are .of .a .repeat .nature
Bill .of .lading .- .CORRECT .ANSWER-Document .issued .by .a .carrier .which .details
.a .shipment .of .merchandise .and .gives .title .of .that .shipment .to .a .specified
.party.
Bill .of .material .(BOM) .- .CORRECT .ANSWER-Listing .of .all .the .subassemblies,
.intermediates, .parts, .and .raw .materials .that .go .into .a .parent .assembly .showing
.the .quantity .of .each .required .to .make .an .assembly; .used .in .conjunction .with
.the .master .production .schedule .to .determine .the .items .for .which .purchase
.requisitions .and .production .orders .must .be .released; .list .of .all .the .materials
.needed .to .make .one .production .run .of .a .product, .by .a .contract .manufacturer,
.of .piece .parts/components .for .its .customers
Bonded .warehouse .- .CORRECT .ANSWER-Buildings .or .parts .of .a .building
.designated .by .Sec .of .Treasury .for .storing .imported .goods, .operated .under
.supervision .of .US .Customs
Bottleneck .- .CORRECT .ANSWER-Facility, .function, .department, .or .resource
.whose .capacity .is .less .than .the .demand .placed .upon .it; .machine .or .work
.center
Break-bulk .- .CORRECT .ANSWER-Dividing .truckloads .of .similar .items .into
.smaller, .more .appropriate .qty's .for .use
Buffer .- .CORRECT .ANSWER-Qty .of .materials .awaiting .further .processing; .can
.refer .to .raw .materials, .semi-finished .stores .or .hold .points, .or .a .work .backlog
.that .is .purposely .maintained .behind .a .work .center; .in .TOC, .it .can .be .time .or
.material .and .support .thruput .and/or .due .date .performance .maintained .at .the
, .constraint, .convergent .points .(with .a .constraint .part), .divergent .points, .and
.shipping .points
Buffer .management .- .CORRECT .ANSWER-In .TOC, .process .where .all .expediting
.in .a .shop .is .driven .by .what .is .scheduled .to .be .in .the .buffers .(constraint,
.shipping, .or .assembly); .by .expediting .into .buffers, .system .avoids .idleness .at
.the .constraint .and .prevents .missed .due .date
Business .plan .- .CORRECT .ANSWER-Statement .of .long-range .strategy .and
.revenue, .cost, .and .profit .objectives .usually .accompanied .by .budgets, .a
.projected .balance .sheet, .and .a .cash .flow .(source .and .application .of .funds)
.statement; .document .consisting .of .the .business .details .(organization, .strategy,
.and .financing .tactics)
Capable-2-promise .- .CORRECT .ANSWER-Process .of .committing .orders .against
.available .capacity .as .well .as .inventory. .May .involve .multiple .manufacturing .or
.distribution .sites. .Used .to .determine .when .a .new .or .unscheduled .customer
.order .can .be .delivered. .Employs .a .finite-scheduling .model .of .manufacturing
.system .to .determine .when .an .item .can .be .delivered. .Includes .any .constraints
.that .might .restrict .production, .such .as .availability .of .resources, .lead .times .for
.raw .materials .or .purchased .parts, .and .requirements .for .lower-level .components
.or .subassemblies. .The .resulting .delivery .date .takes .into .consideration
.production .capacity, .current .manufacturing .environment, .and .future .order
.commitments. .Objective .is .to .reduce .time .spent .by .planners .in .expediting
.orders .and .adjusting .plans .because .of .inaccurate .delivery-date .promises
Capacity .control .- .CORRECT .ANSWER-Process .of .measuring .production .output
.and .comparing .it .with .the .capacity .plan .to .determine .if .variance .exceeds .pre-
established .limits .and .taking .action .to .get .back .on .plan .if .limits .are .exceeded
Capacity .management .- .CORRECT .ANSWER-Function .of .establishing,
.measuring, .monitoring, .and .adjusting .limits .of .capacity .in .order .to .execute .all
.mfg .schedules; .executed .at .4 .levels: .resource .requirements .planning, .rough-
cut .capacity .planning, .capacity .requirements .planning, .and .input/output .control
Capacity .planning .- .CORRECT .ANSWER-Process .of .determining .amount .of
.capacity .required .to .produce .in .the .future; .may .be .performed .at .aggregate .or
.product-line .(RRP), .master-schedule .level .(R-CCP), .and .materials .requirements
.planning .(CRP)
Capacity .requirements .planning .(CRP) .- .CORRECT .ANSWER-Process .of
.determining .in .detail .amount .of .labor .and .machine .resources .required .to
.complete .task .of .production; .inputs .are .open .orders .and .planned .orders;
.checks .against .all .time .periods
Carrying .cost .- .CORRECT .ANSWER-% .of .dollar .value .of .inventory .per .unit .of
.time .(generally .one .year); .depends .mainly .on .the .cost .of .capital .invested .as
.well .as .such .costs .of .maintaining .the .inventory .as .taxes .and .insurance,
Exam Questions and Answers A+
Graded
ABC .classification .- .CORRECT .ANSWER-Process .of .classifying .items .in
.descending .order .based .on .annual .dollar .volume .or .some .other .criteria. .The
.list .is .then .split .into .3 .classes .- .A, .B, .and .C. .A .represents .10-20% .of .items .but
.50-70% .of .dollar .volume; .B .represents .20% .of .items .and .20% .of .dollar .volume;
.C .represents .60-70% .of .items .but .10-30% .of .dollar .volume. .This .principle
.states .that .effort .and .money .can .be .saved .by .applying .looser .controls .to .the
.low .dollar .volume .items .(C .class) .than .the .higher .dollar .volume .items .(A .& .B
.classes) .and .applies .to .inventory, .purchasing, .sales, .etc.
Advance .ship .notice .(ASN) .- .CORRECT .ANSWER-Electronic .data .interchange
.(EDI) .notification .of .shipment .of .goods
Andon .- .CORRECT .ANSWER-Electronic .board .that .provides .visibility .of .floor
.status .and .gives .info .to .help .coordinate .efforts .linked .to .work .centers; .green
.light .= .running, .red .light .= .stop, .yellow .light .= .needs .attention
Anticipation .inventories .- .CORRECT .ANSWER-Any .additional .inventory .above
.basic .pipeline .stock .to .cover .projected .trends .of .increased .sales, .planned
.promo .programs, .seasonal .fluctuation, .plant .shutdowns, .and .vacations
Assemble-2-order .- .CORRECT .ANSWER-Production .environment .where .a .good
.or .service .can .be .assembled .after .receipt .of .a .customer's .order. .The .key
.components .(or .ingredients) .used .in .assembly .or .finishing .process .are
.planned .and .stocked .in .anticipation .of .a .customer .order. .Receipt .of .order
.initiates .assembly .of .the .customized .product. .Useful .strategy .when .a .large
.number .of .end .products .can .be .assembled .from .common .components
Available .inventory .- .CORRECT .ANSWER-On-hand .inventory .balance .minus
.allocations, .reservations, .backorders, .and .quantities .held .for .quality .problems
Backflush .- .CORRECT .ANSWER-Method .of .inventory .bookkeeping .where .the
.book .inventory .is .automatically .reduced .after .completion .of .activity .on
.component's .upper-level .parent .item .based .on .what .should .have .been .used .as
,.specified .on .the .BOM .and .allocation .records; .disadvantage .is .difference
.between .book .inventory .and .physical .OH .inventory
Backhauling .- .CORRECT .ANSWER-Process .of .transportation .returning .from
.original .destination .point .to .point .of .origin; .can .be .full, .partial, .or .empty .load
Backlog .- .CORRECT .ANSWER-All .customer .orders .received .but .not .yet .shipped
.(open .orders .or .order .board)
Backorder .- .CORRECT .ANSWER-Unfulfilled .customer .order .or .commitment. .An
.immediate .(or .past .due) .demand .against .an .item .whose .inventory .is
.insufficient .to .satisfy .the .demand
Back .scheduling .- .CORRECT .ANSWER-Technique .for .calculating .operation .start
.dates .and .due .dates; .start .with .order .due .date .and .work .backwards .to
.calculate .required .start .date .and/or .due .dates .for .each .operation
Batch .- .CORRECT .ANSWER-Qty .scheduled .to .be .produced .or .in .production;
.type .of .mfg .process .used .to .produce .items .with .similar .designs .& .cover .wide
.range .of .order .volumes; .items .ordered .are .of .a .repeat .nature
Bill .of .lading .- .CORRECT .ANSWER-Document .issued .by .a .carrier .which .details
.a .shipment .of .merchandise .and .gives .title .of .that .shipment .to .a .specified
.party.
Bill .of .material .(BOM) .- .CORRECT .ANSWER-Listing .of .all .the .subassemblies,
.intermediates, .parts, .and .raw .materials .that .go .into .a .parent .assembly .showing
.the .quantity .of .each .required .to .make .an .assembly; .used .in .conjunction .with
.the .master .production .schedule .to .determine .the .items .for .which .purchase
.requisitions .and .production .orders .must .be .released; .list .of .all .the .materials
.needed .to .make .one .production .run .of .a .product, .by .a .contract .manufacturer,
.of .piece .parts/components .for .its .customers
Bonded .warehouse .- .CORRECT .ANSWER-Buildings .or .parts .of .a .building
.designated .by .Sec .of .Treasury .for .storing .imported .goods, .operated .under
.supervision .of .US .Customs
Bottleneck .- .CORRECT .ANSWER-Facility, .function, .department, .or .resource
.whose .capacity .is .less .than .the .demand .placed .upon .it; .machine .or .work
.center
Break-bulk .- .CORRECT .ANSWER-Dividing .truckloads .of .similar .items .into
.smaller, .more .appropriate .qty's .for .use
Buffer .- .CORRECT .ANSWER-Qty .of .materials .awaiting .further .processing; .can
.refer .to .raw .materials, .semi-finished .stores .or .hold .points, .or .a .work .backlog
.that .is .purposely .maintained .behind .a .work .center; .in .TOC, .it .can .be .time .or
.material .and .support .thruput .and/or .due .date .performance .maintained .at .the
, .constraint, .convergent .points .(with .a .constraint .part), .divergent .points, .and
.shipping .points
Buffer .management .- .CORRECT .ANSWER-In .TOC, .process .where .all .expediting
.in .a .shop .is .driven .by .what .is .scheduled .to .be .in .the .buffers .(constraint,
.shipping, .or .assembly); .by .expediting .into .buffers, .system .avoids .idleness .at
.the .constraint .and .prevents .missed .due .date
Business .plan .- .CORRECT .ANSWER-Statement .of .long-range .strategy .and
.revenue, .cost, .and .profit .objectives .usually .accompanied .by .budgets, .a
.projected .balance .sheet, .and .a .cash .flow .(source .and .application .of .funds)
.statement; .document .consisting .of .the .business .details .(organization, .strategy,
.and .financing .tactics)
Capable-2-promise .- .CORRECT .ANSWER-Process .of .committing .orders .against
.available .capacity .as .well .as .inventory. .May .involve .multiple .manufacturing .or
.distribution .sites. .Used .to .determine .when .a .new .or .unscheduled .customer
.order .can .be .delivered. .Employs .a .finite-scheduling .model .of .manufacturing
.system .to .determine .when .an .item .can .be .delivered. .Includes .any .constraints
.that .might .restrict .production, .such .as .availability .of .resources, .lead .times .for
.raw .materials .or .purchased .parts, .and .requirements .for .lower-level .components
.or .subassemblies. .The .resulting .delivery .date .takes .into .consideration
.production .capacity, .current .manufacturing .environment, .and .future .order
.commitments. .Objective .is .to .reduce .time .spent .by .planners .in .expediting
.orders .and .adjusting .plans .because .of .inaccurate .delivery-date .promises
Capacity .control .- .CORRECT .ANSWER-Process .of .measuring .production .output
.and .comparing .it .with .the .capacity .plan .to .determine .if .variance .exceeds .pre-
established .limits .and .taking .action .to .get .back .on .plan .if .limits .are .exceeded
Capacity .management .- .CORRECT .ANSWER-Function .of .establishing,
.measuring, .monitoring, .and .adjusting .limits .of .capacity .in .order .to .execute .all
.mfg .schedules; .executed .at .4 .levels: .resource .requirements .planning, .rough-
cut .capacity .planning, .capacity .requirements .planning, .and .input/output .control
Capacity .planning .- .CORRECT .ANSWER-Process .of .determining .amount .of
.capacity .required .to .produce .in .the .future; .may .be .performed .at .aggregate .or
.product-line .(RRP), .master-schedule .level .(R-CCP), .and .materials .requirements
.planning .(CRP)
Capacity .requirements .planning .(CRP) .- .CORRECT .ANSWER-Process .of
.determining .in .detail .amount .of .labor .and .machine .resources .required .to
.complete .task .of .production; .inputs .are .open .orders .and .planned .orders;
.checks .against .all .time .periods
Carrying .cost .- .CORRECT .ANSWER-% .of .dollar .value .of .inventory .per .unit .of
.time .(generally .one .year); .depends .mainly .on .the .cost .of .capital .invested .as
.well .as .such .costs .of .maintaining .the .inventory .as .taxes .and .insurance,
