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CPIM Real Exam Questions

Certified in Planning and Inventory Management (CPIM 8.0)

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Question 1 Single choice

What activity is a useful element in the change process?

  1. A

    Creating short-term wins

  2. B

    Calculating a break-even point

  3. C

    Performing a SWOT analysis

  4. D

    Developing key performance indicators (KPIs)

Show answer and explanation

Correct answer: A

Explanation

Creating short-term wins is a critical activity in the change process, particularly in change management models like Kotter's 8-Step Process. These early successes help build momentum, validate the change effort, and sustain motivation across the organization.

Question 2 Single choice

Information regarding a major new customer is received from sales. The company's most appropriate initial response would be to adjust the:

  1. A

    production volume.

  2. B

    master production schedule (MPS).

  3. C

    sales and operations plan.

  4. D

    forecast.

Show answer and explanation

Correct answer: D

Explanation

When new customer information is received from sales, the most appropriate initial response is to adjust the forecast. This ensures that future demand planning reflects the updated expectations, which can then flow into the sales and operations plan (S&OP) and eventually the master production schedule (MPS).

Question 3 Single choice

The question below is based on the following information:

Work Center 1 has an available capacity of 1,200 hours per month.

Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Months 1 through 3?

  1. A

    50

  2. B

    150

  3. C

    1.250

  4. D

    3.750

Show answer and explanation

Correct answer: B

Explanation

Step 1: Calculate required capacity per month

Product A:

0.75 hours/unit x 1,000 units = 750 hours

Product B:

0.25 hours/unit x 2,000 units = 500 hours

Total required per month:
750 + 500 = 1,250 hours

Available capacity per month: 1,200 hours

Difference per month:
1,250 - 1,200 = 50 hours over capacity Step 2: Cumulative over 3 months:

50 x 3 = 150 hours

Question 4 Single choice

What is done by individual worker who, instead of checking for defects, checks for errors that will cause defects?

  1. A

    Successive check

  2. B

    Self-check

  3. C

    Source inspection

  4. D

    Source correction

Show answer and explanation

Correct answer: C

Explanation

Source inspection is performed by the individual worker to identify errors at the source-before they result in defects. Rather than checking the final product, the focus is on preventing defects by detecting error conditions early in the process.

Question 5 Single choice

The time spent In queue by a specific manufacturing job is determined by which of the following factors related to the order?

  1. A

    Lot size

  2. B

    Priority

  3. C

    Setup time

  4. D

    Run time

Show answer and explanation

Correct answer: B

Explanation

The time spent in queue by a specific manufacturing job is determined by the priority of the order. Priority is the relative importance or urgency of an order compared to other orders in the system. Priority can be assigned based on various criteria, such as due date, customer preference, profitability, or first-come-first-served. Priority determines the order in which jobs are processed at each workstation and affects the waiting time and flow time of each job. Higher priority jobs have shorter waiting times and lower priority jobs have longer waiting times. Priority can be used as a tool to manage the trade-offs between customer service, capacity utilization, and inventory levels.

Question 6 Single choice

The demand for an item has increasing forecast error, whereas all other factors remain constant.

Which of the following remains constant while maintaining the same customer service level?

  1. A

    Reorder point(ROP)

  2. B

    Safety stock

  3. C

    Inventory investment

  4. D

    Safety factor

Show answer and explanation

Correct answer: D

Explanation

The safety factor is a multiplier based on the desired customer service level (e.g., 95%, 99%) and does not change as forecast error increases. However, the safety stock itself would increase to maintain that service level, since it's calculated using both the safety factor and the standard deviation of forecast error.

Question 7 Single choice

Based on the above table, calculate the mean absolute deviation (MAD).

  1. A

    -25

  2. B

    6.25

  3. C

    18.75

  4. D

    20

Show answer and explanation

Correct answer: C

Explanation

To calculate the Mean Absolute Deviation (MAD):

Step 1: Take the absolute value of each variation Month Variation Absolute Value
1 -30 30
2 -10 10
3 25 25
4 -10 10

Step 2: Sum the absolute values:
30 + 10 + 25 + 10 = 75

Step 3: Divide by the number of periods (4):
75 ÷ 4 = 18.75

Question 8 Single choice

Which of the following outcomes Is a benefit of mixed-model scheduling?

  1. A

    Increased inventory

  2. B

    Improved demand response

  3. C

    Fewer setups

  4. D

    Fewer material shortages

Show answer and explanation

Correct answer: B

Explanation

Mixed-model scheduling enables the production of a variety of products in small batches, allowing the manufacturer to respond more quickly to changes in customer demand without holding excessive inventory.

Question 9 Single choice

Which of the following are those of space and materials handling equipment?

  1. A

    Capital costs

  2. B

    Material costs

  3. C

    Variance costs

  4. D

    Equipment costs

Show answer and explanation

Correct answer: D

Explanation

Space and materials handling equipment refers to physical tools and systems used to move, store, control, and protect materials-such as conveyors, forklifts, racks, etc. The associated costs for these fall under equipment costs, which cover: Purchase price Maintenance Depreciation Operating expenses

Question 10 Single choice

Capacity requirements planning (CRP) is applicable primarily In companies operating In an environment where:

  1. A

    backlog is very low.

  2. B

    the status of work orders is disregarded.

  3. C

    lean principles are used.

  4. D

    material requirements planning (MRP) is used.

Show answer and explanation

Correct answer: D

Explanation

Capacity Requirements Planning (CRP) is primarily used in environments where Material Requirements Planning (MRP) is implemented. CRP uses the planned orders and work orders from MRP to determine whether sufficient capacity exists at work centers to meet production requirements.