APICS Certified in Planning and Inventory Management (CPIM) Exam 1 Practice

These questions are part of the practice quiz. Start practicing

• Which document lists all materials and quantities required to produce a product, enabling release of purchase requisitions and production orders?
• Which metric represents the rate at which production can be processed within system constraints?
• Which lot-sizing technique sets the order quantity equal to the net requirements for a fixed number of periods, making the number of periods to order variable?
• Which term describes continuous improvement involving everyone to identify and eliminate waste in machinery, labor, or production methods?
• What facility layout groups operations of similar nature or function together and is based on departmental specialties?
• Which schedule spreads material and labor requirements as evenly as possible over time?
• Which concept covers routing and dispatching work to be accomplished through the production facility and performing supplier control; scheduling, control, measure, and evaluation of operations?
• What term represents the rate of change of an item with respect to time, indicating faster turnover and quicker order-to-delivery response?
• Which process describes determining the amount of capacity required to produce in the future, potentially at aggregate/product-line (RRP), master-schedule level (R-CCP), and materials requirements planning (CRP)?
• Which production planning method maintains a stable production rate while allowing inventory to vary to meet demand?
• Which term is associated with picking items in waves based on common carrier or destination to minimize waiting times?
• Which layout describes resources arranged sequentially based on product's routing?
• What does ERP stand for in business systems?
• What term describes the capability to identify the sources of a given item's gross requirements and/or allocations?
• Which manufacturing approach describes producing families of parts within a single line or cell of machines, with operators working only within that line or cell?
• Which term refers to the method of subdividing a picking list by areas within a storeroom for efficient and rapid order picking and requires grouping to a single location before delivery or to different locations such as work centers?
• What term describes inventory that is in the transportation network and the distribution system?
• Process of developing one or more schedules to enable mixed-model production; goal is to achieve a day’s production each day.
• Which term describes inventory carried to cushion against forecast error?
• Which term describes the actual descriptions in words of the functions and features customers desire for goods and services?
• Which term refers to the physical storage, handling, and shipping of goods to and from production or distribution points?
• Which term refers to additional inventory held above the basic pipeline stock to cover forecasted sales increases, promotions, seasonal fluctuations, plant shutdowns, and vacations?
• In TOC, which term describes the procedure for determining the general flow of parts and products (logical product structure) using V, A, T, I structures?
• Which form of inventory is built up as a hedge against potential future events that could disrupt operations?
• Which management approach is focused on long-term organizational success through customer satisfaction and broad participation in improvements?
• What does CRP stand for, as used in manufacturing planning?
• Detailed production schedule for a resource that sets the pace for the entire system; must reconcile the customer requirements with system constraint(s)
• Which cost category is associated with measuring and inspecting products to determine conformance to quality requirements?
• Which MRP technique adjusts order release timing based on lead time so receipts occur as planned?
• What is the term for the expected output capability of a resource or system, calculated from planned hours, efficiency, and utilization?
• Which term is the process of moving finished goods from manufacturing to customers, including returns to manufacturing?
• Which time is associated with elements of a setup procedure performed while the process or machine isn't running?
• What production layout uses a U-shaped line to minimize walking time and allow workers to perform multiple tasks?
• Which term refers to shipments moved by different types of equipment combining the best features of each mode?
• What term describes the portion of inventory kept between manufacturing or distribution entities to create independence between processes and decouple supply from usage?
• Which term means inventory usually spare parts and finished goods located in the distribution system (e.g., in warehouses, in transit between warehouses and the consumer)?
• Which term describes a facility, function, department, or resource whose capacity is less than the demand placed upon it?
• Using same set of components in a variety of finished goods.
• Which role acts as the middle man between the carrier and the organization shipping products, often combining smaller shipments to achieve lower bulk costs?
• Which transportation method moves shipments using more than one mode of transport to combine the advantages of each mode?
• Which term best describes the consolidation of several units into larger units to reduce handling?
• Regular route for pickup of mixed loads from several suppliers; one truck makes multiple stops before delivering a load to the customer's plant.
• Which technique builds a schedule by moving forward in time and observing capacity limits, typically using a Gantt chart?
• What is manufacturing lead time?
• Which planning method determines the need to replenish inventory at branch warehouses; time-phased order point exploded via MRP logic to become gross requirements on the supplying source? In multilevel networks, this process can continue down to master production schedules.
• Production environment in which a good or service can be packaged after receipt of a customer order; item is common across many different customers; packaging determines the end product.
• Which inventory is built up to smooth production in anticipation of peak seasonal demand?
• Which term refers to inventory used to support general operations and maintenance, such as spare parts and consumables?
• Which term sets the pace of production to match the rate of customer demand and is the heartbeat of lean production systems?
• Which planning method integrates all resources of a manufacturing company, including unit and dollar planning, with what-if simulations, and includes processes such as S&OP, MPS, MRP, and CRP?
• What term describes the average amount of inventory required to meet customer demand between orders from suppliers?
• Resource requiring longest time to produce among the set of activities in a line or cell; determines the flow through the line or cell at market rate.
• Which type of inventory is held to guard against stockouts caused by demand variability and lead-time uncertainty?
• Which term describes an unfulfilled customer order due to insufficient inventory, i.e., an immediate or past-due demand against an item with stockouts?
• Which signaling method is associated with pull systems and triggers replenishment when downstream needs arise?
• What is the process by which a supplier is notified daily of actual sales or warehouse shipments and commits to replenish?
• Which BOM type shows only the direct components of a parent item and not its subassemblies?
• Which term describes the amount of time potential customers are willing to wait for delivery?
• Which cost category is associated with activities to detect defects before shipping?
• Which term is described as the framework for guiding companies thru the process of formally committing to, assessing, defining, implementing, measuring, and communicating the UN Global Compact and its principles?
• Which term refers to inventory that resides in transit within the distribution network and the transportation system?
• In a production system, which term describes the resource whose capacity is less than demand and thus often limits throughput?
• Which term refers to the process of measuring production efficiency by comparing the final output to the initial input as a ratio?
• Which production environment is described as Assemble-2-order, where a product is assembled after receipt of a customer order and components are planned in advance?
• What term refers to the quantity planned to be received at a future date as a result of a planned order release?
• What technique uses bill of materials data, inventory data, and the master production schedule to calculate material requirements and release replenishment orders?
• Which system uses electronic tags to store data about items and allows data retrieval without close proximity or line of sight?
• Which term describes the practice of classifying items into A, B, and C categories based on annual dollar volume and usage, where A items are few but contribute most of the value?
• Which display shows the components directly used in a parent item and shows only a one-level relationship?
• The network through which products travel from producer to end user, often including intermediaries
• Which production planning method maintains a stable inventory level while production varies to meet demand?
• In planning, which concept links the demand for a final product to the sources of its material requirements?
• Which term refers to all customer orders that have been received but have not yet shipped (open orders or order board)?
• What term describes all customer orders that have been received but not yet shipped?
• Which term refers to activities related to receiving, storing, and shipping materials to and from production or distribution locations?
• Triggering of material movement to a work center only when that work center is ready to begin the next job; eliminates the queue in front but can cause a queue at the end of previous center.
• Which cost category is associated with preventing defects before they occur?
• Which time is defined as the time associated with a setup performed while the process or machine isn't running?
• Which type of cost includes warranty and returns?
• Which chart is commonly used to monitor production progress by comparing the production schedule with actual progress?
• Which term refers to the document containing the business details (organization, strategy, and financing tactics)?
• Which inventory management technique processes material through a plant and into finished goods without entering a formal stock area?
• Paperless (electronic) exchange of trading documents, such as purchase orders, shipment authorizations, advanced shipment notices, and invoices, using standardized document formats
• Which term defines the net flow of dollars into or out of a proposed project as the algebraic sum of all cash receipts, expenses, and investments in a given period?
• Which production planning method maintains a stable inventory level while production is varied to meet demand?
• What is available capacity on non-constraint resources beyond what is required to support the constraint called?
• Which concept describes calculation of capacity required at work centers in time periods required regardless of capacity available to perform work?
• Which term describes the quantity scheduled to be produced or the manufacturing process used for items with similar designs across wide order volumes?
• Which term describes warehouse location methodology that includes some characteristics of fixed and random location methods; holds certain kinds of items, depending on physical characteristics or frequency of use?
• What term refers to the total line-haul cost including driver's wages and depreciation of the vehicle?
• Which inventory concept results when it is economical to purchase or produce in larger lots than needed for immediate use due to quantity discounts or setup costs?
• Which term describes spreading orders out in time so that the amount of work in sequential time periods is distributed evenly and is achievable?
• Which term refers to a plan that is frozen and cannot be changed automatically by the computer in an MRP system?
• Which quality tool shows the operations, transportation, storages, delays, and inspections related to a process?
• Which term refers to the voluntary initiative focusing on human rights, labor standards, the environment, and anticorruption?
• Which layout concept is designed to minimize walking by workers performing several tasks with similar cycle times?
• What is the term for on-hand inventory balance minus allocations, reservations, backorders, and quantities held for quality issues?
• Which term describes the function of routing and dispatching work in a production facility and evaluating the effectiveness of operations?
• What term refers to the total product cost including logistics such as warehousing, transportation, and duties?
• Storage technique where parts are placed in any space that is empty when they arrive at storeroom and uses a locator file to identify part locations?
• Which logistics concept involves packing products on incoming shipments so they can be sorted at warehouses or for outbound shipments based on final destinations, moving items from inbound to outbound docking without storage?
• Which inventory accounting method reduces the book inventory automatically after completion of activity on a component's upper-level item based on what should have been used as specified on the BOM?
• Which quality cost category includes formal evaluation and audits of quality within the firm?
• Which technique translates the master production schedule into required resources and helps determine feasibility given capacity constraints?
• Which term designates a production area consisting of people and machines with similar capabilities, used for capacity requirements planning and detailed scheduling?
• What forecast method is based on internal factors, such as an average of past sales?
• Measurement of actual output to the standard output expected
• Which MRP row is derived from planned order receipts by offsetting the planned receipt quantity to the left by the appropriate lead time?
• Which signaling system uses a card attached to parts to signal withdrawal from feeding operations in a JIT system?
• Which term describes a specific production area consisting of one or more people and/or machines with similar capabilities that can be treated as one unit for capacity planning and detailed scheduling?
• Proven capacity calculated from actual performance data, usually expressed as the average number of items produced multiplied by standard hours per item.
• What is the statistically determined line on a control chart that marks the boundary for upper or lower limits of variation?
• Which concept is the process of measuring production output against the capacity plan and taking action if variance exceeds pre-established limits?
• Which term names the TOC analysis that describes product flow using the four logical structures V, A, T, and I?
• The metric for the ratio of actual output to standard output, used to gauge process performance
• Which method ensures a work center is not overloaded by assigning only what can be completed in a period and often uses computer-based leveling?
• What is the time interval from when a customer order is received to when the product is delivered?
• What measure indicates the time a job remains at a work center after an operation is completed until it moves to the next operation?
• Which JIT philosophy describes level production throughout the supply chain to match the planned rate of end product sales?
• Which technique distributes work across stations so that processing times are as close to equal as possible?
• Which term was created to simplify international transactions?
• What form of inventory is built up to buffer against events that may not happen, such as labor strikes or price changes?
• Which term refers to an order to machine shop for tool manufacture or equipment maintenance, including authorization to start work on an order?
• Strain or overburden.
• Which term is a document listing every parent item that requires a given component and the quantities needed from the bill of materials?
• The master production schedule is a set of planning numbers that drives which process?
• Which type of inventory is held as a cushion to protect against forecast error?
• Who acts as the intermediary between the carrier and the organization shipping products, often consolidating smaller shipments to take advantage of bulk costs?
• Which concept groups machines into a line or cell and restricts workers to operate only within that line or cell to produce families of parts?
• A small setup time to have small production batches and small WIP inventory is an example of which concept?
• What is the term for the place where vehicles are loaded and unloaded, and where cargo is weighed and re-routed?
• Which layout is characterized by grouping operations by function, creating departmental specializations?
• Which term refers to the paths over which a transportation company moves cargo, including right-of-way, roadbed, and railroad tracks?
• In MRP terms, which entry represents the quantity planned to be received in the future as a result of a released order?
• Which term is defined as the net flow of dollars into or out of a proposed project, the algebraic sum of all cash receipts, expenses, and investments in a given period?
• In TOC, which term is described as the TOC analysis that determines general flow and identifies gating, convergent points, divergent points, and shipping points?
• As a time-phased system, MRP makes recommendations to reschedule open orders when due dates and need dates are not in phase. Which concept is this describing?
• Which chart is the earliest planning and control tool that shows the relationship between planned performance and actual performance over time, used for machine loading or progress monitoring?
• What form of manufacturing has jobs pass through functional departments in lots, and each lot may have a different routing?
• Which term refers to the transportation of goods from supplier to buyer?
• Which term refers to a quality program focused on reducing process variability and defects per million opportunities?
• Which record-keeping concept ensures that every inventory transaction is posted to maintain a current record of inventory?
• Which manufacturing organization is described as grouping similar equipment by function, with each job potentially following a different routing?
• In TOC, which term is the procedure for determining the general flow of parts and products considering a logical product structure?
• What term describes the computer record or manual document in which each inventory transaction is posted to maintain a current inventory record?
• A facility that houses finished goods and/or service items and serves as a distribution point
• Which term refers to the production scheduling approach that enables mixed-model production across a single day?
• Which manufacturing order quantity practice divides an order into smaller quantities after release to reduce lead time?
• Method of picking orders in which items on one order are picked before items on next order is picked.
• Which technique for capacity control monitors planned and actual inputs and outputs of a work center, with planned inputs and outputs developed by CRP and approved by management?
• In lean planning, which term corresponds to a 'Statement of objectives'?
• In distribution, what costs vary with distance traveled rather than with product weight?
• Charges when rail freight and ships are retained beyond a specified loading or unloading time.
• Which inventory accounting method can cause discrepancies between book inventory and physical counts due to using expected rather than actual consumption?
• Which term describes a production environment where end packaging is determined after customer order and is common across multiple customers?
• What term describes a metric used to indicate future trends in the economy, such as housing starts?
• What term describes recognizing all demand for goods and services to support the marketplace, prioritizing it when supply is lacking?
• Which network planning technique analyzes a project’s activities and times to identify the critical path and schedule constraints?
• Which process determines in detail the labor and machine resources needed to complete a production task; inputs are open orders and planned orders; checks across all time periods?
• Which product design strategy delays differentiating features until the latest possible point in the supply chain?
• Which term corresponds to the UN Global Compact framework for guiding corporate commitments to its principles?
• Final assembly schedule applies to which environments?
• Which term refers to the facility that receives items in large lots, stores them temporarily, and breaks them into smaller lots destined for a variety of locations?
• Electronic standard for exchanging business documents between organizations
• Which listing shows every parent item that calls for a given component and the respective quantity required from the BOM file?
• In distribution, which cost element varies with distance rather than weight?
• Which term describes the process of committing orders against available capacity and inventory, using a finite-scheduling model to determine delivery timing and considering constraints such as resources, lead times, and subassemblies?
• Which format includes time periods, forecast, customer orders, projected available balance, available-to-promise, and MPS?
• Which process involves evaluating alternate strategies by analyzing the consequences of changes to forecasts, manufacturing plans, and inventory levels?
• Process of transportation returning from the original destination point to the point of origin, which can be full, partial, or empty load, is known as what?
• What term describes the approach where multiple areas of the firm, including suppliers and customers, participate in the product design to accelerate time to market and improve quality and costs?
• Which term describes a regular route for collecting mixed loads from multiple suppliers before delivering one consolidated load to the customer's plant?
• What term describes the amount of planned work scheduled for and released to a facility during a specific period?
• Which manufacturing form is characterized by production in fixed plant locations using general purpose equipment to handle a wide range of product designs?
• Which concept is described by monitoring input and output to detect discrepancies from plan?
• Which term describes a warehouse location methodology that mixes fixed and random locations based on item characteristics?
• In TOC, which term is associated with considering system control points such as gating operations, convergent points, divergent points, constraints, and shipping points?
• What is the term for the transportation process where a load returns from its destination to the origin, and may be full, partial, or empty?
• Which document accompanies a shipment and lists total quantities and destinations, often used to track what is being sent?
• What term refers to charges assessed when rail freight and ships are retained beyond the specified loading or unloading time?
• What document details a shipment and transfers title to a specified party?
• What is the term for an electronic board that displays floor status and uses color signals to coordinate work centers (green for running, red for stop)?
• What term refers to installing and maintaining a product after sale, including training?
• Which technique calculates operation start dates by working backward from the order due date?
• Which term is a TOC analysis used to map the general flow of components and assemblies using V, A, T, I?
• Which document contains a list of goods with shipping instructions related to a shipment?
• Which certification procedures verify that a supplier operates, maintains, improves, and documents effective procedures related to customer requirements?
• Which term refers to the information detailing the manufacturing path and operations sequence for an item?
• Which term describes the method of selecting and sequencing picking lists to minimize waiting time of delivered material; shipping orders in waves of common carrier or destination with manufacturing orders related to work centers?
• Activity associated with movement of material (FG or parts) from the mfg to customer; encompass transportation, warehousing, inventory control, material handling, order administration, site & location analysis, industrial packaging, data processing, and communications necessary for effective mgmt; includes all activities related to physical distribution, as well as return of goods to mfg; systematic division of a whole into discrete parts with different characteristics.
• Which term describes the amount of good or acceptable material available after the completion of a process, usually computed as final amount divided by initial amount expressed as decimal or percentage?
• Which term refers to the function of establishing, measuring, monitoring, and adjusting capacity limits to execute all manufacturing schedules across levels including resource requirements planning, rough-cut capacity planning, capacity requirements planning, and input/output control?
• Which term is used to describe dividing truckloads into smaller quantities for use?
• The electronic notice that accompanies a shipment to inform the recipient of the contents is called what?
• Which term refers to actual customer descriptions in words of features and functions customers desire for goods and services?
• Which set of concepts focuses on reducing variability in processes and defects in products, often cited as a standard with 3.4 defects per million opportunities?
• Which quality cost category is focused on preventing defects before they occur?
• Which planning approach uses breakthrough planning with up to four vision statements guiding the company's direction for the next five years, with goals developed from the vision statements and periodic audits to monitor progress?
• What is a planned order that can be frozen in time and quantity, requiring manual approval to change?
• In Theory of Constraints, which process is expediting driven by what is scheduled to be in the buffers to avoid idle at the constraint and missed due dates?
• Which term describes the grouping of management functions supporting the complete cycle of material flow, from purchase to distribution?
• Which item is a category of quality costs?
• Which term is described as a TOC technique for mapping the general flow of parts and products and is abbreviated VATI?
• What term describes the percentage of the dollar value of inventory per unit of time, generally yearly, influenced by capital costs and inventory-related costs?
• Which cost category includes costs resulting from defects discovered after products have been delivered to customers?
• Which term describes a storage facility for imported goods under customs control?
• Which cost category includes costs that go wrong before the product reaches the customer, including rework, scrap, downgrades, re-inspection, retest, and process losses?
• Which concept minimizes all resources used in enterprise activities, including time?
• Which term refers to inventory management where material flows through the plant without formal stock area?
• Which forecasting method is described as extrinsic and uses external indicators?
• Which term is the planning function that uses forecasts and aggregates items by region or lifecycle stage?
• What term describes the consolidation of several units into larger units to reduce handling?
• Which term describes the distribution route from raw materials through consumption that products travel?
• Which maintenance approach emphasizes preventive maintenance and ongoing efforts to adapt and refine equipment, with involvement of all qualified maintenance personnel?
• In CPIM, ERP provides a framework for organizing, defining, and standardizing business processes to plan and control an organization so it can use its internal knowledge to seek external advantage.
• Which production philosophy focuses on minimizing the use of all resources and eliminating non-value-adding activities?
• What term describes the line on the master schedule grid that shows the anticipated build schedule for items assigned to the master scheduler?
• Which concept uses planned inputs and outputs for each work center developed by CRP and approved by management, with actual inputs compared to planned to identify variances?
• Type of fixed order qty model that determines amt of item to be purchased or manufactured at one time
• Which diagram is used to graph process performance data against predetermined control limits to detect assignable causes of variation?
• Which term describes the process of triggering movement of material to the next operation only when that operation is ready, thereby eliminating one queue but potentially creating another?
• What is the term for the process that uses BOM data, inventory data, and the MPS to determine material requirements?
• Electronic data interchange notification of shipment of goods is commonly known as what?
• Which forecasting method uses a correlated leading indicator and is more useful for large aggregations?
• Program where specific quality and packaging requirements are met before the product is released; prequalified goods are shipped directly into the customer's inventory; eliminates costly handling of components and enables them to move into production
• What term describes the time for setup activities performed while the process is running?
• Which term represents variability or fluctuation in a process?
• Which signaling method is often referred to as the signaling system used in Toyota's production, characterized by cards or signals?
• Which term describes the total costs associated with poor quality products or services, including internal and external failure costs, appraisal, and prevention?
• Which capacity function is described as establishing, measuring, monitoring, and adjusting capacity limits to execute all schedules, performed at four levels: resource requirements planning, rough-cut capacity planning, capacity requirements planning, and input/output control?
• Which facility stores imported goods designated by the Secretary of the Treasury and supervised by US Customs?
• Which document lists the pieces in a shipment, usually covering an entire load and including items, quantities, weight, and destination details?
• What is the term for information detailing the manufacturing path of a product, including the sequence of operations and the work centers involved?
• Which term describes the approach of using the same component across different finished goods?
• Which of the following is an RCCP approach?
• Which document authorizes the purchasing department to buy specified materials in specified quantities within a specified time?
• What is the rate of production or the rate at which something can be processed called?
• Which term is defined as a voluntary initiative whereby companies embrace core values in the areas of human rights, labor standards, the environment, and anticorruption?
• Inventory held in the distribution system, such as in warehouses or in transit
• Which term represents the capacity that has actually been achieved, based on actual performance data?
• What is the process of converting MPS into requirements for key resources and comparing to available capacity to help establish a feasible MPS, including the approaches: bill of labor, capacity planning using overall factors, and resource profile?
• Which production planning approach keeps a stable output rate and adjusts inventory levels to meet demand?
• In materials management, what term refers to the time from material entering a facility until it exits, and in industrial engineering, the time between completions of two discrete units?
• Which document outlines long-range strategy and financial objectives usually accompanied by budgets and cash flow?
• Which manufacturing system describes work flowing along a stationary path with little variance in the rate of flow, known as repetitive manufacturing when discrete units are produced?
• Which term describes the movement of items from one point to another inside a facility or between facilities?
• Which term describes dissimilar machines grouped into a production unit to produce a family of parts with similar routings?
• Final assembly schedule (FAS) is used in which production environments?
• Which inventory bookkeeping method automatically reduces the book inventory after completion of activity on a component's upper-level item based on what should have been used as specified on the BOM?
• Unevenness or variability.
• What product design strategy shifts product differentiation closer to the consumer by postponing identity changes (such as assembly or packaging) to the last possible supply chain location?
• Which concept describes the process of committing orders against capacity and inventory to reduce expediting and inaccurate delivery promises?
• What term means responding to a customer’s needs?
• Which practice involves stopping the production line when a defect occurs?
• Which term describes the quantity or volume of output completed at a workstation before switching to a different type of work or changing equipment setup?
• Which process divides truckloads of similar items into smaller quantities for use?
• Selecting and sequencing of available jobs to be run at individual workstations and the assignment of those jobs to workers.
• Which analytical tool is used to analyze process dispersion by displaying relationships between potential causes and effects?
• Which term describes the document consisting of the business details (organization, strategy, and financing tactics)?
• Which term uses forecasts and experience to estimate demand across items and points in the supply chain; several forecasting techniques may be used; families of items aggregated (region or lifecycle)?
• Which listing shows all subassemblies, parts, and raw materials for a parent assembly and quantities, used to determine items for requisitions and production orders?
• What term denotes the space required to store a given number of pallets in a warehouse?
• Which cost category includes costs arising from defects detected during production or before delivery?
• Which concept is primarily concerned with increasing the speed of transactions to improve asset turnover and order responsiveness?
• Which term is described as the TOC approach for analyzing general parts flow, using the four logical structures V, A, T, and I?
• Which statement describes the integration of MRP output with financial reports such as the business plan, purchase commitment report, shipping budget, and inventory projections in dollars?
• What lot-sizing technique generates planned orders in quantities equal to net requirements in each period?