CPIM

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JMANDERSON675
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158655
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CPIM
Updated:
2012-06-17 21:45:05
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TEST STUDY MODE
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SUPPLY CHAIN BASICS TEST STUDY MODE
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  1. Which of the following are basic approaches to sales?
    I. Making a range of products that the supplier can supply
    II. Making a range of products the company wants to make
    III. Making what the marketplace wants?

    A. III Only
    B. II Only
    C. I, II, & III
    D. II & III Only
    D. II & III Only
    (this multiple choice question has been scrambled)
  2. Explanation: The two basic approaches to sales are 1. Making a range of products the company wants to make, and then going out into the marketplace to sell the product 2. Making what the marketplace wants, and being better at the competition at making it.
  3. In an ABC environment an A part accounts for what % of items and dollar usage?

    A. 20% of the items account for about 80% of the dollar usage
    B. 30% of the items account for about 15% of the dollar usage
    C. 50% of the items account for about 5% of the dollar usage
    D. About 80% of the items account for about 20% of the dollar usage
    A. 20% of the items account for about 80% of the dollar usage
    (this multiple choice question has been scrambled)
  4. Explanation: From Intro to material management A items about 20% of the items account for about 80% of the dollar usage.
  5. A small group that is tasked with continuously improving a process or throughput is called?

    A. A quality circle
    B. Six sigma group
    C. Management
    D. Kanban card
    A. A quality circle
    (this multiple choice question has been scrambled)
  6. Explanation: Continuous improvement of the process and throughput using small groups for continuous change are called quality circles
  7. The primary advantage of a company turning on electronic data interchange (EDI) with suppliers is that it?

    A. Reduce Transaction time
    B. Reduces need for the buyer function
    C. On the latest technology
    D. increased paperwork
    A. Reduce Transaction time
    (this multiple choice question has been scrambled)
  8. Explanation: EDI Advantages include
    • 1. Reduction of transaction time
    • 2. Quicker responses to changes
    • 3. Reduced paper handling expenses
    • 4. Fewer errors
  9. If an egg supplier delivers his eggs in a standard container only when he receives empties is called what type of a delivery?

    A. Lot Based Delivery
    B. JIT Delivery
    C. Point of Use Delivery
    D. Kanban Delivery
    D. Kanban Delivery
    (this multiple choice question has been scrambled)
  10. Explanation: A kanban delivery the supplier delivers standard containers or product per the number of empties he collected.
  11. All of the following are needed for a closed loop system EXCEPT?

    A. Actual Results
    B. A Machine
    C. Compare of Plan and Actuals
    D. Plan in action
    B. A Machine

    Explanation: The following are needed in a feedback loop
    1. Plan in action
    2. Tracking actual results
    3. Comparing Plan and Actuals
    A machine is not needed because you may have a feedback loop on resource performance or a service. A machine can be used a feedback loop, but it is not required.
    (this multiple choice question has been scrambled)
  12. The Special TV company wants you to develop a production plan for them. Expected opening inventory is 300 TVs and they want to increase that to 400 TVs by the end of the planning period. The number of working days is the same in each period and there are 200 orders on back order. Using a level production strategy, how many finished products should the Special TV company make each period? Use the forecast table below to solve this problem.


    period 1 2 3 4 5
    forecast 1000 1100 900 950 1050

    A. 980
    B. 1060
    C. 1020
    D. 1000
    B. 1060

    Explanation: To resolve this you must (Add all periods together + ending inventory-beginning inventory+backlog)/ Number of Periods =(1000+1100+900+950+1050+400-300+200)/5 =1060
    (this multiple choice question has been scrambled)
  13. Using ABC analysis, what materials SHOULD be cycle counted on a very regular basis?

    A. A Parts
    B. C Parts
    C. All Parts
    D. B Parts
    A. A Parts

    Explanation: "A" parts are high volume/ value parts that should be counted more often for accuracy than B or C parts.
    (this multiple choice question has been scrambled)
  14. Typical strategic performance measures include all of the following EXCEPT?

    A. % of MRP exception measurements produced
    B. Market Share
    C. Growth
    D. Profitability
    A. % of MRP exception measurements produced

    Explanation: Typical strategic measurements for success are profitability, market share, growth, and productivity.
    (this multiple choice question has been scrambled)
  15. What is an approach for comparing your company against a competitor?

    A. Delphi Approach
    B. Quality Improvement
    C. Lean Approach
    D. Benchmarking
    D. Benchmarking

    Explanation: Benchmarking is an approach of comparing yourself with your competitors.
    (this multiple choice question has been scrambled)
  16. The idea of elimination of waste and continuous improvement can only be achieved with the JIT philosophy of?

    A. Kanban
    B. Total Employee Involvement
    C. Poka Yoke
    D. SMED
    B. Total Employee Involvement

    Explanation: The idea of elimination of waste and continuous improvement can only be achieved with the JIT philosophy of total employee involvement. Without the cooperation and involvement from all employees, a JIT environment will fail. Everyone from an operator to a manager must change to implement a JIT environment.
    (this multiple choice question has been scrambled)
  17. Each of the following is a part of the theory of constraints accounting system EXCEPT?

    A. Inventory
    B. Throughput
    C. Cash
    D. Operating Expenses
    C. Cash

    Explanation: The theory of constraints accounting system accumulates costs and revenues into three areas; throughput, inventory, and operating expenses.
    (this multiple choice question has been scrambled)
  18. Using Drum Buffer Rope - How would you schedule an operation before a bottleneck work center?

    A. Schedule the operations at the same rate as the bottleneck
    B. Schedule at full capacity
    C. Schedule large batches
    D. Schedule the operations as early as possible
    A. Schedule the operations at the same rate as the bottleneck

    Explanation: Using Drum Buffer Rope, this would be the Drum of the process. Make sure there is a constant "drum" of input coming into the bottleneck. If schedule at full capacity then the bottleneck will have a large amount of inventory sitting right before the work center.
    (this multiple choice question has been scrambled)
  19. Customers demand all of the following EXCEPT?

    A. Global Product
    B. Product and Volume Flexibility
    C. Reduced Lead Time
    D. Improved Quality
    A. Global Product

    Explanation: Customers demand
    1. Lower Prices
    2. Improved quality
    3. Reduced Lead Time
    4. Improved pre-sale and after -sale service
    5. Product and volume flexibility
    (this multiple choice question has been scrambled)
  20. When a company implements an ERP system, what module is usually implemented FIRST?

    A. Financial Module
    B. Manufacturing Module
    C. Planning Module
    D. Quality Module
    A. Financial Module

    Explanation: A company implementing ERP usually implement the financial module first. Usually a site has other means to monitor and control the floor. When the financials are stable, they can start on implementing the other modules
    (this multiple choice question has been scrambled)
  21. An integrated planning, execution, and control structure starts with the:

    A.Resource Requirements Planning
    B. Strategic Plan
    C. Master Production Schedule
    D. Production Plan
    B. Strategic Plan
    (this multiple choice question has been scrambled)
  22. Explanation: An integrated planning, execution, and control structure starts with the strategic Plan
  23. In a usual case, what is the fastest way to increase capacity to meet a short term capacity constraint?

    A. Utilize Overtime
    B. Subcontract the work
    C. Purchase additional equipment
    D. Hire additional workers
    A. Utilize Overtime

    Explanation: The fastest way to increase capacity to meet a short term capacity restraint is to use overtime for existing workers.  All other methods require training or installation time in order to work.
    (this multiple choice question has been scrambled)
  24. What manufacturing environment utilizes general purpose workstations?

    A. Intermittent (Batch) manufacturing
    B. Line/ Repetitive manufacturing
    C. Project Manufacturing
    D. Flow Manufacturing
    A. Intermittent (Batch) manufacturing

    Explanation: In intermittent manufacturing workstations must be capable of producing many different parts.  Because of this, It is necessary to use general-purpose workstations and machinery that can perform a variety of tasks.
    (this multiple choice question has been scrambled)
  25. In a make to order environment MPS is planned at what level?

    A. Raw material
    B. end product
    C. Component level
    D. sub-assembly level
    A. Raw material

    Explanation: In a make to order environment, Master Production Schedule is planned at the raw materials level.
    (this multiple choice question has been scrambled)
  26. Which of the following is NOT a known demand?

    A. Forecast
    B. Customer Orders
    C. Replenishment Order
    D. Interplant stock transfer order
    A. Forecast
    (this multiple choice question has been scrambled)
  27. Explanation: Known demands include customer orders, replenishment orders, and interplant orders.  Forecasts are a part of forecast demands and are calculated instead of known.
  28. The basic elements of a company are included EXCEPT?

    A. Distribution
    B. Supply
    C. Inventory
    D. Production
    C. Inventory

    Explanation: According to Arnold in the Introduction to Materials Management, the three basic elements of a company is supply, production, and distribution.  Inventory is not a basic element of a company. Tip- Don't forget the word EXCEPT
    (this multiple choice question has been scrambled)
  29. A company wants to store a SKU consisting of 30,000 cartons on a pallet each containing 7 cartons?  If the pallets are stored 3 high, how many palate positions are needed?

    A. 20
    B. 1428
    C. 4286
    D. 1429
    D. 1429

    Explanation: Number of pallets required = 30,000/7= 4285.714 Number of pallet positions = 4285.714/3=1428.571 Since you can not have a partial palate position it is rounded up to 1429
    (this multiple choice question has been scrambled)
  30. Which of the following is NOT a part of the Market Research process?

    A. Define data needs
    B. Collect and analyze the data
    C. Implement recommended changes
    D. Identify problem and objective
    C. Implement recommended changes

    Explanation: The market research process does not include implementing recommendations Market research includes:
    1.  Identify problem and objective
    2.  Develop the research plan
    3.  Define the data needs
    4.  Identify the data sources
    5.  Determine the data collection method
    6.  Collect and analyze the data
    7.  Preparation and presentation of Research report
    (this multiple choice question has been scrambled)
  31. What type of stock is obtained to meet expected demand?

    A. Safety Stock
    B. Buffer Stock
    C. Cycle Stock
    D. Pipeline Stock
    C. Cycle Stock

    Explanation: Cycle stock is obtained to meet expected demand.  In finished goods it is to meet expected sales, in the raw material it is to support production.
    (this multiple choice question has been scrambled)
  32. Cycle StockBuffer StockSafety StockPipeline StockShow AnswerCorrect!Explanation: Cycle stock is obtained to meet expected demand.  In finished goods it is to meet expected sales, in the raw material it is to support production.Contact us about this questionQuestion ID: 6581Category: Transformation of Demand into SupplyABC company uses a panel of experts to make a prediction of the forecast.  After each forecast is made, the results are sent to the experts and allow them to change their responses. This review and change cycle can happen several times.  What type of forecasting technique is ABC company following?

    A. Management estimation
    B. Delphi Method
    C. Trend projection
    D. Panel consensus
    B. Delphi Method

    Explanation: The delphi forecasting method uses a panel of experts to make a prediction of the forecast.  After each forecast is made, the results are sent to the experts and allow them to change their responses. This review and change cycle can happen several times.  What type of forecasting technique is ABC company following?
    (this multiple choice question has been scrambled)
  33. The process to examine a part to establish if it meets the required quality is called?

    A. Inspection
    B. Quality Assurance
    C. SPC
    D. Control Chart
    A. Inspection

    Explanation: Inspection is the process of examining a part to establish if it meets the required standard.  It is commonly used to check purchased items when they are received, or manufactured items at various stages during the manufacturing process.
    (this multiple choice question has been scrambled)
  34. Which of the following is used to manage queues?
    I.   Rough Cut Capacity Planning
    II.  Material Requirements Planning
    III. Input/ output control
    IV. Drum Buffer Rope

    A. I, II, III Only
    B. II, III, IV Only
    C. I, II, III, & IV
    D. III & IV Only
    D. III & IV Only

    Explanation: Input/ output control manages queues at work centers within production activity control.  Drum buffer rope is a method to manage the queues at bottlenecks
    (this multiple choice question has been scrambled)
  35. Which of the following would likely NOT  Increase customer satisfaction?

    A. Achieve perfect Quality
    B. Quality
    C. Achieve 100% work cell utilization
    D. Price
    C. Achieve 100% work cell utilization

    Explanation: The following would increase user satisfaction
    1.  Price or cost
    2.  Quality
    3.  Delivery Speed
    4.  Delivery reliability
    5.  Customer Service
    6.  Flexibility
    7.  Image Achieving 100% work cell utilization may be over producing materials causing inventory.  The customer would not benefit from utilizing a work center 100% or not.
    (this multiple choice question has been scrambled)
  36. You are working in a Kanban system on the shop floor, once you complete your work you should?

    A. Request management to start next job
    B. Start the next job early to get a little ahead of the game
    C. Wait for the kanban signal to start the next job
    D. ignore the kanban signal and continue on work
    C. Wait for the kanban signal to start the next job

    Explanation: In a Kanban system a rule is No production or movement unless there is an authorization in the form of an unattached Kanban card.  The operator should wait until the next kanban signal to start working again.  Sometimes this does not seem intuitive because if resources you are paying have the time, they should work at 100% utilization, however if we allow that, then inventory builds up when it is not needed which is at a greater cost than a resource waiting until the next signal.
    (this multiple choice question has been scrambled)
  37. Tucson is 100 miles from Phoenix. The product cost for an item is $15 per cwt., and the transportation cost per mile per cwt. Is $.5.  What is the laid down cost per cwt?

    A. $50
    B. $65
    C. $35
    D. $1,500.50
    B. $65

    Explanation: Laid Down Cost = Product cost + Transportation cost per mile + Distance LDC= $15+$100*0.5 LDC = $65
    (this multiple choice question has been scrambled)
  38. What type of inventory would either go to a warehouse or fulfill customer demand?

    A. MRO Inventory
    B. Finished goods inventory
    C. Work in process inventory
    D. Raw Material Inventory
    B. Finished goods inventory

    Explanation: Finished Goods inventory would go to a warehouse or fulfill customer demand.
    (this multiple choice question has been scrambled)
  39. Given the following annual costs, calculate the average cost of placing one order Production Control Salaries =$75,000 Final Out Inspector Salaries = $65,000 Operating supplies for production control department = $15,000 Cost of setting up work centers for an order = $100 Orders placed per year = 100

    A.  $1,000
    B.  $1
    C.  $250
    D. $1,650
    A.  $1,000

    Explanation: Ordering Costs include Production control costs, setup and teardown costs, lost capacity costs, and purchase order costs. Average cost = fixed costs/ number of orders + variable costs (75000+15000)/100+100 = $1,000 cost per order
    (this multiple choice question has been scrambled)
  40. The primary purpose of cycle counting is to?

    A. Update control charts
    B. Identify inventory discrepancies
    C. Update the inventory tracking system with the appropriate information
    D. Determine root cause of any inventory discrepancies and eliminate the root cause
    D. Determine root cause of any inventory discrepancies and eliminate the root cause

    Explanation: Primary reason to do cycle counting is not only to find inventory discrepancies, but to find the root cause and eliminate the issue
    (this multiple choice question has been scrambled)
  41. A 99% service level calculates to a 2.33 Safety Factor (Number of Standard Deviations) with a MAD of 15, a lead time of 4 weeks and forecast sales of 250 per week, what is the safety stock required?

    A. 69.9
    B. 174.75
    C. 34,950
    D. 87.3
    D. 87.3

    Explanation: SS= MAD*1.25*SF*square root of (L/FP) MAD = Mean Absolute Deviation SF = Safety Factor L = Lead Time FP = Forecast Period MAD = Mean Absolute Deviation =15*1.25*2.33*Sq Root of (4/1) Equals 87.3
    (this multiple choice question has been scrambled)
  42. A wholesaler is the same thing as a?

    A. Retailer
    B. Supplier
    C. Manufacturer
    D. distributor
    D. distributor

    Explanation: A wholesaler is defined as a distributor.  A distributor is a business that does not manufacture its own products, but purchases and resells these products.
    (this multiple choice question has been scrambled)
  43. Poka-Yoke is a Japanese term that means?

    A. Continuous Improvement
    B. Lean Manufacturing
    C. Error Proofing
    D. Flow Manufacturing
    C. Error Proofing

    Explanation: A poka-yoke is any mechanism in a lean manufacturing process that helps an equipment operator avoid (yokeru) mistakes (poka). Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur.
    (this multiple choice question has been scrambled)
  44. What brings all departments and teams into a common system to encourage cross functional integration when making decisions?

    A. ERP System
    B. Flow system
    C. Kanban System
    D. JIT System
    A. ERP System

    Explanation: ERP provides a common system for a company to work cross functionally as a team with common goals.
    (this multiple choice question has been scrambled)
  45. What is MOST likely to be dependent demand?

    A. A Sub- Assembly at a factory
    B. Service Part
    C. Demand signals given from a customer
    D. A new TV you buy at the store
    A. A Sub- Assembly at a factory

    Explanation: Dependent Demand is dependent on independent demand.  A sub assembly will be dependent on the demand for the higher level assembly.   A TV, service for a part, or demand signal from a customer are all forms of independent demand
    (this multiple choice question has been scrambled)
  46. What is a method for measuring capacity?

    A. Standard Time
    B. Production Activity Control
    C. Product Mix
    D. Master Production Schedule
    A. Standard Time

    Explanation: Measuring capacity can be done by units of output or standard time.  Standard time is usually used in a service industry like an auto mechanic that measures the standard time to complete a repair.
    (this multiple choice question has been scrambled)
  47. A small group that is tasked with continuously improving a process or throughput is called?

    A. Six sigma group
    B. Management
    C. a quality circle
    D. Kanban card
    C. a quality circle
    (this multiple choice question has been scrambled)
  48. Explanation: Continuous improvement of the process and throughput using small groups for continuous change are called quality circles
  49. Revenue minus what equals Gross Profit?

    A. Direct Material
    B. Cost of Goods Sold
    C. Overhead
    D. Direct Labor
    B. Cost of Goods Sold
    (this multiple choice question has been scrambled)
  50. Explanation: Revenue minus cost of goods sold equals gross profit
  51. A supplier has demand from a customer of 1000 materials and was not able to deliver 50 materials during that month.  What is the supplier's Service Level to the customer for that month?

    A. 90%
    B.  5%
    C. 95%
    D. 95.20%
    C. 95%
    (this multiple choice question has been scrambled)
  52. Explanation: SL=((1-Demand Met/Total Demand))*100 SL=(1-50/1000)*100 SL=95%
  53. A company ships a particular product 1000 miles to their market at a cost of $7 a mile.  They normally ship 500 materials at a time, what is the line haul cost per unit?

    A. $14
    B. $1,500
    C. $71,428
    D. $7,000
    A. $14

    Explanation: Total line haul cost per unit is Miles*cost per mile/materials being transported =1000*7/500 $14
    (this multiple choice question has been scrambled)
  54. Which of the following is a step for receiving a good from a direct point of use certified supplier?

    A. Receiving Inspection
    B. Time Tracking
    C. Move receipt to stock
    D. None of the given steps are followed
    D. None of the given steps are followed

    Explanation: Certified suppliers that deliver directly to the floor do not follow any of the receiving procedure.  Their goods are usually counted by back flushing the goods.
    (this multiple choice question has been scrambled)
  55. Which of the following is NOT an objective of RCCP?

    A. Gives early warning of bottlenecks at critical work centers and how big a problem they are
    B.Determine best routing for material
    C. Projects future utilization of critical work centers
    D. Feasibility check of the MPS
    B.Determine best routing for material

    Explanation: RCCP objectives are 1.  It provides a feasibility check of the MPS 2.  Early warning of bottlenecks at critical work centers 3.  Projects future utilization of critical work centers 4.  Provides means to manage work in process
    (this multiple choice question has been scrambled)
  56. This item calls for a specified amount of some part number to be removed from some inventory location?

    A. Purchase Order
    B. Packing List
    C. Picking List
    D. Item Master
    C. Picking List

    Explanation: A picking list calls for a specified amount of some part number to be removed from some inventory location, to be delivered to a particular department or location,
    (this multiple choice question has been scrambled)
  57. What is a firm planned order used for?

    A. To firm planned inventory for a period of time
    B. To freeze an order in time and quantity
    C. To convert a planned order to a production order
    D. To reserve materials for a customer that has not given a sales order yet
    B. To freeze an order in time and quantity

    Explanation: A firmed planned order is used to freeze an order in quantity and time
    (this multiple choice question has been scrambled)
  58. What is the projected available balance after week 5 based off the following information?

    Materials on hand=200
    week                1        2        3        4         5
    forecast         1000  1000  1000  1000    1000
    mps recipts    1500  1500  1500  1500  
      
    A. 2000
    B. 1200
    C. 200
    D. 1000
    B. 1200

    Explanation: The formula used for this problem would be Material on hand +(MPS-Forecast period 1)+(MPS-Forecast period 2)� final period = Projected available balance 200+500+500+500+500-1000 = 1200 PAB at the end of period 5
    (this multiple choice question has been scrambled)
  59. In a traditional capacity management process, RCCP takes place after which of the following processes?

    A. after material requirements process
    B. the production planning process
    C. after the capacity requirements process
    D. the master production schedule process
    D. the master production schedule process

    Explanation: The direct input for Rough cut capacity planning is master production schedule.  The purpose of RCCP is to check the feasibility of the MPS and review any bottlenecks at key work centers/ vendors.
    (this multiple choice question has been scrambled)
  60. Which of the following items is NOT an input to Material Requirements Planning (MRP)?

    A. Purchase Orders
    B. Bill of Materials
    C. Inventory Records
    D. Master Production Schedule
    A. Purchase Orders

    Explanation: MRP has the following inputs
    1.  MPS
    2.  Bill of Materials
    3.  Inventory Records
    Purchase Orders would be an OUTPUT of MRP
    (this multiple choice question has been scrambled)
  61. Increasing delivery speed increases what for the manufacturer?

    A. In transit inventory
    B. Cash
    C. Overhead
    D. liabilities
    B. Cash

    Explanation: Increasing delivery speed means that the time between receiving the customer order and receiving their cash is shortened so cash flow would go up with delivery speed
    (this multiple choice question has been scrambled)
  62. What do the S's stand for in the 5S methodology?

    A. Sort, Simplify, Scrub, Standardize, Sustain
    B. Sort, sequence, schedule, safety, sustain
    C. Service, Safety, Scrap, Stock, Sustain
    D. Sort, Service, Standardize, Stock, Safety
    A. Sort, Simplify, Scrub, Standardize, Sustain

    Explanation: The five S's stand for Sort, Simplify, Scrub, Standardize, Sustain
    (this multiple choice question has been scrambled)
  63. An integrated planning, execution, and control structure starts with the?

    A. Master Production Schedule
    B. Production Plan
    C. Resource Requirements Planning
    D. Strategic Plan
    D. Strategic Plan

    Explanation: An integrated planning, execution, and control structure starts with the strategic Plan.
    (this multiple choice question has been scrambled)
  64. Impact of theory of constraints include all of the following EXCEPT

    A. WIP is reduced to a minimum
    B. Manufacturing is much more flexible to meet customer requirements
    C. Customer promises can be made more accurately
    D. Additional WIP inventory
    D. Additional WIP inventory

    Explanation: The 4 impacts of theory of constraints include
    1.  WIP reduced to a minimum
    2.  Customer promises can be made more accurately
    3.  Percentage of on time deliveries increases
    4.  Manufacturing is much more able to be flexible to meet customer requirements
    (this multiple choice question has been scrambled)
  65. At ABC company they create bicycles.  The annual demand is 5,200 units and is ordered in quantities of 520 items.  Mean Absolute Deviation of demand during lead time is 10 units.  Calculate the number of orders per year.

    A. 100 times per year
    B. 52 times per year
    C. 365 times per year
    D. 10 times per year
    D. 10 times per year

    Explanation: Number of orders per year = annual demand/ order quantity 5,200/520 = 10 times over year
    (this multiple choice question has been scrambled)

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