CPIM-BSP Exam - CPIM - Basics of Supply Chain Management

NEW QUESTION 1

Typically the highest cost for warehousing is the cost related to:

• A. space.
• B. labor.
• C. equipment for materials handling.
• D. the information system.

Answer: A

NEW QUESTION 2

Which of the following differences must be taken into consideration when dealing with a global distribution system?

• A. Culture
• B. Cost
• C. Carriers
• D. Computer systems

Answer: A

NEW QUESTION 3

Which of the following factors is included in cost of goods sold?

• A. Revenue
• B. General and administrative expenses
• C. Overhead
• D. Standard cost

Answer: C

NEW QUESTION 4

An electronic board that provides visibility on the production floor is:

• A. andon.
• B. anova.
• C. ANSI.
• D. alpha factor.

Answer: A

NEW QUESTION 5

Which of the following processes is concerned with the transfer or delivery of goods or services?

• A. Distribution channel
• B. Supply chain
• C. Transaction channel
• D. Value chain

Answer: A

NEW QUESTION 6

What is the output of sales and operations planning?

• A. Production plan
• B. Master production schedule
• C. Sales plan
• D. Production order

Answer: A

NEW QUESTION 7

Companies typically make final purchasing decisions based on which of the following supplier characteristics?

• A. Reverse logistics
• B. Personal relationships
• C. Delivery reliability
• D. Market share

Answer: C

NEW QUESTION 8

Effective inventory management should lead to which of the following?

• A. Higher inventory turns
• B. Higher product quality
• C. Lower cost of capital
• D. Elimination of inventory cycle counting

Answer: A

NEW QUESTION 9

Which of the following terms represents a complete supply chain dedicated to the flow of products and materials for the purpose of returns, repair, remanufacture, or recycling?

• A. Responsible landfill
• B. Remanufacturing resource planning
• C. Reverse logistics
• D. Global distribution

Answer: C

NEW QUESTION 10

A firm offers products configured from a large number of stocked options. Which of the following production environments is the firm most likely to use?

• A. Engineer-to-order
• B. Make-to-order
• C. Assemble-to-order
• D. Make-to-stock

Answer: C

NEW QUESTION 11

Which of the following production environment strategies requires unique design or significant customization?

• A. Make-to-order
• B. Assemble-to-order
• C. Make-to-stock
• D. Engineer-to-order

Answer: D

NEW QUESTION 12

Which of the following forecast inputs is considered to be intrinsic data?

• A. Demographic
• B. Econometric
• C. Historical sales
• D. Market survey

Answer: C

NEW QUESTION 13

Which of the following characteristics is most distinctive of lean manufacturing?

• A. Teamwork
• B. Continuous improvement
• C. Qualitative measurements
• D. Bottom-line results

Answer: B

NEW QUESTION 14

The primary purpose of enterprise resources planning is to:

• A. focus on the manufacturing function within an organization.
• B. integrate an approach to business management.
• C. use external knowledge to seek an internal advantage.
• D. provide data protection along the supply chain.

Answer: B

NEW QUESTION 15

Which of the following statements describes the difference between capacity requirements planning and material requirements planning ?

• A. Material requirements planning ignores capacity constraints.
• B. Capacity requirements planning accounts for material.
• C. Material requirements planning is confined by capacity constraints.
• D. Capacity requirements planning only accounts for critical resources.

Answer: A

NEW QUESTION 16

Which of the following forecasting techniques eliminates the need to keep months of historical data?

• A. Exponential smoothing
• B. Seasonal index
• C. Delphi
• D. Trend

Answer: A

NEW QUESTION 17

Which of the following describes a competitive characteristic that a firm must exhibit to be considered as a supplier in a market?

• A. Marketing research
• B. Manufacturing automation
• C. Order qualifier
• D. Order winner

Answer: C

NEW QUESTION 18

Earliest job due date is an example of:

• A. dispatching.
• B. infinite scheduling.
• C. a chase strategy.
• D. available-to-promise.

Answer: A

NEW QUESTION 19

The portion of a firm's inventory and planned production that is not already committed is referred to as:

• A. planned order receipts.
• B. projected inventory balance.
• C. master production schedule due date.
• D. available-to-promise.

Answer: D

NEW QUESTION 20

Which of the following factors is a primary consideration when contracting with a supplier?

• A. Inventory levels
• B. Order cost
• C. Quantity discounts
• D. Product quality

Answer: D

NEW QUESTION 21

Which of the following statements characterizes an intermittent manufacturing environment?

• A. Work center load is predictable.
• B. Routings for all products are the same.
• C. Work centers are organized by function.
• D. Kanban is the most appropriate scheduling method.

Answer: C

NEW QUESTION 22

Knowing average daily consumption and on hand inventory, a company can calculate:

• A. storage cost.
• B. days of supply.
• C. annual usage rate.
• D. annual cost of goods sold.

Answer: B

NEW QUESTION 23

Which of the following measures should a company focus on to reduce variation in the product?

• A. Mode
• B. Mean
• C. Median
• D. Standard deviation

Answer: D

NEW QUESTION 24

What is the order point when demand is 120 units per week, the lead time is 2 weeks, and safety stock is 60 units?

• A. 180
• B. 240
• C. 300
• D. 360

Answer: C

NEW QUESTION 25

Which of the following circumstances will cause a decrease in a work center's utilization?

• A. Working overtime
• B. Working below standard
• C. Lack of materials
• D. Rework operations

Answer: C

NEW QUESTION 26
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