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APICS Certified in Planning and Inventory Management (CPIM 8.0) Sample Questions:

1. Management should support investments in new process technologies that:

A) provide long-term competitive advantage with acceptable financial risk.
B) have been recommended by technical experts and equipment suppliers.
C) provide significant cost-reduction opportunities for the company's current products.
D) require minimal changes in existing systems, procedures, and skills.

2. If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will:

A) increase in direct (linear) proportion.
B) increase at an increasing rate.
C) increase at a decreasing rate.
D) remain the same.

3. Exhibit:

A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

A) 100% service levels for B and C
B) Customer B has higher service level
C) Customer B and C have same service level
D) Customer C has higher service level

4. 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?

A) 50
B) 1.250
C) 3.750
D) 150

5. Which of the following conditions is most likely to result in planned production that is greater than the total demand over the sales and operations planning (S&OP) horizon for a product family that is made to stock?

A) Planned ending inventory for the product family is less than the beginning inventory.
B) An increase in the customer service level is planned for the product family.
C) New models are being added to the product family.
D) There is a long-term upward trend in demand for the product family.

Solutions: