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

1. One way to mitigate liability risk in the supply chain is to:

A) use less-than-truckload (LTL) shipments more frequently.
B) push inventory to supplier locations.
C) require traceability for components.
D) negotiate lower component cost.

2. Which of the following statements is an assumption on which the economic order quantity (EOQ) model is based?

A) Order preparation costs and inventory-carrying costs are constant and known.
B) Holding costs, as a percentage of the unit cost, are variable.
C) Customer demand is known but seasonal.
D) Items are purchased and/or produced continuously and not in batches.

3. In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:

A) reduced forecast variability.
B) fewer customer defections.
C) fewer customer order changes.
D) earlier Identification of shifts Incustomer preferences.

4. The horizon for forecasts that are input to the sales and operations planning (S&OP) process should be long enough that:

A) supply constraints can be resolved.
B) required resources can be properly planned.
C) cumulative forecast deviation approaches zero.
D) planned product launches can be incorporated.

5. The master schedule is an Important tool in the sales and operations planning (S&OP) process because it:

A) represents the forecast before changes are made in S&OP.
B) balances supply and demand at the sales volume level.
C) balances supply and demand at the product mix level.
D) represents the forecast with less detail.

Solutions: