CPIM - Basics of Supply Chain Management Practice Test
CPIM-BSP test Format | Course Contents | Course Outline | test Syllabus | test Objectives
This course focuses on management and improvement of supply chain processes and performance. It will be valuable for students who would like to pursue a career in consulting or take a position in operations, marketing or finance functions in a manufacturing or distribution firm. We explore important supply chain metrics, primary tradeoffs in making supply chain decisions, and basic tools for effective and efficient supply chain management, production planning and inventory control, order fulfillment and supply chain coordination. We will also investigate courses such as global supply chain design, logistics, and outsourcing, several other exact supply chain innovations.
The class format includes lectures, case discussions, guest speakers, and simulation games. The content covers both quantitative and qualitative materials. The cases will feature high-tech companies as well as firms in more traditional industries such as apparel and manufacturing.
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CPIM - Basics of Supply Chain Management
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QUESTION: 144
The ABC approach to inventory management is used primarily to:
A. minimize transportation and material handling costs.
B. classify inventory according to the total amounts of inventory required.
C. optimize the amount of inventory for all classifications of inventory.
D. establish the degree of inventory control required.
Answer: D
QUESTION: 145
Which of the following documents or records typically is required by accounting,
receiving, purchasing, andthe supplier?
A. Bill of lading
B. Purchase requisition
C. Receiving report
D. Purchase order
Answer: D
QUESTION: 146
Economic order quantity (EOQ) is best applied when the:
A. product is make-to-order.
B. product shelf life is short.
C. production process is continuous.
D. consumption rate is uniform.
Answer: D
QUESTION: 147
Consolidating shipments and reducing the frequency of pickups help to reduce which of
the following types of costs?
A. Warehousing and inspection
B. Import duties and processing
C. Total transportation
D. Capital
Answer: C
QUESTION: 148
As a company moves from domestic to global distribution, it becomes increasingly
critical to control which of the following distribution costs?
A. Warehousing
B. Material handling
C. Protective packaging
D. Transportation
Answer: D
QUESTION: 149
The question below is based on the following information:
What is the average annual transit inventory in units?
A. 55
B. 110
C. 548
D. 658
Answer: C
QUESTION: 150
Consignment stock is typically owned by:
A. a supplier until consumed.
B. the company who will consume the stock.
C. a joint trust set up for this purpose.
D. the carrier who transports the stock.
Answer: A
QUESTION: 151
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
QUESTION: 152
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
QUESTION: 153
Which of the following outcomes is a benefit of using a purchase requisition?
A. Purchase pricing being correct
B. Improved accuracy of information
C. Assurance that delivery dates are met
D. Terms and conditions being followed
Answer: B
QUESTION: 154
Which of the following statements about a distribution requirements planning system is
true?
A. It is used only for service parts.
B. Priority is given to open orders.
C. Material requirements planning logic is used.
D. Gross requirements come from exploding the bill of material.
Answer: C
QUESTION: 155
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
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