Free Certified in Planning and Inventory Management (CPIM 8.0) Exam CPIM-8.0 Exam Practice Test

For a company that uses first in, first out (FIFO) inventory accounting, the actual use in production of a recently arrived shipment of more expensive components rather than lower-cost components previously received will have which of the following results?

• Higher cost of goods sold (COGS)
• Lower COGS
• No change to COGS
• A violation of FIFO rules

A company confirms a customer order based on available capacity and inventory, even though the current production plan does not cover the entire order quantity. This situation is an example of what type of order fulfillment policy?

• Assemble-to-order (ATO)
• Capable-to-promise (CTP)
• Available-to-promise (ATP)
• Configure-to-order (CTO)

Which of the following statements correctly describes the relationship between the strategic plan and the business plan?

• These are two names for the same plan.
• The strategic plan constrains the business plan.
• The two plans are developed independently.
• The two plans are the output of a single process.

A company that uses concurrent engineering is likely to experience which of the following outcomes in the first period of a product's life cycle?

• Fewer product design changes
• An increase in obsolete inventory
• More accurate forecasting
• Conflicts between purchasing and engineering

Which of the following product design approaches are likely to reduce time to market for a global supply chain?

• Concurrent engineering
• Design for manufacture
• Design for logistics
• Quality function deployment (QFD)

Which of the following benefits typically will be realized when switching from a functional to a cellular layout?

• Equipment utilization will be higher.
• Quality inspections will be reduced.
• Capital expenditures will be reduced.
• Products will have faster throughput.

An example of an assignable cause of variation in process performance is:

• power fluctuation during machine operation.
• machine vibration during operation.
• incorrect setup of a machine by the operator.
• changes in temperature in the machine shop.

Under which of the following conditions is excess capacity most likely a good substitute for safety stock?

• The cost of excess capacity is less than the cost of an additional unit of safety stock in the same period.
• The cost to maintain one unit in inventory for a year is less than the direct labor cost.
• The service level with safety stock is more than the service level with excess capacity.
• Lead time for the product is longer than customers are willing to wait.

Which of the following measurements indicates there may be bias In the forecast model?

• Mean absolute deviation (MAD)
• Standard deviation
• Tracking signal
• Variance

Which of the following attributes describes a company with a global strategy?

• It uses the same basic competitive style worldwide and focuses efforts on building global brands.
• It customizes the basic competitive style to fit markets but focuses efforts on building global brands.
• It coordinates major strategic decisions worldwide but gives country managers wide strategy- making latitude.
• It operates plants in many host countries and uses decentralized distribution.