Free Certified in Planning and Inventory Management (Part 2) Exam CPIM-Part-2 Exam Practice Test

An example of a cradle-to-cradle sustainability model would be:

• A a laundry service collects dirty baby clothes from families; cleans the clothes in large, efficient batches; and then sorts and delivers the clothes back to each family.
• a coffee shop collects paper waste in its restaurants, has a selected supplier collect the paper waste to be recycled, and then purchases paper products from that supplier.
• a company uses wood that has been gathered from multiple sources to construct items, such as beds and toys for babies and young children.
• a bank offers the lowest interest rates on loans to firms that are committed to using recycled materials and implementing zero-waste initiatives in their processes.

A company has deployed its own proprietary software for web hosting and order management. This software has been recognized as best-in-class. The proprietary software represents what defensive operational strategy used to sustain the company's business over time?

• Difficult to substitute
• B. Difficult to relocate
• Scarcity
• Difficult to copy

The primary consideration in maintenance, repair, and operating (MRO) supply systems typically is:

• order quantity.
• stockout costs.
• carrying costs.
• shelf life.

The results from responding to uncertainty in the supply chain by exaggerating lead times and increasing lot sizes is called:

• bullwhip effect.
• supply and demand.
• process train.
• forward integration.

A reduction in purchased lot sizes will reduce which of the following items?

• Inventory levels
• Frequency of orders
• Reorder points (ROPs)
• Setup times

Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?

• Decreased fixed assets
• Decreased retained earnings
• Increased accounts receivable
• Increased intangible assets

A firm produces a moderate variety of products to stock in a single plant. The plant is organized in a functional layout with some work cells. Which of the following indicators most appropriately would be used to evaluate the effectiveness of the detailed capacity planning processes?

• Units of output per direct labor hour
• Change in level of work-in-process (WIP) inventory
• Percentage of master schedule attained
• Level of finished goods inventory

A company can easily change its workforce, but inventory carrying costs are high. Which of the following strategies would be most appropriate during times of highly fluctuating demand?

• Produce to backorders
• Produce at a constant level
• Produce to the sales forecast
• Produce to demand

Staging in a manual system corresponds to which of the following functions in a computer system?

• Order release
• Allocation
• Dispatching
• Bill-of-material explosion

The most appropriate production output reporting method for repetitive manufacturing is:

• operation-by-operation.
• count point.
• job tickets.
• backflush.