CPIM Basics of Supply Chain Management Questions + Answers

[answerhappygod]

Question 1 ( Topic 1 )
In the income statement, the cost of goods sold is related to the:
A. sales dollars.
B. total inventory dollars.
C. marketing expenses.
D. manufacturing expenses.


Answer : D

Question 2 ( Topic 1 )
Which practice focuses on root cause analysis?
A. Statistical process control
B. Five whys
C. Scatter diagram
D. Pareto chart


Answer : B

Question 3 ( Topic 1 )
Which plant type describes a product at one stage that can be transformed into several distinct products at the next stage (divergent points)?
A. A-Plant
B. I-Plant
C. T-Plant
D. V-Plant


Answer : D

Question 4 ( Topic 1 )
Which of the following manufacturing processes would be characterized by a narrow range of standard products, low direct labor costs, and a high level of technical support for manufacturing?
A. Jobbing
B. Intermittent
C. Flow
D. Project


Answer : C

Question 5 ( Topic 1 )
Which of the following production environment strategies requires unique design or significant customization?
A. Make-to-order
B. Assemble-to-order
C. Make-to-stock
D. Engineer-to-order


Answer : D


Question 6 ( Topic 1 )
Which of the following types of layouts is most efficient in a lean production environment?
A. Islands
B. Connected islands
C. Functional layout
D. Cells


Answer : D

Question 7 ( Topic 1 )
Gemba is a Japanese word meaning:
A. shop floor.
B. shop order.
C. shop packet.
D. shop traveler.


Answer : A

Question 8 ( Topic 1 )
In an assemble-to-order production environment, the master production schedule contains:
A. standard items.
B. finished items.
C. raw materials.
D. subassemblies.


Answer : D

Question 9 ( Topic 1 )
Which of the following statements characterizes an intermittent manufacturing environment?
A. Work center load is predictable.
B. Routings for all products are the same.
C. Work centers are organized by function.
D. Kanban is the most appropriate scheduling method.


Answer : C

Question 10 ( Topic 1 )
Which of the following concepts could a firm implement to reduce defects?
A. Hansei
B. Jidoka
C. Muri
D. Heijunka


Answer : B


Question 11 ( Topic 1 )
The heijunka philosophy can best be described as:
A. level production.
B. make-to-stock production.
C. a chase production strategy.
D. produce to stock production.


Answer : A

Question 12 ( Topic 1 )
Which of the following issues would be of greatest concern for a company choosing to reduce its finished goods inventory?
A. Long production changeover time
B. Customer service expectations
C. Product quality requirements
D. Product shelf life constraints


Answer : B

Question 13 ( Topic 1 )
The lean production concept works best in which of the following manufacturing environments?
A. Make-to-order
B. Intermittent
C. Project
D. Flow


Answer : D

Question 14 ( Topic 1 )
Which of the following factors is included in cost of goods sold?
A. Revenue
B. General and administrative expenses
C. Overhead
D. Standard cost


Answer : C

Question 15 ( Topic 1 )
A company's cost of goods sold would be found on which of the following financial documents?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Performance statement


Answer : B


Question 16 ( Topic 1 )
Which of the following manufacturing environments presents the greatest complexity in promising completion dates for customer orders?
A. Flow
B. Repetitive
C. Continuous
D. Intermittent


Answer : D

Question 17 ( Topic 1 )
Which of the following terms refers to the practice of stopping the production line when a defect occurs?
A. Haiku
B. Arigato
C. Poka-yoke
D. Jidoka


Answer : D

Question 18 ( Topic 1 )
Which of the following items is considered an external failure cost?
A. Warranty cost
B. Incoming inspection
C. Prevention cost
D. Appraisal cost


Answer : A

Question 19 ( Topic 1 )
The question below is based on the following cost information:



What is the carrying cost?
A. 14%
B. 16%
C. 20%
D. 25%


Answer : D

Question 20 ( Topic 1 )
Which of the following manufacturing systems involves the creation of one unit or a small number of units?
A. Flow manufacturing
B. Intermittent manufacturing
C. Project manufacturing
D. Continuous manufacturing


Answer : C


Question 21 ( Topic 1 )
The overall objective of an integrated supply chain can best be described as the achievement of:
A. decreased lead time.
B. increased supplier partnerships.
C. an efficient flow of materials and information.
D. an efficient flow of production.


Answer : C

Question 22 ( Topic 1 )
Which of the following types of manufacturing processes would tend to have the lowest work in process (WIP) inventory?
A. Project
B. Intermittent
C. Batch
D. Flow


Answer : D

Question 23 ( Topic 1 )
The primary purpose of enterprise resources planning is to:
A. focus on the manufacturing function within an organization.
B. integrate an approach to business management.
C. use external knowledge to seek an internal advantage.
D. provide data protection along the supply chain.


Answer : B

Question 24 ( Topic 1 )
Which of the following tools is considered to be one of the seven quality tools?
A. Gantt chart
B. Input/output chart
C. Control chart
D. Capacity chart


Answer : C

Question 25 ( Topic 1 )
Which of the following situations is characteristic of a make-to-stock environment?
A. Work in process (WIP) represents the largest cost of inventory.
B. The impact of technology on the production process will be large.
C. The master schedule is stated at the finished product level.
D. Customer involvement is typically very high.


Answer : C


Question 26 ( Topic 1 )
Which of the following characteristics is most distinctive of lean manufacturing?
A. Teamwork
B. Continuous improvement
C. Qualitative measurements
D. Bottom-line results


Answer : B

Question 27 ( Topic 1 )
Having bolts and tools at the point of use on the automobile assembly line eliminates the waste of :
A. waiting.
B. overproduction.
C. making defects.
D. stocks.


Answer : A

Question 28 ( Topic 1 )
Reducing set up time will affect item lead time and throughput in which of the following ways?
A. Lead time will increase, throughput will decrease
B. Lead time will increase, throughput will increase
C. Lead time will decrease, throughput will increase
D. Lead time will decrease, throughput will decrease


Answer : C

Question 29 ( Topic 1 )
Which of the following techniques typically eliminates common errors?
A. Practical kaizen training
B. Kaizen
C. Poka-yoke
D. Kanban


Answer : C

Question 30 ( Topic 1 )
A firm offers products configured from a large number of stocked options. Which of the following production environments is the firm most likely to use?
A. Engineer-to-order
B. Make-to-order
C. Assemble-to-order
D. Make-to-stock


Answer : C