APICS CPIM - Certified in Planning and Inventory Management Exam

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Total 258 questions

How would a master production schedule (MPS) be used in an assemble-to-order (ATO) manufacturing environment?

  • A. The MPS is used to plan subassemblies and components; end items are only scheduled when a customer order is received.
  • B. Subassemblies are scheduled in the MPS when the customer order is received, and production can start.
  • C. Typically, the MPS is not used in companies using an ATO manufacturing strategy.
  • D. Often in an ATO environment, the MPS is created once a year and only revised if a product is discontinued.


Answer : A

Price negotiation is most appropriate when purchasing which of the following product categories?

  • A. Commodities
  • B. Standard products
  • C. Items of small value
  • D. Made-to-order (MTO) items


Answer : D

A part is sold as a service part, and it is also used as a component in another part. Which of the following statements about the planning for this part is true?

  • A. Its low-level code is zero.
  • B. The material requirements for the part will be understated.
  • C. The service part demand can be included in the gross requirements.
  • D. It shouldn’t have any safety stock.


Answer : C

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?

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


Answer : D

What is the main negative effect of changing the due dates of open orders?

  • A. The schedule information becomes inaccurate.
  • B. The customer service level decreases.
  • C. It leads to “nervousness” in the schedule.
  • D. The schedule does not support demand.


Answer : C

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Total 258 questions