Certified in Production and Inventory Management - Master Planning of Resources v6.0 (CPIM-MPR)

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Total 111 questions

The forecast tracking signal is the ratio of the:

  • A. forecast to the MAD.
  • B. cumulative error to the MAD.
  • C. cumulative error to the forecast.
  • D. standard deviation to the MAD.


Answer : B

From a management perspective, the choice of transportation mode and routing primarily will affect the:

  • A. forecasted demand.
  • B. safety stock level.
  • C. manufacturing system.
  • D. planning horizon.


Answer : B

A firm uses the level production planning approach to produce a product family to stock.
Senior management has requested that the finished-goods inventory for the product family be reduced by 18% over the sales and operations planning horizon. Which of the following statements best describes the relationship between total demand and total production required for the product family over the planning horizon?

  • A. Total production required and demand will be equal.
  • B. Total production required will be less than total demand.
  • C. Total production required will be greater than total demand.
  • D. There is not sufficient data to determine the relationship.


Answer : B

If actual production for an item is less than the master production schedule due to material shortages, the first step in resolving the problem should be to:

  • A. reschedule the past due orders.
  • B. move in the time fence.
  • C. revise the rough-cut capacity plan.
  • D. overstate the production plan.


Answer : A

Which of the following statements about both econometric models and market research is true?

  • A. They are examples of intrinsic forecasting techniques.
  • B. They are useful in forecasting at the stockkeeping unit level.
  • C. They are useful in aggregate planning.
  • D. They can be used in place of adaptive smoothing.


Answer : C

In an assemble-to-order environment, which of the following factors is most significant in determining which items should be master scheduled?

  • A. Length of the master schedule horizon
  • B. Number of levels in the bill of material
  • C. Number of product options
  • D. Size of the forecast error


Answer : C

In an assemble-to-order environment, which of the following indicators is most appropriate for measuring the effectiveness of the master scheduling process?

  • A. Customer order fill rate
  • B. Number of stockouts
  • C. Capacity utilization
  • D. Aggregate inventory


Answer : A

The question below is based on the following production environment information:


In which facility would product unit costs most likely be reduced through a setup reduction program?

  • A. Facility A
  • B. Facility B
  • C. Facility C
  • D. Facility D


Answer : C

Jupiter Company produces 3,000 cars per month. It offers five different models with over
1,000 different model/option/color packages. Jupiter has established a collaborative relationship and electronic link with its supplier of door trim. Suppliers are given 5 days' notice of requirements and are expected to deliver directly to the final assembly area in the actual sequence in which each specific car is to be assembled.
Jupiter needs which of the following pieces of information from its supplier of door trim?

  • A. Production plan
  • B. Sales plan
  • C. Availability of resources
  • D. Bills of material


Answer : C

The question below is based on the following information:


The mean absolute deviation for the above forecast is:

  • A. -1.
  • B. 1.
  • C. 3.
  • D. 5.


Answer : C

Which of the following criteria is used to determine safety stock in a distribution center?

  • A. Economic order quantity
  • B. Seasonal index value
  • C. Alpha factor level
  • D. Probability of stocking out


Answer : D

Distribution requirements planning would most directly interface with:

  • A. capacity requirements planning.
  • B. master planning.
  • C. material requirements planning.
  • D. warehouse facility planning.


Answer : B

Which of the following activities would enhance a customer relationship management program?

  • A. Using an exponential smoothing forecast
  • B. Collecting point-of-sale data
  • C. Implementing an enterprise resources planning system
  • D. Moving from a make-to-order strategy to a make-to-stock strategy


Answer : B

Which of the following statements is true about items that appear on a final assembly schedule?

  • A. They do not appear on a shipment schedule.
  • B. They are stated in terms of end items or customer orders.
  • C. They are released without regard for component availability.
  • D. They are used as input to the production plan.


Answer : B

The most effective way to cope with uncertainty of demand and to improve customer service is to reduce:

  • A. lead times.
  • B. backlogs.
  • C. safety stock.
  • D. product options.


Answer : A

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Total 111 questions