Practice Test Geeks(CPIM) Certified in Planning and Inventory Management Practice Test
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Supply Planning and Management Flashcards

7 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which planning horizon characteristic best distinguishes a master production schedule (MPS) from a long-range production plan?

    Answer: MPS is stated in specific end items; long-range uses product families

    The MPS is expressed in specific end items over a shorter horizon, while long-range plans use product families or aggregate units.

  2. A company notices its planned orders are frequently being expedited due to demand spikes. Which MRP parameter adjustment would best reduce this problem?

    Answer: Increase safety stock levels

    Increasing safety stock absorbs demand variability and reduces the need to expedite orders when unexpected spikes occur.

  3. In supply chain management, 'postponement' refers to:

    Answer: Deferring product differentiation to the latest possible point in the supply chain

    Postponement delays customization or differentiation activities until demand is more certain, reducing finished goods inventory risk.

  4. What is the primary purpose of a 'rough-cut capacity plan' (RCCP)?

    Answer: To verify that the MPS is achievable given key resource constraints

    RCCP checks that critical or bottleneck resources can support the MPS before detailed scheduling begins.

  5. Which of the following best describes 'available-to-promise' (ATP) functionality?

    Answer: The uncommitted portion of inventory and planned production that can be promised to customers

    ATP identifies how much inventory or planned supply is uncommitted and can be allocated to new customer orders.

  6. A supplier offers a quantity discount: $10/unit for 1-499 units and $8/unit for 500+ units. Annual demand is 1,000 units. Holding cost is 20% of unit price per year. Which order quantity minimizes total annual cost?

    Answer: 500 units to capture the discount

    When a quantity discount reduces unit cost enough to offset higher holding costs, ordering at the discount break point minimizes total cost.

  7. Which supply planning concept involves sharing real-time inventory and sales data between a retailer and supplier to jointly manage replenishment?

    Answer: Collaborative planning, forecasting, and replenishment (CPFR)

    CPFR is a structured collaboration process where trading partners jointly develop forecasts and replenishment plans using shared data.