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.

Read the first 7 Supply Planning and Management flashcards as text

  1. Which technique is used to convert a family-level production plan into individual end-item schedules in the MPS?

    Answer: Planning bill of materials (planning BOM)

    A planning BOM (or super BOM) distributes aggregate family demand across individual end items using historical option percentages.

  2. A distribution network has warehouses in Chicago, Dallas, and Seattle. Which supply planning tool would best coordinate replenishment from the central plant to these locations?

    Answer: Distribution requirements planning (DRP)

    DRP is specifically designed to manage the replenishment of finished goods across a distribution network from central supply points.

  3. When calculating the economic order quantity (EOQ), which assumption is most critical and also least realistic in practice?

    Answer: Demand rate is known and constant

    EOQ assumes constant, deterministic demand, but real demand is variable and uncertain, making this the most limiting assumption in practice.

  4. A planner is using a 'min-max' inventory system. The minimum is 100 units and maximum is 400 units. Current on-hand is 80 units. What should the planner order?

    Answer: 320 units (max minus on-hand)

    In a min-max system, when inventory falls below the minimum, an order is placed to bring inventory up to the maximum (400 − 80 = 320 units).

  5. Which supply planning technique specifically addresses the problem of translating end-item demand into requirements for purchased and manufactured components?

    Answer: Material requirements planning (MRP)

    MRP uses the bill of materials and MPS to explode end-item demand into time-phased component requirements for purchasing and manufacturing.

  6. A company operating in a highly seasonal business uses a 'hybrid' aggregate production strategy. What does this strategy combine?

    Answer: Elements of both chase and level strategies to balance costs

    A hybrid strategy blends the workforce stability of a level strategy with some output variation of a chase strategy to minimize total production and inventory costs.

  7. Which of the following is a key benefit of implementing vendor-managed inventory (VMI) with strategic suppliers?

    Answer: Reduced buyer administrative burden and improved supplier visibility into consumption

    VMI transfers replenishment responsibility to the supplier who, with consumption visibility, can better optimize delivery frequency and quantities, reducing buyer workload.