Practice Test Geeks(CPIM) Certified in Planning and Inventory Management Practice Test
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Sample 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. A company uses a periodic review inventory system. Which parameter defines how often the inventory level is checked?

    Answer: Review interval

    In a periodic review system, the review interval (also called cycle time) determines how frequently inventory is checked and replenishment orders are placed.

  2. Which of the following best describes a pull system in manufacturing?

    Answer: Production is triggered by actual downstream demand or consumption

    A pull system triggers production or material movement based on actual downstream demand, as seen in kanban systems, rather than a forecast-driven push.

  3. In the context of MRP, what is the term for the time required to perform a process step, excluding waiting time?

    Answer: Cycle time

    Cycle time is the time to complete one unit of work in a process step, whereas lead time encompasses all components including queue, move, and wait times.

  4. A Bill of Materials (BOM) that shows all components at the same level regardless of where they appear in the product structure is called a:

    Answer: Summarized parts list

    A summarized parts list (or summarized BOM) consolidates all components to a single level, showing total quantities needed regardless of their position in the product hierarchy.

  5. Which capacity planning technique uses historical ratios of labor or machine hours per unit of output to estimate future capacity needs?

    Answer: Rough-cut capacity planning

    Rough-cut capacity planning uses overall factors or bills of resources to quickly validate whether the master production schedule is feasible before detailed CRP.

  6. The process of allocating available capacity to production orders based on their priority is known as:

    Answer: Dispatching

    Dispatching is the function of selecting and sequencing available jobs to be run at a work center, assigning them to specific machines or workers.

  7. A company has a finished goods inventory turns ratio of 12. What is the average number of days of inventory on hand?

    Answer: 30 days

    Days of inventory = 365 / inventory turns = 365 / 12 ≈ 30.4 days, meaning the company holds approximately 30 days of inventory on average.