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KNOWLEDGE ASSESSMENT

The following 10 questions are based on enterprise operations and resource management concepts. This test is for self-assessment only although we have received comments that it helped APICS CPIM candidates to prepare for their exams.

Just go ahead and test yourself, and see your results immediately!

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--- Questions are renewed weekly ---

1) If the safety stock is 50 and order quantity is 100 units, what is average inventory?
a) 50
b) 75
c) 100
d) 150


2) Which one of the following in an output from an MRP run?
a) Exception report
b) Scheduled receipts
c) Capacity plan
d) Master Production Schedule


3) What is the primary objective of Cycle Counting?
a) Timely updating of inventory records
b) Matching the inventory balances to the system
c) Timely detection and elimination of causes of errors
d) Eliminating physical inventory


4) When an MRP report is generated, where is the first place one should look for review?
a) Inventory levels
b) Planned order receipts
c) Gross requirements
d) Exception report


5) What is generally the highest cost element in physical distribution?
a) Quality cost
b) Item cost
c) Transportation cost
d) Total inventory cost


6) Who is the customer for the production department in a make to stock company?
a) Private label customers
b) Marketing and sales
c) Quality department
d) All of the above


7) A bill of material should be structured so that?
a) is an aid in planning
b) reflects how the product is built
c) satisfy other departments' use
d) all of the above is true


8) Effectivity dates?
a) allows correct planning of phase in phase out
b) is the most effective date for product launch
c) desired date of the product to start at a work centre
d) is the impact date for MRP to be processed


9) Planning horizon should be?
a) 1 to 2 years long
b) at least as long as the longest cumulative lead time
c) conveniently short to facilitate easy planning
d) used for raw materials only


10) Calculate MAD from the following data:

a) 14
b) 15
c) 3
d) cannot be calculated from the data above