NO.1 Economic order quantity (EOQ) is best applied when the:
A. product is make-to-order.
B. product shelf life is short.
C. production process is continuous.
D. consumption rate is uniform.
Answer: D
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NO.2 Which of the following statements best describes an example of advance ship notice?
A. An electronic data interchange communication indicating that an order has left the port of loading
B. A person who handles international shipping documentation and transportation requirements
C. A fee for material held at port longer than the standard unloading time
D. A listing of the items included in an overseas shipment
Answer: A
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NO.3 What document or record is used to inform others of the receipt of purchased goods?
A. Advance shipping notice
B. Invoice
C. Receiving report
D. Packing slip
Answer: C
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NO.4 Which of the following techniques is best for monitoring loads and capacities?
A. Exponential smoothing
B. Discrete lot sizing
C. Input/output control
D. Rough-cut capacity planning
Answer: C
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NO.5 What is the long-term effect of reducing the number of distribution centers between a
manufacturer and its customers?
A. Total stock quantity increases.
B. Transport costs from factory to distribution centers only decrease.
C. Transport costs from distribution centers to customers only decrease.
D. Transport costs from factory to distribution centers and from distribution centers to customers
decrease.
Answer: B
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NO.6 A manufacturer's market is highly dependent upon customers selecting standard options at the
time of placing an order. Which of the following manufacturing strategies is best suited to compete in
this market?
A. Engineer-to-order
B. Make-to-order
C. Assemble-to-order
D. Make-to-stock
Answer: C
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NO.7 As a company moves from domestic to global distribution, it becomes increasingly critical to
control which of the following distribution costs?
A. Warehousing
B. Material handling
C. Protective packaging
D. Transportation
Answer: D
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NO.8 Which of the following plans is translated into synchronized functional plans through the sales
and operations planning process?
A. Strategic
B. Marketing
C. Business
D. Financial
Answer: C
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Exam Name: CPIM - Basics of Supply Chain Management
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