CPIM-MPR Online Practice Questions and Answers

An income statement of a company is as follows:

Profit has been increased by 60% to get the in profit by 600,000 by increasing revenue; sales would have to increase to 1.2 million. What will happen with CGS?

A. Decrease by 3%

B. Increase by 4%

C. Decrease by 4%

D. Will remain same

Inventories are part of planning process and provide buffer against:

A. Demand rates

B. Production rates

C. Differences in demand and production rates

D. None of these

Delivery lead time is the longest in case of:

A. Make-to-order

B. Make to-stock

C. Assemble-to-order

D. None of these

Which one of the following tools that cannot be used to evaluate feasibility of a strategy?

A. Cash flow analysis and forecasting

B. Break-Even analysis

C. Resource deployment analysis

D. None of these

1.

Wrong product or specification

2.

Wrong amount (too little or too much)

3.

Wrong shipping date (too early or too late)

These are common errors in that occur all the time and require constant attention.

A. Customer Expectations

B. Customer orders

C. MPS

D. MRP

Master production schedule, inventory records and bills of material are three major inputs to

A. Material Requirements planning (MRP) System

B. Production activity Control

C. Manufacturing Planning and Control (MPC) Function

D. Capacity Requirements planning (CRP)

By using following product tree, how many Ks are needed to make 200Xs and 150 Ys?

A. 1900 Ks

B. 900 Ks

C. 2100 Ks

D. 800 Ks

Something that has value and is expected to benefit the future operation of the business is known as:

A. Revenues

B. Business Plan

C. Asset

D. Sales

As applied to inventories, it is usually found that the relationship between the percentage of items and the percentage of annual dollar usage follows a pattern in which three groups can be defined:

Group A About 50 % of the items account for about 5 % of the dollar usage Group B About 20 % of the items account for about 80 % of the dollar usage Group C About 30 % of the items account for about 15 % of the dollar usage

A. True

B. False

Which of the following is NOT the role that warehouses serve?

A. Transportation consolidation

B. Cubic space

C. Product mixing

D. Service