CPIM Software Trivia Quiz

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| By Lynn Bradley

Lynn Bradley

Community Contributor

Quizzes Created: 319 | Total Attempts: 517,627

Questions: 10 | Attempts: 156 | Updated: Mar 21, 2023

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Do you want to be certified in production and inventory management, there are lists of software that can help you prepare for your CPIM Certification. Supply chain management is an integral part of any company, and we've put together a quiz to help test and practice your knowledge in production and inventory management.

Questions and Answers

1.

What is the disadvantage of the push system?
- A.
  
  It makes stocking decisions centrally
- B.
  
  Inventory is sent where it is most needed
- C.
  
  The coordination is more expensive than the pull system
- D.
  
  Inventory is not sent where needed most
Correct Answer
C. The coordination is more expensive than the pull system

Explanation
The disadvantage of the push system is that the coordination required to determine inventory needs and distribute it accordingly is more expensive compared to the pull system. In a push system, inventory is pushed or sent to various locations based on forecasts or predetermined stocking decisions. This centralized decision-making and distribution process can be costly in terms of time, resources, and potential inefficiencies. On the other hand, in a pull system, inventory is only replenished when it is needed, reducing coordination costs and minimizing the risk of overstocking or understocking.

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2.

_____ best describes the basics for establishing standard cost for the next year?
- A.
  
  Capacity based cost
- B.
  
  Purchase cost
- C.
  
  Rate based cost
- D.
  
  Budgeted cost
Correct Answer
D. Budgeted cost

Explanation
Budgeted cost best describes the basics for establishing standard cost for the next year. Budgeted cost refers to the estimated cost that a company expects to incur in the upcoming year. It takes into account various factors such as production volume, material costs, labor costs, and other overhead expenses. By setting a budgeted cost, a company can establish a standard cost that serves as a benchmark for evaluating actual costs and performance. This helps in planning and controlling costs effectively.

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3.

Which of the following processes identifies when the quality of the process is beginning to trend away from specification?
- A.
  
  Statistical process control
- B.
  
  Regulated checking process
- C.
  
  Periodic checking control
- D.
  
  Statistical checking process
Correct Answer
A. Statistical process control

Explanation
Statistical process control is a method used to monitor and control a process to ensure it operates within specified limits. It involves collecting and analyzing data to identify any trends or patterns that may indicate the process is deviating from its desired specifications. By using statistical techniques, such as control charts, it allows for early detection of any process variations, enabling timely corrective actions to be taken. Therefore, statistical process control is the most appropriate process for identifying when the quality of a process is beginning to trend away from specification.

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4.

Demand calculated from present demand is known as
- A.
  
  Independent demand
- B.
  
  For seen demand
- C.
  
  Forecasted demand
- D.
  
  Dependent demand
Correct Answer
D. Dependent demand

Explanation
Dependent demand refers to the demand for a component or raw material that is dependent on the demand for the final product. It is calculated based on the demand for the finished product and the bill of materials or the production process. In contrast, independent demand is the demand for the finished product itself, which is not influenced by the demand for other components. Therefore, the correct answer is dependent demand.

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5.

How do you calculate the month moving average
- A.
  
  Taking the forecasted demand for the last three months and dividing by two
- B.
  
  Taking the forecasted demand for the last three months and dividing by three
- C.
  
  Taking the actual demand for the last three months and dividing by three
- D.
  
  Taking the actual demand for the last two months and dividing by two
Correct Answer
C. Taking the actual demand for the last three months and dividing by three

Explanation
To calculate the month moving average, you need to take the actual demand for the last three months and divide it by three. This method gives you an average value that represents the demand over a three-month period. Dividing by three ensures that the average is evenly distributed across the three months, providing a more accurate representation of the overall demand trend.

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6.

What is throughput
- A.
  
  The total capacity a factory can produced
- B.
  
  The speed of a work center
- C.
  
  The total volume of production passing through a facility
- D.
  
  The number of workers in a company
Correct Answer
C. The total volume of production passing through a facility

Explanation
Throughput refers to the total volume of production that passes through a facility. It measures the efficiency and productivity of a system by calculating the amount of output produced in a given period. This includes all the goods or services that are successfully completed and delivered to the customers. Throughput is an important metric in manufacturing and operations management as it helps in identifying bottlenecks, optimizing processes, and maximizing the overall productivity of the facility.

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7.

_____ must be eliminated in order to increase the throughput
- A.
  
  Speed
- B.
  
  Capacity
- C.
  
  Volume
- D.
  
  Bottlenecks
Correct Answer
D. Bottlenecks

Explanation
Bottlenecks refer to any constraints or obstacles in a system that limit its overall performance or throughput. These can be in the form of inefficient processes, resource limitations, or any other factors that slow down the flow of work. By eliminating bottlenecks, the system can operate more smoothly and efficiently, allowing for increased throughput.

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8.

_____ is a primary reason for reduced overall manufacturing lead time
- A.
  
  Machine maintenance
- B.
  
  Labour contribution
- C.
  
  Operation overlapping
- D.
  
  Cost of purchased equipment
Correct Answer
C. Operation overlapping

Explanation
Operation overlapping is a primary reason for reduced overall manufacturing lead time. When different operations in the manufacturing process are overlapping, it means that multiple tasks are being performed simultaneously instead of sequentially. This helps in reducing the time required to complete the entire manufacturing process. By overlapping operations, the overall lead time is decreased as different tasks can be completed concurrently, leading to increased efficiency and productivity in the manufacturing process.

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9.

In which of the following are fixed locations usually used
- A.
  
  Small warehouse, low throughput
- B.
  
  Big warehouse, low throughput
- C.
  
  Small warehouse, high throughput
- D.
  
  Big warehouse, high throughput
Correct Answer
A. Small warehouse, low throughput

Explanation
Fixed locations are usually used in small warehouses with low throughput. In such warehouses, there is limited space and a lower volume of goods being processed. Therefore, fixed locations are beneficial as they allow for efficient organization and easy retrieval of items. In contrast, big warehouses with high throughput often require more flexible storage arrangements, such as dynamic or random locations, to accommodate the larger inventory and faster movement of goods.

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10.

Calculate the cost of producing one School bag given the following annual costs: Department salaries............$300,000 Number of staff.................................7 Number of orders in a year......10,000 Operating Expenses...............$30,000
- A.
  
  $33
- B.
  
  $50
- C.
  
  $15
- D.
  
  $100
Correct Answer
D. $100

Explanation
The cost of producing one school bag is $100. This can be calculated by dividing the total annual costs by the number of orders in a year. The total annual costs include department salaries, operating expenses, and any other expenses related to production. In this case, the total annual costs are $330,000 ($300,000 for department salaries + $30,000 for operating expenses). Since there are 10,000 orders in a year, the cost of producing one school bag is $100 ($330,000 divided by 10,000 orders).

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