CPIM-BSP : CPIM - Basics of Supply Chain Management Exam

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CPIM-BSP
CPIM - Basics of Supply Chain Management
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QUESTION: 144
The ABC approach to inventory management is used primarily to:
A. minimize transportation and material handling costs.
B. classify inventory according to the total amounts of inventory required.
C. optimize the amount of inventory for all classifications of inventory.
D. establish the degree of inventory control required.
Answer: D
QUESTION: 145
Which of the following documents or records typically is required by accounting,
receiving, purchasing, andthe supplier?
A. Bill of lading
B. Purchase requisition
C. Receiving report
D. Purchase order
Answer: D
QUESTION: 146
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
QUESTION: 147
Consolidating shipments and reducing the frequency of pickups help to reduce which of
the following types of costs?
A. Warehousing and inspection
B. Import duties and processing
C. Total transportation
D. Capital
Answer: C
QUESTION: 148
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
QUESTION: 149
The question below is based on the following information:
What is the average annual transit inventory in units?
A. 55
B. 110
C. 548
D. 658
Answer: C
QUESTION: 150
Consignment stock is typically owned by:
A. a supplier until consumed.
B. the company who will consume the stock.
C. a joint trust set up for this purpose.
D. the carrier who transports the stock.
Answer: A
QUESTION: 151
Which of the following factors is a primary consideration when contracting with a
supplier?
A. Inventory levels
B. Order cost
C. Quantity discounts
D. Product quality
Answer: D
QUESTION: 152
Which of the following differences must be taken into consideration when dealing with
a global distribution system?
A. Culture
B. Cost
C. Carriers
D. Computer systems
Answer: A
QUESTION: 153
Which of the following outcomes is a benefit of using a purchase requisition?
A. Purchase pricing being correct
B. Improved accuracy of information
C. Assurance that delivery dates are met
D. Terms and conditions being followed
Answer: B
QUESTION: 154
Which of the following statements about a distribution requirements planning system is
true?
A. It is used only for service parts.
B. Priority is given to open orders.
C. Material requirements planning logic is used.
D. Gross requirements come from exploding the bill of material.
Answer: C
QUESTION: 155
What is the order point when demand is 120 units per week, the lead time is 2 weeks,
and safety stock is 60 units?
A. 180
B. 240
C. 300
D. 360
Answer: C

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