CPIM(Certified In Production & Inventory Management)

MPR Sample Test.

1. Which of the following would NOT be a key operating objective ?

A. Inventory dollars. B. Shipment dollars.
C. Factory location selection. D. Work force stabilization.

2. All of the following are about forecasting. Which of the following is LEAST related among others ?
Ⅰ. Causal factor.
Ⅱ. External indicator.
Ⅲ. Historical data.
Ⅳ. Leading indicator.

A. Ⅰ. B. Ⅱ. C. Ⅲ. D. Ⅳ.

3. Which of the following must be essentially considered when scheduling final assembly in ATO
manufacturing environment ?
A. Customer shipping date. B. Master production schedule.
C. Material requirement plan. D. Tracking signal.

4. Your are a company master scheduler and just have scheduled the master schedule, which calculate
ATP in demand time fence as 85 units. If 100 units of a customer order in demand time fence is
demanding, which of the following action is the MOST appropriate as the master scheduler ?
A. Accept this customer order and expedite production.
B. Firstly accept 85 units of the customer order, request the decision making to the senior
management for the remaining orders.
C. Accept this customer order and replan the mater production schedule.
D. Firstly accept 85 units of the customer order, promise the remaining order after demand
time fence.

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 MPR Sample Test.

5. All of the following are quantitative forecasting methods EXCEPT ?

A. Delphi. B. Seasonal index. C. Cyclic index. D. Additive trend.

6. Which of the following will be NOT involved in the bill of resource ?

A. Materials. B. Energy. C. Labor. D. SKU.

7. Which of the following principles are TRUE for establishing effective MPS ?
Ⅰ. Planning horizon must be longer than the longest cumulative lead time of end items.
Ⅱ. Planning time fence must be calculated as much as purchase lead time.
Ⅲ. Demand time fence must be established as one week irrespectively of manufacturing environments.
Ⅳ. Manufacturing constraints must be considered.

A. Ⅰ, Ⅱ B. Ⅱ, Ⅲ C. Ⅲ, Ⅳ D. Ⅰ, Ⅳ

8. Production plan can be evaluated by resource plan using :

A. Safety stock. B. Safety lead time. C. The bill of resource. D. Safety capacity.

9. When updating MPS, the planner will, first of all,

A. Investigate exception message. B. Change lot size.
C. Change lead time. D. Release orders.

10. Which of the following is MOST appropriate technique for new products ?
A. Econometric method. B. Dephi method. C. Exponential smoothing. D. Multiple regression.

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 CPIM(Certified In Production & Inventory Management)

11. Inputs of rough-cut capacity plan are

Ⅰ. Critical workcenter.
Ⅱ. Load profile.
Ⅲ. MPS.
Ⅳ. Bill of resource.

A. Ⅰ, Ⅱ, Ⅲ B. Ⅰ, Ⅲ, Ⅳ C. Ⅱ, Ⅲ, Ⅳ D. Ⅰ, Ⅱ, Ⅲ, Ⅳ

12. Which of the following are used in distribution inventory planning ?

Ⅰ. Distribution requirement planning.
Ⅱ. Push system.
Ⅲ. Time phased order point.
Ⅳ. Periodic review system.

A. Ⅰ B. Ⅰ, Ⅱ C. Ⅰ, Ⅱ, Ⅲ D. Ⅰ, Ⅱ, Ⅲ, Ⅳ

13. Establishing the production plan for period using level strategy, based on the following information.
․ Starting inventory : 1000 units.
․ Forecasted demand : 21,000 units.
․ Projected ending inventory : 0 units.
․ No. of periods : 4

A. 4,500 B. 5,000 C. 5,500 D. 6,000

14. Which of the following is MOST appropriate forecasting technique when a company planning sales
promotion for their new product line at the current year ?
A. Historical analogy. B. Regression analysis. C. Level Strategy. D. Seasonal index.

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 MPR Sample Test.

15. Based on the following information, calculate the production rate per period if a company want to
develop the level production plan ?
․ Beginning inventory : 200 units.
․ Ending inventory : 100 units.
․ Forecasted demand.
Period 1 2 3 4 5
Forecasts 700 500 400 300 500

A. 460 units B. 480 units. C. 500 units. D. 520 units.

16. All of the following must be considered in the process of demand management EXCEPT :
A. Validating engineering specification. B. Tracking demand pattern for each product group.
C. Analyzing complementary product. D. Investigating voice of the customer.

17. If make-to-stock company only concentrate on the increase of inventory for improving customer
service, we can expect that :
A. The company will lose sales force due to increased inventories.
B. The company will continually increase sales volumes due to increased inventories.
C. The company will experience sales volume improvement gradually slow downed.
D. The company will experience sales decline at first, but immediately they will learn by experience that
sales volume are continuously increased.

18. Based on the below MPS table, what is the available-to-promise in period 2 ?
On-hand : 40 units.
Safety stock : 0 DTF : 1 week
Lot size : 40 units. . PTF : 5 week
1 2 3 4 5 6
Forecast 50 30 20 50 50 50
Customer Order 35 10 0 0 0 0
PAB 40
ATP
MPS 40 40

A. 10 B. 20 C. 30 D. 40

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 CPIM(Certified In Production & Inventory Management)

19. Which of the following elements affect on the change of the bill of resources ?
Ⅰ. Product mix.
Ⅱ. Production technology.
Ⅲ. Product volume.
Ⅳ. Product costing.

A. Ⅰ, Ⅱ B. Ⅱ, Ⅲ C. Ⅲ, Ⅳ D. Ⅰ, Ⅳ

20. The planning horizon for MPS should be longer than :

A. The longest cumulative lead time. B. Manufacturing lead time.
C. 6～12 month. D. Time bucket.

21. Which of the following is the MOST appropriate technique for trade-off analysis between forecasts
accuracy and costs ?
A. Cost variance analysis. B. Tracking signal.
C. Cost/benefit analysis. D. Focus forecasting.

22. A company have just established EDI system. They expect :

Ⅰ. Improvement of planning accuracy.
Ⅱ. Rapid communication.
Ⅲ. Reduction of purchasing clerks.
Ⅳ. Increase of security for internal information.

A. Ⅰ B. Ⅰ, Ⅱ C. Ⅰ, Ⅱ, Ⅲ D. Ⅰ, Ⅱ, Ⅲ, Ⅳ

23. Which of the following should occur for a sales and operations process working properly ?
A. Time will be spent on the problems which occurred in the previous month.
B. Middle managers will have solved the issues before the meeting.
C. Senior managers will provide reasons for the near misses.
D. Customer service will improve.

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 MPR Sample Test.

24. The production plan needs to be expressed in meaningful units that everyone understands. It also
needs to be expressed in a manageable number of units. The best number of product groups or families
would be :
A. Less than 5. B. Five to fifteen.
C. Fifteen to twenty five. D. Twenty five to fifty.

25. In order to properly manage the business, a key responsibility of the management team is to control
performance of the business to the plan. In order to accomplish this task, it is important that the
production plan is widely understood in the company. To accomplish this, senior managers must:
A. Not change the plan. B. Send emails to everyone regarding the plan.
C. Punish those departments that miss the plan. D. Communicate clear expectations of the plan.

26. When overconsuming within demand time fence, PAB will be :

A. Increased. B. Increased as much as overconsuming.
C. Not changed. D. Decreased as much as overconsuming.

27. Which of the following factors will affect on realistic MPS EXCEPT ?
A. Utilization of modular bills. B. Calculation of the rated capacity per each end item.
C. Accuracy of ATP. D. Accuracy of bill of resource.

28. Based on the following information, what is the rated capacity for month ?
․ Production hours = 8 hrs per shift.
․ No. of shifts = 2.
․ Working days = 20 days per month.
․ Utilization = 75 %.
․ Efficiency = 75%.

A. 320 B. 180 C. 200 D. 160

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 CPIM(Certified In Production & Inventory Management)

29. The evaluation for forecasting system performance should include EXCEPT
A. Tracking signal. B. Average.
C. Outliers and demand filters. D. MAD.

30. All of the following are external demand factors affecting on demand EXCEPT :
Ⅰ. Competitor's action.
Ⅱ. Company pricing strategy.
Ⅲ. Company lot size strategy.
Ⅳ. Company sales promotion.

A. Ⅰ, Ⅱ, Ⅲ B. Ⅱ, Ⅲ, Ⅳ C. Ⅰ, Ⅲ, Ⅳ D. All

31. How much planning bills are required in assemble-to-order manufacturing environment ?
․ No of product model = 5.
․ No of options for product model = 5.

A. 5 B. 10 C. 25 D. 120

32. If a customer order is so much delayed, a company should

A. Expedite the customer order for reducing due-date.
B. Reschedule MPS.
C. Notice the customer for product delay and reconciliate the delivery schedule with the customer.
D. Execute trade-off analysis with every orders for re-calculating order priorities.

33. Output of capacity requirement plan is :

A. Product load profile. B. Action notice.
C. Workcenter file. D. Dispatching list.

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 MPR Sample Test.

34. Who is responsible for evaluating the master schedule ?

A. Shop manager. B. Middle manager. C. Top manager. D. Supervisor.

35. In make-to-stock environment, which of the following is LEAST effective way to stabilize MPS while
good customer service level ?
A. Consuming forecasts. B. Safety Stock. C. Time fence. D. Firm planned order.

36. Product options is NOT calculated in which of the following ?

A. Supper bills. B. Modular bills. C. Planning bills. D. Phantom bills.

37. Which of the following practice is NOT appropriate for the decision of S&OP ?
A. S&OP should be approved throughout the agreement of core functions such as marketing,
engineering, finance and production.
B. S&OP should be established under the agreement of core functions.
C. S&OP should be evaluated under the basis on business plan.
D. S&OP should be regarding to product volume, not to product mix.

38. In S&OP process, aggregate inventory management decision should focus on EXCEPT :
A. Maximize customer service. B. Minimize inventory investment.
C. Minimize JIT's waste. D. Maximize production efficiency.

39. When informing a specific customer of delivery delay time interval, which of the following information
should be used ?
A. PAB B. ATP C. Safety Stock D. MPS.

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 CPIM(Certified In Production & Inventory Management)

40. Forecasts accuracy directly affects on :

A. Total production cost. B. Inventory levels.
C. Total sales volume. D. Improvement of productivity.

41. Which of the following is TRUE about planning bills ?

A. It facilitates the planning process. B. It is related to manufacturing bill of materials.
C. It is related to engineering bill of materials. D. It is very effective in final assemble.

42. In developing a sales and operation planning process, measurements must be created to be published
and reviewed at each meeting. Which of the following measures would NOT be a likely measure for sales
and operations planning ?
A. Sales versus plan. B. Shipment dollars versus plan.
C. Actual production versus production plan. D. Work center capacity utilized versus plan.

43. Projected available balance (PAB) :

Ⅰ. Is always positive.
Ⅱ. Is possible to be negative.
Ⅲ. Represents the projected inventory.
Ⅳ. Can include allocation.

A. Ⅰ, Ⅲ B. Ⅱ, Ⅲ C. Ⅲ, Ⅳ D. Ⅰ, Ⅳ

44. Which of the following is MOST cost effective when accepting the rush orders of a specific customer
in demand time fence ?
A. Using safety stock. B. Reallocating ATP.
C. Establishing planning bills. D. Rescheduling MPS.

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 MPR Sample Test.

45. All of the following are planning bill EXCEPT

A. Super bill. B. Multilevel bill. C. Pseudo bill. D. Common parts bill.

46. A company which have capital intentive equipments for their product groups will want to develop :
A. Level production strategy. B. Chase production strategy.
C. Hybrid production strategy. D. Subcontract production strategy.

47. Characteristics of pull system are NOT :

A. Centralization. B. Decentralization. C. Demand rate. D. Point of use.

48. Infinite loading is

A. Level loading without available capacity.
B. Methods for evaluating MPS.
C. Able to investigate queue lengths for a specific workcenter.
D. Capable of representing overloading workcenter.

49. Which of the following is LEAST true about push system ?

A. Central production control. B. Kanban. C. MRP Ⅱ system. D. Job shop.

50. Increases of distribution center and warehouse may result in

A. Reduction of total inventory level. B. Decrease of total transportation cost.
C. Decease of fixed cost. D. Decease of total operation cost.

51. Which of the following data should be used to express the sales plan ?
A. Order receipt dates. B. Customer requested dates.
C. Order promise dates. D. Available-to-promise dates.

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 CPIM(Certified In Production & Inventory Management)

52. For each product family, the number of units that can possibly be produced each month should be
determined. This should be done by
A. Engineering study. B. Calculating the rated capacity.
C. Recent past sales history. D. Capacity requirements planning.

53. Before beginning a sales and operations planning process, it is BEST to

A. Prepare pilot data consisting of a few product families.
B. Be sure the forecast is at least 95% accurate.
C. Ensure all product SKU's are included.
D. Provide responsibilities to everyone involved.

54. Which of the following sources of demand should be considered in production planning ?
Ⅰ. Order backlog from customers.
Ⅱ. Scheduled receipts.
Ⅲ. Interplant transfer of parts.

A. I and II B. I and III C. II and III D. I, II, and III

55. Every company should have a set of functional plans synchronizing activities across functions that
specify production levels, capacity levels, staffing levels, funding levels, etc. to achieve the intermediate
goals and objectives of the organization. This plan would be called the
A. Business plan. B. Strategic plan. C. Tactical plan. D. Operational plan.

56. If the production plan shows that certain key resources will be over capacity, one option is to find
suppliers who will produce the products associated with the overloaded resource. This process of finding a
supplier to manufacture a product that was previously done internally is called
A. Capacity enhancement. B. Infinite loading. C. Decomposing. D. Outsourcing.

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 MPR Sample Test.

57. As used in forecasting, decomposition refers to

A. The disaggregation of data.
B. Time series data being separated into trend, seasonality, and cyclic data.
C. Forcing down of data in to the separate components, product family, SKU, etc.
D. A series of models which are tested by the history to determine the best fit forecast.

58. A distribution network structure is the

A. Planned channels of inventory disbursement from one or more sources to a field warehouses and,
ultimately, to the customer.
B. Planned route along which a product travels to the ultimate customer.
C. Organization including distribution planners which maintain the outflow of products to the customer.
D. Process of determining the need to replenish inventory at branch warehouses.

59. Which of the following statements is TRUE regarding the inclusion of dependent demand as part of
demand management ?
A. Include them in the production plan. B. Include them in the MPS.
C. Include them in the MRP system. D. Do not include them at all.

60. In which of the following environments would the capable-to-promise (CTP) functionality be LEAST
helpful ?
A. Make-to-stock. B. Make-to-order. C. Assemble-to-order. D. Engineer-to-order

61. A strong customer/supplier partnership develops over a period of time and is built on
A. Strong negotiating tactics. B. Blanket orders.
C. Solid contractual relationships. D. Mutual trust and respect.

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 CPIM(Certified In Production & Inventory Management)

62. The ability to take a customer order and provide a promised delivery date based on the existing
capacity and materials is called
A. Capable-to-promise. B. Available-to-promise. C. Delivery-to-promise. D. Order-to-promise.

63. The production planning process is meant to be a communication tool. In order to fulfill this objective,
the production plan should be stated in
A. Hours of capacity and output. B. Units of capacity and output.
C. Dollars of capacity and output. D. Commonly understood terms.

64. The ability to order promise is different between organizations; whether they are make-to-stock,
make-to-order, or assemble-to-order. In an assemble-to-order company, the ability to promise an order to a
customer, and deliver it as promised, is based on the
A. Available finished goods inventory.
B. Availability of major subassemblies and components.
C. Available capacity for manufacturing and engineering.
D. Available supplier capacity going forward.

65. Which of the following is NOT a key element of demand management ?

A. Predict demand. B. Communicate demand.
C. Readjust demand. D. Influence demand.

66. Many companies capture sales data as the demand data. Which of the following BEST describes the
problem with this technique ?
A. Sales in one month may not ship until the next month.
B. Sales may include sporadic demand.
C. Sales may include free goods/samples.
D. Sales may understate actual demand for the products.

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 MPR Sample Test.

67. Which of the following is the primary role for demand management ?
A. Providing a tool for aggregation and disaggregation of demand.
B. Linking the production plan to MRP.
C. Providing input to the master schedule.
D. Synchronizing of market activities and the production plan.

68. Which of the following BEST describes the benefit of DRP to the MPS ?
A. Establishes a method for consigning inventory at customers.
B. Allows visibility into the distribution system for scheduling purposes.
C. Improves forecast accuracy thereby improving the scheduling.
D. Reduces the demand for capacity plan allowing more flexibility in scheduling.

69. The forecasting system that uses the one forecasting model that would have performed BEST in the
recent past to generate the next forecast is
A. Pyramid forecasting. B. Focus forecasting.
C. Exponential smoothing. D. Double exponential smoothing.

70. In a make-order environment, it is important to control the customers order after it has been entered
into the system. Frequently, the order is taken and a great deal of engineering must occur before the
final product is shipped to the customer. As a result, certain product features are known at order entry
time, while others must be engineered. To help reduce engineering lead times, which of the following
techniques can be used ?
A. Resource bills of materials. B. Modular bills of materials.
C. Pseudo bills of materials. D. Specialized planning bills of material.

71. This generally requires MPS stability and predictability. The master scheduler can achieve this by
using which of the following techniques ?
A. Safety stock. B. Time fences. C. Kanban. D. Safety lead time.

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 CPIM(Certified In Production & Inventory Management)

72. All of the following are priority sequencing rules EXCEPT

A. Earliest operation due date. B. Least slack rule.
C. Latest part due date. D. Shortest operation time.

73. Planned orders from the warehouse translate to which of the following in the factory ?
A. Planned orders in the MRP system. B. Scheduled receipts.
C. Gross requirements in the MPS. D. Inventory in the MPS.

74. In using a DRP system, aggregate forecasts are often used. These aggregate forecasts are then
broken down into detailed forecasts by the distribution center. When this happens, which of the following
will MOST likely occur ?
A. The forecast will become more accurate. B. Relative errors will increase.
C. Inventory levels at the centers will increase. D. Inventory accuracy will decline.

75. Which of the following BEST describes the term 'Logistics' in the non-military sense ?
A. The movement of finished goods to the final customer.
B. Obtaining and distributing products and materials.
C. Demand management and physical distribution.
D. None of the above.

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 MPR Sample Test.

Solution :

1 2 3 4 5 6 7 8 9 10
C C A B A D D B A B
11 12 13 14 15 16 17 18 19 20
B D B A A A C C A A
21 22 23 24 25 26 27 28 29 30

C C B B D D C B B B
31 32 33 34 35 36 37 38 39 40
B C A B B D A C D B
41 42 43 44 45 46 47 48 49 50
A D B A B A A A B B
51 52 53 54 55 56 57 58 59 60
B C A B C D B A D A
61 62 63 64 65 66 67 68 69 70

D A D B C D D B A D

71 72 73 74 75

B C C B B

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