CPIM Certification Exam! MCQ Quiz

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  • 1/137 Questions

    Which of the following is generally a characteristic of a product focused layout?

    • Large queues @ workstations
    • Fixed Flow of work
    • Production to a work order
    • General purpose workstations
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About This Quiz

Have you ever heard of CPIM certification, and do you think you can make the grade with this quiz? CPIM is the acronym for Certified in Production and Inventory Management. This certification is a professional title offered by the Association for Operations Management to assist operations, inventory, and logistics professionals in the production industry to demonstrate capability and ongoing experience See moreand willingness to learn in the field. This quiz is top-notch. Give it a shot.

CPIM Certification Exam! MCQ Quiz - Quiz

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  • 2. 

    Which of the following is generally a function of the physical distribution system?

    • Production Activity control

    • Production Planning

    • Packaging

    • Bill of material

    Correct Answer
    A. Packaging
    Explanation
    Packaging is generally a function of the physical distribution system because it involves the process of designing and creating the containers or materials used to protect, store, and transport products. Packaging plays a crucial role in ensuring the safety and integrity of products during distribution, as well as providing information and branding. It also helps in facilitating efficient handling, storage, and transportation of goods, ultimately contributing to the smooth flow of products from the manufacturer to the end consumer.

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  • 3. 

    A forecast is typically more accurate for

    • Groups of items rather than for individual items

    • Daily rather than monthly periods of time

    • Physical Units rather than monetary units

    • Far out in the future rather than nearer time periods

    Correct Answer
    A. Groups of items rather than for individual items
    Explanation
    A forecast is typically more accurate for groups of items rather than for individual items because when forecasting for a group, the variations and uncertainties associated with individual items tend to cancel each other out. By considering the collective behavior of a group, the forecast can better capture the overall trend and patterns, resulting in a more accurate prediction. On the other hand, forecasting for individual items can be more challenging as they may exhibit unique characteristics and random fluctuations that are difficult to predict accurately.

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  • 4. 

    Which of the following is most likely to be a dependent demand item?

    • A Manufactured subassembly

    • An item in a grocery store

    • A service part

    • An office supply item

    Correct Answer
    A. A Manufactured subassembly
    Explanation
    A manufactured subassembly is most likely to be a dependent demand item because it is a component or part of a larger finished product. The demand for the subassembly is dependent on the demand for the final product it is used in. In other words, the quantity of subassemblies needed is determined by the production requirements of the final product. This is in contrast to independent demand items, such as items in a grocery store, service parts, or office supply items, which have demand that is not directly linked to the demand for other products.

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  • 5. 

    A lean production 5S System is designed to:

    • Recycle

    • Discover defects

    • Identify work method deviations

    • Create a visual workplace

    Correct Answer
    A. Create a visual workplace
    Explanation
    A lean production 5S System is designed to create a visual workplace by organizing and arranging items in a way that is easily visible and accessible to all employees. This helps to improve efficiency, reduce waste, and enhance communication within the workplace. By visually representing the workflow and processes, it becomes easier for employees to identify any deviations from the standard work methods and quickly address them. Additionally, a visual workplace promotes a clean and organized environment, which can contribute to improved productivity and employee morale.

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  • 6. 

    The setup time for an operation is two hours and the run time is 10 minutes per piece. The scheduled operation time for 100 units is

    • 130 minutes

    • 1000 minutes

    • 1100 minutes

    • 1120 minutes

    Correct Answer
    A. 1120 minutes
    Explanation
    The scheduled operation time for 100 units can be calculated by adding the setup time to the total run time for 100 units. The setup time is given as 2 hours, which is equal to 120 minutes. The run time per piece is 10 minutes, so for 100 units, the total run time would be 100 * 10 = 1000 minutes. Adding the setup time and the run time, we get 120 + 1000 = 1120 minutes. Therefore, the scheduled operation time for 100 units is 1120 minutes.

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  • 7. 

    Material requirements planning (MRP) schedules a planned order receipt when

    • A gross requirement exists

    • A net requirement exists

    • An exception is generated

    • Safety stock is zero

    Correct Answer
    A. A net requirement exists
    Explanation
    MRP schedules a planned order receipt when a net requirement exists. Net requirement is the difference between the gross requirement and the quantity already on hand or on order. It represents the actual quantity needed to fulfill the demand. When a net requirement exists, MRP calculates the timing and quantity of the planned order receipt to ensure that there is enough inventory available to meet the demand.

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  • 8. 

    A purpose of holding extra inventory is to

    • Allow production to select what to run

    • Minimize the bill of material levels

    • Reduce the number of purchased items

    • Buffer production from demand variation

    Correct Answer
    A. Buffer production from demand variation
    Explanation
    Holding extra inventory serves the purpose of buffering production from demand variation. By having additional inventory on hand, a company can ensure that it has enough stock to meet unexpected increases in demand. This helps to prevent stockouts and disruptions in the production process. Additionally, it allows the company to have a buffer in case of supply chain disruptions or delays. Overall, holding extra inventory helps to stabilize production and maintain customer satisfaction.

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  • 9. 

    Which of the following provide a buffer for seasonal demand?

    • Lot-size inventory

    • Fluctuation inventory

    • Anticipation inventory

    • Decoupling inventory

    Correct Answer
    A. Anticipation inventory
    Explanation
    Anticipation inventory refers to the stock that is accumulated in advance of expected seasonal demand. This type of inventory acts as a buffer to meet the increased demand during peak seasons or periods of high customer demand. By having anticipation inventory, businesses can ensure that they have enough stock on hand to meet customer needs without experiencing stockouts or delays in delivery. This helps to maintain customer satisfaction and prevent lost sales opportunities. Therefore, anticipation inventory is a suitable option for providing a buffer for seasonal demand.

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  • 10. 

    Owner's equity is 

    • Revenue less liabilities

    • Revenue less expenses

    • Assets less liabilities

    • Assets less expenses

    Correct Answer
    A. Assets less liabilities
    Explanation
    Owner's equity is calculated by subtracting liabilities from assets. This is because owner's equity represents the residual interest in the assets of the entity after deducting liabilities. In other words, it is the net worth of the owner or shareholders in the business. Therefore, the correct answer is "Assets less liabilities."

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  • 11. 

    Sales = 16 millCOGS= 10 millGenearl admin expenses= 4millAvg Inventory=2.5 millInv turnover ratio is:

    • 1.5

    • 1.6

    • 4.0

    • 6.4

    Correct Answer
    A. 4.0
    Explanation
    The inventory turnover ratio is calculated by dividing the cost of goods sold (COGS) by the average inventory. In this case, the COGS is given as 10 million and the average inventory is given as 2.5 million. Dividing 10 million by 2.5 million gives a ratio of 4.0. This means that the company sells and replaces its inventory 4 times during the given period.

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  • 12. 

    An item has a lead time of six weeks and an average demand of 150 units per week. The safety stock for the item is 300 units and the order quantity is 2,000 units. the order point for the item is.

    • 300 un

    • 900

    • 1,200

    • 2,000

    Correct Answer
    A. 1,200
    Explanation
    The order point is the inventory level at which a new order should be placed to replenish stock. It is calculated by multiplying the lead time by the average demand per week and adding the safety stock. In this case, the lead time is 6 weeks and the average demand is 150 units per week. So, the lead time demand is 6 weeks x 150 units/week = 900 units. Adding the safety stock of 300 units, the order point is 900 units + 300 units = 1,200 units.

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  • 13. 

    In a decentralized distribution system, the role of the central supply organization is to

    • Determine when to replenish stock at the distribution centers

    • Respond to demands from the distribution centers

    • Coordinate communications among distribution centers

    • Forecast demand at each distribution center.

    Correct Answer
    A. Respond to demands from the distribution centers
    Explanation
    In a decentralized distribution system, the central supply organization is responsible for responding to demands from the distribution centers. This means that when the distribution centers require additional stock or have specific needs, the central supply organization is the entity that addresses these demands. They play a crucial role in ensuring that the distribution centers have the necessary resources and supplies to meet customer demands effectively. This helps to maintain a smooth flow of goods throughout the distribution system and ensures that each center is adequately supported.

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  • 14. 

    The primary purpose of a cycle count program is to

    • Correct inventory errors

    • Result in fewer counts per year

    • Require less skilled counters

    • Identify causes of inventory errors

    Correct Answer
    A. Identify causes of inventory errors
    Explanation
    A cycle count program is designed to identify the causes of inventory errors. By regularly counting a subset of items in inventory, the program can help identify discrepancies between the physical count and the recorded count. This allows businesses to pinpoint the reasons behind inventory errors, such as theft, misplacement, or inaccurate record-keeping. By understanding the causes, businesses can implement corrective measures to improve inventory accuracy and minimize errors in the future.

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  • 15. 

    In the Toyota Production System, which of the following concepts was key to breaking down the silos that cripple an organization?--- is this on?!?

    • The cross functional structure mix

    • Cross-functional training

    • The control department concept

    • Kanban

    Correct Answer
    A. The control department concept
    Explanation
    The control department concept was key to breaking down the silos in the Toyota Production System. This concept involves establishing a centralized control department that oversees and coordinates the activities of different departments within the organization. By centralizing control and communication, this concept helps to eliminate the silo mentality and encourages collaboration and information sharing across departments. This allows for a more efficient and integrated workflow, leading to improved overall organizational performance.

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  • 16. 

    In the Toyota Production System (lean), which statement best describes the planning process?

    • A separate planning department comprised of forecasting and marketing experts continually assesses and reassesses marketing trends to respond effectively to new customers' needs

    • Significant data is collected and mined to determine trends and how to respond as a company to results of econometrics models

    • An extension of MBO, which focuses on objectives and process, long- and short-term plan-do-check-act cycles, consensus building and alignment, catch ball, and people focus.

    • ERP and supply chain software collects the data for analysis, the planning dept. analyzes the data, top management analyze the results and develop a plan, which is reviewed by key workers.

    Correct Answer
    A. An extension of MBO, which focuses on objectives and process, long- and short-term plan-do-check-act cycles, consensus building and alignment, catch ball, and people focus.
    Explanation
    What is MBO?

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  • 17. 

    Which of the following statements is correct?

    • The lot size affects the product mix cycle

    • The stock out ratio frequently depends on the lot size quantity

    • The lot size should always be equal to one

    • The EOQ is the best method to calculate lot size

    Correct Answer
    A. The lot size affects the product mix cycle
    Explanation
    The correct statement is that the lot size affects the product mix cycle. This means that the quantity of products produced in each lot affects the variety and combination of products available to customers. A larger lot size may allow for more variety in the product mix, while a smaller lot size may limit the available options. Therefore, the lot size plays a crucial role in determining the product mix cycle.

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  • 18. 

    A primary advantage of electronic data interchange (EDI) with suppliers is that it

    • Reduces paperwork

    • Bypasses the buyer

    • Employs the latest technology

    • Supports unlimited forms of communications

    Correct Answer
    A. Reduces paperwork
    Explanation
    Electronic data interchange (EDI) with suppliers reduces paperwork by eliminating the need for manual data entry and physical documents. Instead of exchanging paper-based documents like purchase orders and invoices, EDI allows for the electronic transfer of information between trading partners. This not only saves time and resources but also reduces the risk of errors and delays associated with manual processes. Additionally, EDI enables real-time communication and automation, improving efficiency and streamlining supply chain operations.

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  • 19. 

    In most cases, the fastest way to increase capacity to meet a short-term requirement is to

    • Hire addtl workers

    • Use overtime

    • Acquire more equipment

    • Subcontract work

    Correct Answer
    A. Use overtime
    Explanation
    Using overtime is the fastest way to increase capacity to meet a short-term requirement because it allows the company to utilize its existing workforce for longer hours without the need to hire and train additional workers or invest in acquiring more equipment. Overtime allows for increased productivity within a shorter time frame, ensuring that the short-term requirement is met without incurring significant costs or delays. Subcontracting work or acquiring more equipment may take more time and resources, making overtime the most efficient option in this scenario.

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  • 20. 

    The demand at a workstation in a lean system typically comes from

    • A pull signal

    • A dispatch list

    • The production plan

    • A control chart

    Correct Answer
    A. A pull signal
    Explanation
    In a lean system, the demand at a workstation typically comes from a pull signal. This means that the workstation only produces items when there is a demand for them from the next process or customer. The pull signal can be in the form of a kanban card or any other visual indicator that signals the need for more items to be produced. This approach helps to minimize waste and ensures that production is driven by actual demand rather than forecasts or arbitrary targets.

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  • 21. 

    Which of the following best describes a Kanban system?

    • A quality conrol system

    • Push production

    • Requires Operator flexibility

    • Visual Reorder point

    Correct Answer
    A. Visual Reorder point
    Explanation
    A Kanban system is a visual reorder point that helps manage inventory and production by using visual signals to indicate when and how much to replenish. It is a lean manufacturing technique that aims to reduce waste and improve efficiency by ensuring that materials and products are only produced and delivered when needed. This system allows for better inventory control and helps prevent overproduction or stockouts.

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  • 22. 

    The master production schedule (MPS) is

    • An anticipated build schedule

    • An input to the production plan

    • A statement of forecast demand

    • Driven by material requirements planning

    Correct Answer
    A. An anticipated build schedule
    Explanation
    The master production schedule (MPS) is an anticipated build schedule. This means that it is a plan that outlines the expected production quantities and timing for each finished product. It takes into account factors such as customer demand, available resources, and production capacity. The MPS serves as a guide for the production plan, which includes detailed information on how the products will be manufactured. It is not a statement of forecast demand or driven by material requirements planning, although these factors may be considered when creating the MPS.

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  • 23. 

    The balance sheet for a firm shows which of the following?

    • Profit or loss for the period

    • Sources and uses of funds

    • Long- and short-term debt

    • Cost of products sold

    Correct Answer
    A. Long- and short-term debt
    Explanation
    The balance sheet for a firm shows the long- and short-term debt. This is because the balance sheet provides a snapshot of a company's financial position at a specific point in time, including its liabilities. Long-term debt refers to obligations that are due in more than one year, such as bonds or mortgages, while short-term debt refers to obligations that are due within one year, such as bank loans or accounts payable. By including these debt obligations on the balance sheet, stakeholders can assess the company's ability to meet its financial obligations and manage its debt levels.

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  • 24. 

    Which of the following is an advantage of a decentralized distribution center?

    • Easy coordination between distribution centers

    • Does not react quickly to local demand

    • Reduce coordination and communication expenses

    • Reduce the system safety stock

    Correct Answer
    A. Reduce coordination and communication expenses
    Explanation
    A decentralized distribution center offers the advantage of reducing coordination and communication expenses. This is because when distribution centers are decentralized, they are located closer to their respective markets or customers. This proximity allows for more efficient and direct coordination between the distribution center and the local demand, eliminating the need for excessive communication and coordination across long distances. As a result, the expenses associated with coordinating and communicating between different centers are reduced, leading to cost savings for the organization.

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  • 25. 

    Which of the following costs are associated with variable transportation cost?

    • Pickup and delivery

    • Terminal handling

    • Line haul costs

    • Billing costs

    Correct Answer
    A. Line haul costs
    Explanation
    Line haul costs are associated with variable transportation cost because they directly depend on the distance traveled and the quantity of goods being transported. These costs include expenses related to fuel, maintenance, and driver wages, which can vary based on the specific transportation requirements. On the other hand, pickup and delivery, terminal handling, and billing costs are more fixed or independent of the distance or quantity being transported, making them less variable in nature.

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  • 26. 

    Which of the following is the most likely impact of doubling the ordering costs for an item

    • The order quantity will increase

    • The order point will increase

    • The order quantity will decrease

    • The order point will decrease

    Correct Answer
    A. The order quantity will increase
    Explanation
    When the ordering costs for an item are doubled, it becomes more expensive to place an order for that item. As a result, businesses tend to increase the order quantity to reduce the frequency of orders and minimize the impact of the increased ordering costs. By ordering larger quantities, they can stock up on inventory and reduce the number of orders they need to place, thereby saving on ordering costs. Therefore, the most likely impact of doubling the ordering costs for an item is that the order quantity will increase.

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  • 27. 

    Work in process inventory serves to decouple which of the following?

    • Production from suppliers

    • Finished good inventory from customer demand

    • An operation from succeeding operations

    • Production distribution channels

    Correct Answer
    A. An operation from succeeding operations
    Explanation
    Work in process inventory serves to decouple an operation from succeeding operations. This means that it helps to create a buffer between different stages of the production process, allowing each operation to work at its own pace without being dependent on the speed or efficiency of the preceding or succeeding operations. This decoupling helps to prevent bottlenecks and allows for smoother production flow.

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  • 28. 

    Which of the following defines the sequence of operations to be performed to manufacture a part?

    • Item master

    • Bill of material

    • Routing

    • Shop calendar

    Correct Answer
    A. Routing
    Explanation
    Routing is the correct answer because it defines the sequence of operations to be performed in order to manufacture a part. It outlines the specific steps and processes that need to be followed, including the order in which they should be executed. This ensures that the manufacturing process is efficient and that all necessary tasks are completed in the correct order. The routing also includes information on the resources and equipment required for each operation, as well as any dependencies or constraints that need to be considered.

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  • 29. 

    Which of the following is used to manage queues and lead times?

    • Forward scheduling

    • Rough-cut capacity planning

    • Material requirements planning

    • Input/output control

    Correct Answer
    A. Input/output control
    Explanation
    Input/output control is used to manage queues and lead times. It involves monitoring and controlling the flow of materials, information, and resources in a production or service system. It ensures that inputs are processed efficiently and outputs are delivered on time. By managing queues and lead times, input/output control helps to optimize the overall performance and productivity of the system.

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  • 30. 

    Which of the following is used to rank the frequency of problems?

    • Pareto analysis

    • Cause-and-effect diagram

    • Process flow diagram

    • Root Cause analysis

    Correct Answer
    A. Pareto analysis
    Explanation
    Pareto analysis is used to rank the frequency of problems by applying the Pareto principle, also known as the 80/20 rule. This principle states that 80% of the effects come from 20% of the causes. In the context of problem-solving, Pareto analysis helps identify and prioritize the most significant issues that contribute to the majority of the problems. By focusing on these vital few causes, organizations can allocate their resources more effectively and address the root causes that have the most impact on overall performance.

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  • 31. 

    Driver costs usually appear as what type of transportation costs?

    • Fixed transportation cost

    • Burdened into line haul cost

    • Variable transportation cost

    • Expensed as a portion of terminal cost

    Correct Answer
    A. Variable transportation cost
    Explanation
    Driver costs usually appear as variable transportation costs because they can vary depending on factors such as distance traveled, fuel consumption, and time spent on the road. These costs are directly related to the level of activity or volume of goods being transported. As the volume of transportation increases, the driver costs also increase proportionally. Therefore, driver costs are considered a variable expense in transportation operations.

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  • 32. 

    Which of the following is used to determine the feasibility of material requirements plan?

    • Resource requirements planning

    • Rough-cut capacity planning

    • Capacity requirements planning

    • Work center capacity control

    Correct Answer
    A. Capacity requirements planning
    Explanation
    Capacity requirements planning is used to determine the feasibility of a material requirements plan. This process involves analyzing the production capacity and resources available to meet the material requirements. By considering factors such as available labor, machinery, and time, capacity requirements planning helps to ensure that the material requirements can be met within the given constraints. It helps in identifying any potential bottlenecks or capacity issues that may arise during the production process, allowing for adjustments and optimization of resources to meet the required demand.

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  • 33. 

    Which of the following combinations is best suited for developing customer promise dates in the make-to-order environment?

    • Forward scheduling and infinite loading

    • Forward scheduling and finite loading

    • Backward scheduling and infinite loading

    • Backward scheduling and finite loading

    Correct Answer
    A. Forward scheduling and finite loading
    Explanation
    In a make-to-order environment, forward scheduling is the best approach as it starts from the current date and works forward to determine the best delivery date for the customer. This ensures that the customer promise dates are realistic and achievable. Finite loading is also preferred as it considers the capacity and resources available, ensuring that the production schedule is balanced and not overloaded. This combination of forward scheduling and finite loading allows for effective planning and meeting customer expectations.

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  • 34. 

    Which of the following is a benefit to the supplier of a long-term customer-supplier relationship?

    • An improved ability to plan

    • Improved product quality

    • More frequent shipments

    • Reduced transportation costs

    Correct Answer
    A. An improved ability to plan
    Explanation
    A long-term customer-supplier relationship provides the supplier with an improved ability to plan. This is because having a stable and consistent customer allows the supplier to anticipate and forecast demand more accurately. With this knowledge, the supplier can plan their production, inventory, and resources more effectively, leading to better efficiency and cost savings. Additionally, a long-term relationship fosters better communication and understanding between the parties, enabling the supplier to align their plans and strategies with the customer's needs and requirements.

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  • 35. 

    Manufacturing has a primary responsibility for which of the following dimensions of quality? ON THE TEST????

    • Product performance

    • Aesthetics

    • Conformance

    • Aftermarket service

    Correct Answer
    A. Conformance
    Explanation
    Manufacturing has a primary responsibility for ensuring that products meet the required specifications and standards, which is known as conformance. This involves producing goods that consistently meet the desired quality and performance expectations. While product performance and aesthetics are important dimensions of quality, they are not solely the responsibility of manufacturing. Aftermarket service, on the other hand, refers to the support and assistance provided to customers after the sale, which is not directly related to manufacturing. Therefore, conformance is the correct answer as it pertains to the manufacturing process and its role in maintaining quality standards.

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  • 36. 

    Which of the following is an advantage of point-of-use inventory over central storage?---DID WE LEARN POINT OF USE???

    • The ease of control

    • Reduced material handling

    • The ease of maintaining inventory records

    • Reduced safety stock

    Correct Answer
    A. Reduced material handling
    Explanation
    Point-of-use inventory refers to storing materials or supplies directly at the location where they are needed, such as near a production line or workstation. This approach offers the advantage of reduced material handling because the materials are easily accessible and do not need to be transported from a central storage location. This can save time and effort in moving materials around, leading to increased efficiency and productivity.

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  • 37. 

    The line-haul costs vary directly with which of the following

    • The weight shipped

    • The distance shipped

    • Carrier used

    • The degree of hazard associated with the product shipped

    Correct Answer
    A. The distance shipped
    Explanation
    The line-haul costs vary directly with the distance shipped because the longer the distance, the more fuel, labor, and maintenance costs are incurred by the carrier. The distance traveled also affects the time taken for transportation, which can impact the overall cost. Therefore, as the distance increases, the line-haul costs also increase.

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  • 38. 

    Total employee involvement will result in an increase in which of the following roles for first-line supervision?--- MAYBE?

    • Controlling

    • Coaching

    • Disciplining

    • Reporting

    Correct Answer
    A. Coaching
    Explanation
    Total employee involvement will result in an increase in the coaching role for first-line supervision. When employees are actively engaged and involved in their work, they are more likely to seek guidance, support, and feedback from their supervisors. This creates an opportunity for supervisors to take on a coaching role, providing guidance, mentoring, and development opportunities to help employees improve their skills and performance. Coaching becomes essential in nurturing and empowering employees to reach their full potential and achieve organizational goals.

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  • 39. 

    Which of the following is typically characterized as an element of the supply chain?

    • Finance

    • Distribution

    • Quality control

    • Engineering

    Correct Answer
    A. Distribution
    Explanation
    Distribution is typically characterized as an element of the supply chain because it involves the movement of goods from the manufacturer to the end consumer. It includes activities such as transportation, warehousing, and inventory management. Distribution ensures that products are delivered to the right place, at the right time, and in the right quantity. It plays a crucial role in meeting customer demands and optimizing the flow of goods throughout the supply chain.

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  • 40. 

    Which of the following groups should be the first to receive education on six-sigma concepts?

    • Senior Management

    • Quality inspectors

    • Production operators

    • Production supervision

    Correct Answer
    A. Senior Management
    Explanation
    Senior Management should be the first to receive education on six-sigma concepts because they are responsible for setting the overall strategic direction of the organization. By understanding and implementing six-sigma concepts, they can effectively lead the organization towards achieving quality improvement and operational excellence. Additionally, senior management plays a crucial role in allocating resources, making key decisions, and driving change within the organization, making it essential for them to have a deep understanding of six-sigma concepts to effectively support and guide the implementation process.

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  • 41. 

    Which of the following would most likely serve as an effective measure of supplier performance?

    • Component price

    • Internal Scrap rate

    • Transportation mode

    • Delivery Time

    Correct Answer
    A. Delivery Time
    Explanation
    Delivery time is the most likely effective measure of supplier performance because it directly reflects the supplier's ability to meet deadlines and fulfill orders on time. It indicates the efficiency and reliability of the supplier in delivering goods or services to the customer. A shorter delivery time implies better performance and customer satisfaction, while delays in delivery can lead to disruptions in production and customer dissatisfaction. Therefore, monitoring and improving delivery time can help assess and enhance supplier performance.

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  • 42. 

    In projecting demand for a standard design commodity, which of the following factors is typically most important?

    • Post-sales service

    • Product features

    • Competitive pricing

    • Quality controls

    Correct Answer
    A. Competitive pricing
    Explanation
    Competitive pricing is typically the most important factor in projecting demand for a standard design commodity. This is because customers are often price-sensitive and tend to choose products that offer the best value for their money. While post-sales service, product features, and quality controls are also important considerations, competitive pricing plays a significant role in attracting customers and influencing their purchasing decisions.

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  • 43. 

    Providing customers with what they want at low cost describes the relationship between which of the following

    • Quality management and lean

    • Quality management and production planning

    • ERP and lean

    • Quality management and CRP

    Correct Answer
    A. Quality management and lean
    Explanation
    Quality management and lean are closely related because both focus on providing customers with what they want at a low cost. Quality management ensures that products or services meet or exceed customer expectations, while lean principles aim to eliminate waste and increase efficiency in processes. By implementing quality management practices and lean principles, organizations can improve customer satisfaction, reduce costs, and enhance overall performance.

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  • 44. 

    Which of the following is a good measure of customer focus?

    • High organizational turnover

    • High quality levels

    • Many performance measures

    • Many supplier contracts

    Correct Answer
    A. High quality levels
    Explanation
    High quality levels are a good measure of customer focus because they indicate that the organization is dedicated to delivering products or services that meet or exceed customer expectations. When a company focuses on maintaining high quality levels, it shows that they prioritize customer satisfaction and are committed to providing a positive experience. This can lead to increased customer loyalty, repeat business, and positive word-of-mouth referrals.

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  • 45. 

    Which of the following is a major consideration when selecting a supplier?

    • Supplier employee benefits

    • Supplier forecast accuracy

    • Supplier manufacturing reliability

    • Supplier pre-sales marketing success

    Correct Answer
    A. Supplier manufacturing reliability
    Explanation
    When selecting a supplier, one of the major considerations is their manufacturing reliability. This refers to the supplier's ability to consistently produce and deliver products on time and in the desired quantity and quality. Manufacturing reliability is crucial for ensuring a smooth supply chain and minimizing disruptions or delays in the production process. By choosing a supplier with a strong track record of manufacturing reliability, businesses can have confidence in their ability to meet customer demand and maintain a consistent level of product availability.

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  • 46. 

    Which of the following is typically the largest element of physical distribution costs?

    • Order processing

    • Material handling

    • Transportation

    • Protective packaging

    Correct Answer
    A. Transportation
    Explanation
    Transportation is typically the largest element of physical distribution costs because it involves the movement of goods from one location to another. This process includes various expenses such as fuel costs, vehicle maintenance, driver wages, and insurance. Additionally, transportation costs can be influenced by factors such as distance, mode of transportation (e.g., air, sea, road), and the volume of goods being transported. Therefore, due to the significant expenses associated with transportation, it is usually the largest element of physical distribution costs.

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  • 47. 

    Why is manufacturing important to the economy?

    • It adds value to products to generate wealth.

    • B. It uses natural resources and prevents waste.

    • It decreases employment and generates wealth.

    • It prevents waste and decreases employment.

    Correct Answer
    A. It adds value to products to generate wealth.
    Explanation
    Manufacturing is important to the economy because it adds value to products, which in turn generates wealth. By transforming raw materials into finished goods, manufacturing creates products that have a higher value than the sum of their individual components. This value addition leads to increased economic activity, job creation, and ultimately, wealth generation. Manufacturing also plays a crucial role in driving innovation, productivity, and export competitiveness, making it a vital sector for economic growth and development.

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  • 48. 

    In a traditional manufacturing environment, which of the following objectives are in conflict?

    • Maximizing customer service and increasing inventory investment

    • Minimizing production costs and increasing inventory investment

    • Minimizing production costs and decreasing inventory investment

    • Minimizing customer service and decreasing inventory investment

    Correct Answer
    A. Minimizing production costs and decreasing inventory investment
    Explanation
    Longer production runs increases investment in inventory because creating more materials!! LEARN THIS ONE!!

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  • 49. 

    Which of the following statements is true?

    • The objectives of marketing and production can be met with higher inventories.

    • The objectives of marketing and finance can be met with higher inventories.

    • The objectives of marketing and production can be met with lower inventories.

    • The objectives of marketing and finance can be met with lower inventories.

    Correct Answer
    A. The objectives of marketing and production can be met with higher inventories.

Quiz Review Timeline (Updated): Aug 14, 2024 +

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  • Current Version
  • Aug 14, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 15, 2009
    Quiz Created by
    Agafish

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