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APICS CPIM-BSP : Practice Test

Topic break down
Topic
No. of Questions
Topic 1: Business-wide Concepts
39
Topic 2: Demand Management
29
Topic 3: Transformation of Demand
44
into Supply
Topic 4: Supply
43
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Topic 1, Business-wide Concepts
Question No : 1 - (Topic 1)
Which of the following manufacturing environments presents the greatest complexity in
promising completion dates for customer orders?
A. Flow
B. Repetitive
C. Continuous
D. Intermittent
Answer: D
The question below is based on the following cost information:
What is the carrying cost?
A. 14%
B. 16%
C. 20%
D. 25%
Answer: D
Gemba is a Japanese word meaning:

A. shop floor.
B. shop order.
C. shop packet.
D. shop traveler.
Answer: A
Which practice focuses on root cause analysis?
A. Statistical process control

B. Five whys
C. Scatter diagram
D. Pareto chart
Answer: B
Which of the following situations is characteristic of a make-to-stock environment?
A. Work in process (WIP) represents the largest cost of inventory.

B. The impact of technology on the production process will be large.
C. The master schedule is stated at the finished product level.
D. Customer involvement is typically very high.
Answer: C
In an assemble-to-order production environment, the master production schedule contains:
A. standard items.
B. finished items.
C. raw materials.
D. subassemblies.

Answer: D
The primary purpose of enterprise resources planning is to:
A. focus on the manufacturing function within an organization.

B. integrate an approach to business management.
C. use external knowledge to seek an internal advantage.
D. provide data protection along the supply chain.
Answer: B
A firm offers products configured from a large number of stocked options. Which of the
following production environments is the firm most likely to use?
A. Engineer-to-order
B. Make-to-order
C. Assemble-to-order
D. Make-to-stock
Answer: C
The overall objective of an integrated supply chain can best be described as the
achievement of:
A. decreased lead time.

B. increased supplier partnerships.
C. an efficient flow of materials and information.
D. an efficient flow of production.
Answer: C

Which of the following statements characterizes an intermittent manufacturing
environment?
A. Work center load is predictable.

B. Routings for all products are the same.
C. Work centers are organized by function.
D. Kanban is the most appropriate scheduling method.
Answer: C
Which of the following tools is considered to be one of the seven quality tools?
A. Gantt chart
B. Input/output chart
C. Control chart
D. Capacity chart
Answer: C
The principal objective of total quality management in manufacturing is to:
A. implement statistical process control.

B. meet the expectations of the customer.
C. reduce the costs of failure.
D. eliminate inspections.
Answer: B
A company's cost of goods sold would be found on which of the following financial

documents?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Performance statement
Answer: B
Which of the following items is considered an external failure cost?
A. Warranty cost
B. Incoming inspection
C. Prevention cost
D. Appraisal cost
Answer: A
Which of the following characteristics is most distinctive of lean manufacturing?
A. Teamwork
B. Continuous improvement
C. Qualitative measurements
D. Bottom-line results
Answer: B
Which of the following types of manufacturing processes would tend to have the lowest
work in process (WIP) inventory?
A. Project

B. Intermittent
C. Batch
D. Flow
Answer: D
Which of the following techniques typically eliminates common errors?
A. Practical kaizen training

B. Kaizen
C. Poka-yoke
D. Kanban
Answer: C
After a quality improvement program has been successfully implemented, the greatest cost
of controlling quality typically is the cost of:
A. failure.
B. appraisal.
C. prevention.
D. inspection.
Answer: C
Having bolts and tools at the point of use on the automobile assembly line eliminates the
waste of :
A. waiting.
B. overproduction.
C. making defects.

D. stocks.
Answer: A
Inventory turns is an appropriate performance measure for which of the following
functions?
A. Material control
B. Activity-based costing control
C. Total quality management
D. Flexible manufacturing
Answer: A
The theory of constraints is most effective when:
A. demand environments are unstable.

B. demand environments are stable.
C. the constraint cannot be managed easily.
D. the constraint cannot be identified easily.
Answer: B
Which of the following concepts could a firm implement to reduce defects?
A. Hansei
B. Jidoka
C. Muri
D. Heijunka
Answer: B
The heijunka philosophy can best be described as:
A. level production.
B. make-to-stock production.
C. a chase production strategy.
D. produce to stock production.
Answer: A
Having the needed materials within easy reach of a subassembly process eliminates waste
of:
A. motion.
B. transportation.
C. making defects.
D. stocks.
Answer: A
Reducing set up time will affect item lead time and throughput in which of the following
ways?
A. Lead time will increase, throughput will decrease

B. Lead time will increase, throughput will increase
C. Lead time will decrease, throughput will increase
D. Lead time will decrease, throughput will decrease
Answer: C
10
A production rate based on customer demand is called:
A. cycle time.
B. takt time.
C. lead time.
D. queue time.
Answer: B
An electronic board that provides visibility on the production floor is:
A. andon.
B. anova.
C. ANSI.
D. alpha factor.
Answer: A
Which of the following issues would be of greatest concern for a company choosing to
reduce its finished goods inventory?
A. Long production changeover time

B. Customer service expectations
C. Product quality requirements
D. Product shelf life constraints
Answer: B
11

Which of the following manufacturing systems involves the creation of one unit or a small
number of units?
A. Flow manufacturing
B. Intermittent manufacturing
C. Project manufacturing
D. Continuous manufacturing
Answer: C
Manufacturing overhead includes which of the following types of costs?
A. Interest expense
B. Supervision
C. Direct labor
D. Direct material
Answer: B
Which of the following types of layouts is most efficient in a lean production environment?
A. Islands
B. Connected islands
C. Functional layout
D. Cells
Answer: D
In the income statement, the cost of goods sold is related to the:
A. sales dollars.
12

B. total inventory dollars.
C. marketing expenses.
D. manufacturing expenses.
Answer: D
Which plant type describes a product at one stage that can be transformed into several
distinct products at the next stage (divergent points)?
A. A-Plant
B. I-Plant
C. T-Plant
D. V-Plant
Answer: D
Which of the following production environment strategies requires unique design or
significant customization?
A. Make-to-order
B. Assemble-to-order
C. Make-to-stock
D. Engineer-to-order
Answer: D
Which of the following manufacturing processes would be characterized by a narrow range
of standard products, low direct labor costs, and a high level of technical support for
manufacturing?
A. Jobbing
13

B. Intermittent
C. Flow
D. Project
Answer: C
Which of the following factors is included in cost of goods sold?
A. Revenue
B. General and administrative expenses
C. Overhead
D. Standard cost
Answer: C
Which of the following is a graphical representation of a frequency distribution?
A. Cause-and-effect diagram
B. Pareto analysis
C. Scatter diagram
D. Histogram
Answer: D
The lean production concept works best in which of the following manufacturing
environments?
A. Make-to-order
B. Intermittent
C. Project
D. Flow
14

Answer: D
Which of the following terms refers to the practice of stopping the production line when a
defect occurs?
A. Haiku
B. Arigato
C. Poka-yoke
D. Jidoka
Answer: D
Topic 2, Demand Management
An order winner is a competitive characteristic that:
A. is universal between customers and markets.

B. differentiates among potential customers.
C. a company must exhibit to be considered a potential supplier.
D. a company must exhibit to gain new sales.
Answer: D
Which of the following forecast inputs is considered to be intrinsic data?
A. Demographic
B. Econometric
C. Historical sales
D. Market survey
Answer: C
15
Which of the following functional areas decides the product to be supplied and the
customers to be served?
A. Engineering
B. Finance
C. Manufacturing
D. Marketing
Answer: D
When demand is uncertain, what is the most appropriate action to take?
A. Recalculate safety stock

B. Increase order quantity
C. Change method of transportation
D. Increase number of warehouses for distribution
Answer: A
A product has a forecast of 200 units a month. The actual demand for the past 6 months
has been 195, 210, 205, 190, 220, and 225. Which of the following values reflects the
mean absolute deviation for this data?
A. 7.5
B. 12.5
C. 45
D. 75
Answer: B
16

Which of the following factors most likely will impact the demand for a firm's products or
services?
A. Forecast accuracy
B. Order processing system
C. Competition
D. Planning horizon
Answer: C
Which of the following factors is most likely to affect the demand for a company's services
or products?
A. The sales and operations plan

B. Demand forecasting
C. Resource availability
D. Economic conditions
Answer: D
Which of the following forecasting techniques eliminates the need to keep months of
historical data?
A. Exponential smoothing
B. Seasonal index
C. Delphi
D. Trend
Answer: A
17

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Looking for Real Exam Questions for IT Certification Exams!

For pricing and placing order, please visit http://certificationking.com/order.html

APICS CPIM-BSP : Practice Test

Topic 1: Business-wide Concepts

Topic 2: Demand Management

Topic 3: Transformation of Demand

APICS CPIM-BSP : Practice Test

What is the carrying cost?

APICS CPIM-BSP : Practice Test

A. Statistical process control

A. Work in process (WIP) represents the largest cost of inventory.

APICS CPIM-BSP : Practice Test

A. focus on the manufacturing function within an organization.

A. decreased lead time.

APICS CPIM-BSP : Practice Test

A. Work center load is predictable.

A. implement statistical process control.

APICS CPIM-BSP : Practice Test

APICS CPIM-BSP : Practice Test

A. Practical kaizen training

APICS CPIM-BSP : Practice Test

A. demand environments are unstable.

APICS CPIM-BSP : Practice Test

A. Lead time will increase, throughput will decrease

APICS CPIM-BSP : Practice Test

A. Long production changeover time

APICS CPIM-BSP : Practice Test

APICS CPIM-BSP : Practice Test

APICS CPIM-BSP : Practice Test

APICS CPIM-BSP : Practice Test

Topic 2, Demand Management

A. is universal between customers and markets.

APICS CPIM-BSP : Practice Test

A. Recalculate safety stock

APICS CPIM-BSP : Practice Test

A. The sales and operations plan

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