CPIM-BSP Free Practice Test

- (Topic 4)
Which of the following statements describes a primary function of distribution inventory?

1. A. It protects against random changes in supply, demand, or lead time.
2. B. It helps to smooth production in periods of changing demand.
3. C. It is built to take advantage of quantity discounts.
4. D. It allows goods to be placed in close proximity to the customer.

Correct Answer: D

- (Topic 3)
Material requirements planning requires which of the following files to plan requirements?

1. A. Standard cost
2. B. Bill of materials
3. C. Routing
4. D. Work center

Correct Answer: B

- (Topic 4)
Which of the following statements best describes an example of advance ship notice?

1. A. An electronic data interchange communication indicating that an order has left the port of loading
2. B. A person who handles international shipping documentation and transportation requirements
3. C. A fee for material held at port longer than the standard unloading time
4. D. A listing of the items included in an overseas shipment

Correct Answer: A

- (Topic 1)
The question below is based on the following cost information:

What is the carrying cost?

1. A. 14%
2. B. 16%
3. C. 20%
4. D. 25%

Correct Answer: D

- (Topic 4)
Which method of record audit is concerned with the total value of inventory?

1. A. Weight counts
2. B. Cycle counts
3. C. Physical inventory
4. D. Sampling records

Correct Answer: C