CPIM Certification Exam Questions with AI Explanations

QUESTION: 76

Which of the following results in inventory build ups in low-demand periods?

Production leveling strategy
Chase strategy
Hybrid strategy
None of these

Answer(s): A

In some industries, _____________ is the only strategy that can be followed. Farmers, for instance, must produce in the growing season. The post office must process mail over the Christmas rush and in slack seasons. Restaurants have to serve meals when the customers want them. These industries cannot stockpile or inventory their products or services and must be capable of meeting demands as it occurs.

Subcontracting
Resource Planning
Chase strategy
Production leveling strategy

Answer(s): C

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QUESTION: 78

Total the forecast demand for the planning horizon. Determine the opening inventory and the desired ending inventory Calculate the total production required as follows:

Total Production = total forecast + back orders
+ ending inventory opening inventory
Calculate the production required each period by dividing the total production by the number of periods.
Calculate the ending inventory for each period.
Above is the general procedure

for developing a level production
to forecast capacity requirements to meet demand
To identify the production gaps
All of these

Answer(s): A

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QUESTION: 79

The information needed to make a production plan is:

Forecast by period for the planning horizon
Opening inventory and desired ending inventory
Any past-due customer orders. These are orders that are late for delivery and are sometimes back orders.
All of these

Answer(s): D

Explanation:

Example:
Amalgamated Fish Sinkers makes a product group of fresh fish sinkers and want to develop a production plan for them. The expected opening inventory is 100 cases, and the company wants to reduce that to 80 cases by the end of the planning period. The number of working days is the same for each period. There are no back orders. The expected demand for the fish sinkers is as follows:

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