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CPIM-BSP Questions and Answers
minimize transportation and material handling costs.
classify inventory according to the total amounts of inventory required.
optimize the amount of inventory for all classifications of inventory.
establish the degree of inventory control required.
Which of the following documents or records typically is required by accounting, receiving, purchasing, andthe supplier?
Bill of lading
Economic order quantity (EOQ) is best applied when the:
product is make-to-order.
product shelf life is short.
production process is continuous.
consumption rate is uniform.
Consolidating shipments and reducing the frequency of pickups help to reduce which of the following types of costs?
Warehousing and inspection
Import duties and processing
As a company moves from domestic to global distribution, it becomes increasingly critical to control which of the following distribution costs?
The question below is based on the following information:
What is the average annual transit inventory in units?
a supplier until consumed.
the company who will consume the stock.
a joint trust set up for this purpose.
the carrier who transports the stock.
Which of the following factors is a primary consideration when contracting with a supplier?
Which of the following differences must be taken into consideration when dealing with a global distribution system?
Which of the following outcomes is a benefit of using a purchase requisition?
Improved accuracy of information
Assurance that delivery dates are met
Terms and conditions being followed
Which of the following statements about a distribution requirements planning system is true?
It is used only for service parts.
Priority is given to open orders.
Material requirements planning logic is used.
Gross requirements come from exploding the bill of material.
What is the order point when demand is 120 units per week, the lead time is 2 weeks, and safety stock is 60 units?