APICS CPIM Exam
Certified in Production and Inventory Management (Page 16 )

Updated On: 30-Jan-2026

What exist because of the time needed to move goods from one location to another such as from a plant to a distribution center or a customer?

  1. Stable inventories
  2. Operating inventories
  3. Pipeline inventories
  4. Cyclic inventories

Answer(s): C



Items purchased or manufactured in quantities greater than needed immediately create ______________ .

  1. bulk-size inventories
  2. massive-size inventories
  3. lion's share inventories
  4. lot-size inventories

Answer(s): D



If demand or lead time is greater than forecast, then what will occur?

  1. Invaluable stock
  2. Unpredictable stock
  3. Stockout
  4. Vulnerable stock

Answer(s): C



______________ is held to cover random unpredictable variations in supply and demand or lead time.

  1. Safety stock
  2. Variant stock
  3. Anticipatory change inventory
  4. Random contemporary stock

Answer(s): A



Which of the following plant is used in the production process, where few raw materials can be made into several end products?

  1. I-plant
  2. A-plant
  3. V-plant
  4. G-plant

Answer(s): C



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