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APICS CPIM Exam
Certified in Production and Inventory Management (Page 13 )

Updated On: 30-Jan-2026
Page 13 of 119
PDF with 588 Questions

Using the ______________ , the quantity on hand of a particular item is determined at specified, fixed-time intervals and an order is placed.

  1. Walkthroughs
  2. Formal technical reviews
  3. Periodic review system
  4. Quality control

Answer(s): C



The quantity on hand plus the quantity ordered must equal the sum of the demand during the lead time plus the demand during the review period plus safety stock.

  1. True
  2. False

Answer(s): A



The quantity equal to the demand during the lead time plus the demand during the review period plus safety stock id called:

  1. Target value
  2. Demand value
  3. Review process value
  4. All of the above

Answer(s): A



The formula to calculate the Target value is:

  1. T = D (R + L) + SS
  2. T = D (R + L) * SS
  3. T = D (R -L) + SS
  4. T = D (R -) / SS

    Where T = target level, D = demand pr unit of time, lead-time duration, R = review- period duration, SS = safety stock

Answer(s): A



To provide the required level customer service, to minimize the costs of transportation and handling, and to be able to interact with the factory to minimize the scheduling problems are all objectives of:

  1. Central supply management
  2. Order completeness management
  3. Distribution inventory management
  4. None of the above

Answer(s): C



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