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

Updated On: 24-Feb-2026
Page 16 of 119
PDF with 588 Questions

Over the time span of the production plan, large changes in capacity are usually not possible. Additions or subtractions in plant and equipment are impossible or very difficult to accomplish in this period. However, some changes can be done. Which of the following are out of those variations?

  1. People can be hired and laid off, overtime and short-time can be worked, and shifts can be added or removed.
  2. Inventory can be built up in slack periods and sold or used in periods of high demand.
  3. Work can be subcontracted or extra equipment leased
  4. All of these

Answer(s): D



Production planning problem typically has the following characteristics EXCEPT:

  1. A time horizon of 12 months is used, with periodic updating perhaps every month or quarter
  2. Production demand consists of one or a few product families or common units
  3. Demand is rarely fluctuating
  4. Plant and equipment are fixed within the time horizon

Answer(s): C



Basic strategies that can be used in a production plan may be:

  1. Chase strategy
  2. Production leveling strategy
  3. Subcontracting
  4. Any one of these

Answer(s): D



A company wants to produce 10, 000 units of an item over the next three months at a level rate. The first month has 20 working days; the second, 21 working days; and the third, 12 working days because of an annual shutdown. On the average, how much should the company produce each day to level production?

  1. 118.8 units
  2. 188.7 units
  3. 189.7 units
  4. 180.00 units

Answer(s): B



The advantage/s of production leveling is/are:

  1. It results in smooth level off operation that avoids the costs of changing production levels.
  2. Firms do not need to have excess capacity to meet peak demand
  3. Firms do not need to hire and train workers and lay them off in slack periods
  4. All of these

Answer(s): D






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