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APICS CPIM Exam Questions
Certified in Production and Inventory Management (Page 19 )

Updated On: 24-Feb-2026
Page 19 of 119
PDF with 588 Questions

If the opening inventory is 400 units, demand is 900 units, and production is 800 units, what will be the ending inventory?

  1. 400 units
  2. 200 units
  3. 300 units
  4. 350 units

Answer(s): C



A company wants to produce 500 units over the next 3 months at a level rate. The months have 19, 20 and 21 working days, respectively. On the average, how much should the company produce each day to level productions?

  1. 8.3 units
  2. 88.8 units
  3. 8.9 units
  4. None of these

Answer(s): A



Because of its labor contracts, a company must hire enough labor for 100 units of production per week on one shift or 200 units per week on two shifts, it cannot hire, layoff, or assign overtime. During the fourth week, workers will be available from another department to work part or all of an extra shift (up to 100 units). There is a planned shutdown for maintenance in the second week, which will cut production to half. Develop a production plan. The opening inventory is 200 units, and the desired ending inventory is 300 units.



If the opening backlog is 500 units, forecast demand is 700 units. And production is 800 units, what will be the ending backlog?

  1. 400 units
  2. 500 units
  3. 600 units
  4. All of these

Answer(s): A



The major advantage of subcontracting is:

  1. Costs associated with excess capacity are avoided, and because production is leveled, there are no costs associated with changing production levels.
  2. Cost of purchasing (item cost, purchasing, and transportation and inspection costs) may be greater than if the item were made in the plant.
  3. Inventories can be kept to a minimum
  4. No need to hire and train workers.

Answer(s): A



The information needed to develop an MPS is provided by:

  1. The production plan
  2. Forecasts for individual end items
  3. Actual orders received from customers and for stock replenishment
  4. All of these

Answer(s): D






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