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APICS CPIM Exam
Certified in Production and Inventory Management (Page 2 )

Updated On: 30-Jan-2026
Page 2 of 119
PDF with 588 Questions

Operations management works in a complex environment affected by many factors.
Among the most important are:

  1. Government regulation
  2. the economy and competition
  3. Customer expectations and quality
  4. all of these

Answer(s): D



What occurs when the cost of ordering equals the cost of carrying?

  1. Exact-order completeness
  2. Predetermined carrying cost
  3. Economic-order quantity
  4. Ordering cost quantity

Answer(s): C



The Economic-order quantity will increase as the annual demand and the cost of ordering decrease, and it will decrease as the cost of carrying inventory and the unit cost increase.

  1. True
  2. False

Answer(s): B



The purchase cost of the stock-keeping units or the cost of manufacturing the item is called:

  1. Unit cost
  2. Key cost
  3. Economic cost
  4. Elementary cost

Answer(s): A



______________ uses the economic-order-quantity formula to calculate an economic time between orders.

  1. production-order quantity
  2. period-order quantity
  3. inventory-carrying-order quantity
  4. All of the above

Answer(s): B



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