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Free CPIM Exam Braindumps
Certified in Production and Inventory Management Questions 126–130 (page: 27)

Updated On: 9-Feb-2026
Page 27 of 119
PDF with 588 Questions

Each of the following actions would reduce safety stock levels EXCEPT:

  1. reduce forecast error
  2. increase lead times
  3. reduce the customer service target
  4. adopt a make-to-order strategy

Answer(s): B



This forecast performance is best described as:

  1. biased
  2. Random Error
  3. Efficient
  4. Naive

Answer(s): A



Planned order receipt is generated by MRP when:

  1. net requirements are greater than zero
  2. gross requirements are greater than zero
  3. projected available balance is above zero
  4. forecasted demand is less than planned supply

Answer(s): A



Each of the following actions would reduce safety stock levels EXCEPT:

  1. Reduce forecast error
  2. Increase lead times
  3. Reduce the customer service target
  4. Adopt a make-to-order strategy

Answer(s): B



Which tactic would successfully reduce cycle stock?

  1. Increase annual usage of an item
  2. Reduce ordering costs
  3. Reduce carrying costs
  4. Increase setup costs

Answer(s): B



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