APICS CPIM Exam
Certified in Production and Inventory Management (Page 3 )

Updated On: 30-Jan-2026

The formula to calculate the period-order quantity is:

  1. Period-order quantity = EOQ / average yearly usage
  2. Period-order quantity = EOQ / average monthly usage
  3. Period-order quantity = EOQ * average monthly usage
  4. Period-order quantity = EOQ / average weekly usage Where EOQ is Economic-Order- Quantity

Answer(s): D



A full load costs more per ton to ship than a part load

  1. True
  2. False

Answer(s): B



Annual cost of pacing orders and annual cost of carrying inventory, together forms:

  1. Annual cost
  2. Determined cost
  3. Permanent cost
  4. Relevant cost

Answer(s): D



When the quantity of an item on hand in inventory falls to a predetermined level called:

  1. Demand point
  2. Lead level
  3. Order point
  4. None of the above

Answer(s): C



______________ is used to protect against timing uncertainty by planning order releases and order receipts earlier than required.

  1. Fast order release
  2. Safety lead time
  3. Direct release
  4. Lead command

Answer(s): B



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