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APICS CPIM Exam Questions
Certified in Production and Inventory Management (Page 6 )

Updated On: 21-Feb-2026
Page 6 of 119
PDF with 588 Questions

Which of the following help to achieve marketing objectives?

  1. Maintain high inventories to goods are always available for the customers
  2. Interrupt production runs so that a non-inventoried item can be manufactured quickly
  3. Create an extensive and costly distribution system so good can be shipped to the customer rapidly
  4. All of these

Answer(s): D



All of the following are ways to achieve financial objectives EXCEPT:

  1. Reduce inventory so inventory investment is at a minimum level
  2. Decrease the number of plants and warehouses
  3. Extensive distributions system
  4. Manufacture only to customer order

Answer(s): C



Production must keep its operating cost as low as possible this can be done in the following way/ways:

  1. Make long production runs of relatively few production runs of relatively few products. Fewer Changeovers will be needed and specialized equipment can be used thus reducing the cost of making the product
  2. Maintain high inventories of raw materials and work-in-process so production is not disrupted by shortages.
  3. Manufacture only to customer order
  4. Provide lowest distribution costs

Answer(s): A,B



The Question mark represents:

  1. Inventories
  2. Payables
  3. Cost of goods solved
  4. None of these

Answer(s): A



Important way to resolve conflicting objective is:

  1. To provide close coordination of the supply, production and distribution functions.
  2. Balance conflicting objectives to minimize the total of all costs involved
  3. Integrated materials management or logistics organization
  4. All statements related ones.

Answer(s): D






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