APICS CPIM-BSCM Exam
CPIM Basics of Supply Chain Management (Page 5 )

Updated On: 26-Jan-2026

Which of the following statements describes a primary function of distribution inventory?

  1. It protects against random changes in supply, demand, or lead time.
  2. It helps to smooth production in periods of changing demand.
  3. It is built to take advantage of quantity discounts.
  4. It allows goods to be placed in close proximity to the customer.

Answer(s): D



Which of the following documents is generated to show required components for a shop order?

  1. Master production schedule
  2. Bill of materials
  3. Picking list
  4. Advance shipping notice

Answer(s): C



Which of the following processes commits orders against available capacity as well as inventory?

  1. Available-to-promise
  2. Capable-to-promise
  3. Engineered-to-order
  4. Make-to-order

Answer(s): B



Which of the following variables best represents a strategic performance measure?

  1. Revenue growth
  2. Machine utilization
  3. Work center capacity
  4. Cycle time

Answer(s): A



Production activity control receives authorization to release work orders from:

  1. the material requirements plan.
  2. the master production schedule.
  3. production planning.
  4. input/output control.

Answer(s): A



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