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Certified in Planning and Inventory Management (Part 2) Questions 71–75 (page: 16)

Updated On: 9-Feb-2026

Which of the following circumstances would cause a move from acceptance sampling to 100% inspection?

  1. History shows that the quality level has been stable from lot to lot.
  2. The company uses one of its qualified suppliers.
  3. Downstream operators encounter recurring defects.
  4. The percent of defects is expected to be greater than 5%.

Answer(s): C

Explanation:

A move from acceptance sampling to 100% inspection would be caused by the circumstance of downstream operators encountering recurring defects. Acceptance sampling is a quality control technique that uses statistical sampling to determine whether to accept or reject a production lot of material. It is employed when one or several of the following hold: testing is destructive; the cost of 100% inspection is very high; and 100% inspection takes too long1. 100% inspection is a quality control technique that examines every item in a production lot for defects or nonconformities. It is employed when the cost of passing a defective item is very high; testing is nondestructive; and 100% inspection does not take too long2.
Downstream operators are the workers or machines that perform the subsequent operations or processes on the products after they have been inspected or tested. Downstream operators encountering recurring defects means that the products that have passed the acceptance sampling or testing are still found to be defective or nonconforming by the downstream operators. This can indicate that the acceptance sampling or testing is not effective or reliable in detecting or preventing defects or nonconformities. This can also result in negative consequences, such as rework, waste, delays, customer complaints, or safety issues. Therefore, this circumstance would cause a move from acceptance sampling to 100% inspection, as it would require a more thorough and rigorous quality control technique to ensure that no defective or nonconforming products are passed to the downstream operators.
The other options are not circumstances that would cause a move from acceptance sampling to 100%

inspection. History shows that the quality level has been stable from lot to lot is not a circumstance that would cause a move from acceptance sampling to 100% inspection, but rather a circumstance that would support the use of acceptance sampling. Quality level is the proportion of conforming items in a production lot. Quality level being stable from lot to lot means that there is little variation or fluctuation in the quality of the products over time. This can indicate that the production process is under control and consistent in meeting the quality standards or specifications. Therefore, this circumstance would support the use of acceptance sampling, as it would reduce the risk of accepting a defective lot or rejecting a conforming lot.
The company uses one of its qualified suppliers is not a circumstance that would cause a move from acceptance sampling to 100% inspection, but rather a circumstance that would support the use of acceptance sampling. A qualified supplier is a supplier that has met certain quality, delivery, and service standards and has been approved by the company to supply goods or services without inspection or testing. A qualified supplier is expected to maintain a high level of performance and reliability, as well as to report any issues or deviations that may affect the delivery process. Therefore, this circumstance would support the use of acceptance sampling, as it would reduce the need for 100% inspection by relying on the supplier's quality assurance system. The percent of defects is expected to be greater than 5% is not a circumstance that would cause a move from acceptance sampling to 100% inspection, but rather a circumstance that would require a change in the acceptance sampling plan. The percent of defects is the proportion of defective items in a production lot. The percent of defects being expected to be greater than 5% means that there is a high probability of finding defective items in the production lot. This can indicate that the production process is out of control or inconsistent in meeting the quality standards or specifications. Therefore, this circumstance would require a change in the acceptance sampling plan, such as reducing the acceptable quality limit (AQL), increasing the sample size, or decreasing the acceptance number, to increase the likelihood of rejecting a defective lot. Reference := Acceptance Sampling - an overview | ScienceDirect Topics, What Is Acceptance Sampling? Definition And Examples



An important benefit of an effective work cell layout is:

  1. reduced maintenance.
  2. improved space utilization.
    C increased machine utilization.
  3. increased changeover efficiency.

Answer(s): B

Explanation:

A work cell layout is a type of process layout that arranges equipment and workers according to the sequence of operations performed on a product or service. A work cell layout can improve space utilization by reducing the amount of floor space needed for production, eliminating unnecessary material handling and storage, and increasing the flexibility of the layout. A work cell layout can also reduce cycle time, improve quality, and enhance worker motivation.


Reference:

CPIM Exam Content Manual Version 7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section 6.2:
Implement Detailed Schedules, Subsection 6.2.3: Describe the principles of work center design and layout (page 58).



Once an organization's monthly sales and operations planning (S&0OP) process has been completed, the functional responsibility of operations is to:

  1. change the master schedule to meet the sales orders.
  2. signal critical capacity constraints to top management.
  3. meet the revised production plan.
  4. produce to the current master production schedule (MPS).

Answer(s): C

Explanation:

The sales and operations planning (S&OP) process is a cross-functional process that aligns the demand and supply plans of an organization. The S&OP process consists of several steps, such as data gathering, demand planning, supply planning, pre-S&OP meeting, executive S&OP meeting, and S&OP implementation. Once the S&OP process has been completed, the executive S&OP meeting approves the final production plan, which is the output of the supply planning step. The production plan is a statement of the resources needed to meet the aggregate demand plan over a medium- term horizon. The functional responsibility of operations is to meet the revised production plan by developing and executing the master production schedule (MPS) and the detailed schedules. The MPS is a statement of the specific end items to be produced in each time period of the short-term horizon. The detailed schedules are the statements of the specific materials, resources, and activities needed to execute the MPS.


Reference:

CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.1: Develop Supply Plans, Subsection 4.1.2: Describe how to develop a production plan (page 36).



Which of the following inventory management techniques is most responsive to changes in demand levels?

  1. Two-bin system
  2. Periodic review system
  3. Cycle counting
  4. ABC classification

Answer(s): A

Explanation:

A two-bin system is a type of inventory management technique that uses two containers or bins to store and replenish items.
When the first bin is empty, the second bin is used to supply the demand while the first bin is reordered. A two-bin system is most responsive to changes in demand levels because it triggers replenishment orders based on actual consumption rather than fixed time intervals or reorder points. A two-bin system can reduce stockouts, improve service levels, and lower inventory costs.


Reference:

CPIM Exam Content Manual Version 7.0, Domain 5: Plan and Manage Inventory, Section 5.2: Implement Inventory Plans, Subsection 5.2.3: Describe how to implement inventory replenishment techniques (page 46).



Which of the following activities will enhance a successful supplier customer lean relationship?

  1. The supplier offers quantity discounts on material purchased.
  2. Returnable containers are used for material transport.
  3. Communication between the counterparts at the two companies is studied and improved.
  4. Consignment inventories are maintained in anticipation of customer need.

Answer(s): C

Explanation:

A lean relationship is a type of supplier-customer relationship that focuses on eliminating waste, improving quality, and reducing costs throughout the supply chain. A lean relationship requires a high level of collaboration, trust, and transparency between the supplier and the customer. Communication between the counterparts at the two companies is an essential activity that will enhance a successful lean relationship. Communication can help to align the goals, expectations, and performance measures of the supplier and the customer, as well as to identify and resolve any issues or problems that may arise. Communication can also facilitate information sharing, feedback, and continuous improvement initiatives.


Reference:

CPIM Exam Content Manual Version 7.0, Domain 7:
Plan and Manage Distribution, Section 7.1: Develop Distribution Plans, Subsection 7.1.3: Describe how to develop supplier-customer relationships (page 66).



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