CPIM Practice Questions (2026) — Free Sample Questions with Answers

Answer: B

1. Daily COGS = $7,300,000 ÷ 365 = $20,000. Daily sales = $10,950,000 ÷ 365 = $30,000.
2. Days of inventory = $1,000,000 ÷ $20,000 = 50 days.
3. Days of receivables = $1,200,000 ÷ $30,000 = 40 days.
4. Days of payables = $600,000 ÷ $20,000 = 30 days.
5. Cash-to-cash = 50 + 40 − 30 = 60 days.

43 days: Computes inventory days on sales ($30,000/day) instead of COGS.

60 days: Correct. Cash-to-cash cycle time (ECM I.D, financial KPIs) = days of inventory + days of receivables − days of payables = 50 + 40 − 30 = 60 days.

70 days: Computes payables days on sales instead of COGS (20 days).

120 days: Adds days of payables instead of subtracting them.

Cash-to-cash cycle time = inventory days + receivables days − payables days; it measures how long cash is tied up between paying suppliers and collecting from customers.

Answer: B

At finished-goods inventory: Make-to-stock boundary; these pumps are not built before the order.

At stocked subassemblies: Correct. In assemble-to-order (ECM I.A, push-pull boundary), components and subassemblies are pushed to stock on forecast and final assembly is pulled by the customer order, so the boundary sits at the subassembly stock.

At raw material before fabrication: Make-to-order boundary; housings, motors, impellers and seals are already built to stock.

At the product design stage: Engineer-to-order boundary; the configurations are standard choices, not new designs.

The push-pull boundary is the inventory point where forecast-driven (push) work ends and order-driven (pull) work begins; in ATO it is the stocked component or subassembly level.

Answer: C

1. Total forecast = 900 + 1,000 + 1,100 + 1,200 + 1,000 + 800 = 6,000 units.
2. Total production needed = 6,000 + 500 (ending) − 200 (beginning) = 6,300 units.
3. Level rate = 6,300 ÷ 6 = 1,050 units per month.

967 units per month: Subtracts beginning inventory but leaves out the 500-unit ending target.

1,000 units per month: Averages the forecast and ignores the inventory change.

1,050 units per month: Correct. Level plan (ECM II.C): (total forecast + ending inventory − beginning inventory) ÷ periods = (6,000 + 500 − 200) ÷ 6 = 1,050 units.

1,117 units per month: Adds beginning inventory instead of subtracting it.

MTS level production = (total forecast + desired ending inventory − beginning inventory) ÷ number of periods.

Answer: A

Share retail POS data with all upstream tiers: Correct. Bullwhip effect (ECM III-E): sharing end-customer demand lets each tier plan from real consumption instead of reacting to amplified orders.

Increase finished goods safety stock at the plant: More safety stock absorbs the variability but does not reduce the amplification that causes it.

Offer quarter-end volume discounts to distributors: Discounts encourage forward buying and order spikes, which worsen the bullwhip effect.

Encourage distributors to order in full truckloads: Larger, less frequent orders are order batching, one of the main causes of the bullwhip effect.

Bullwhip is driven by distorted demand signals, order batching, price swings, and shortage gaming; sharing true demand data attacks the root cause.

Answer: D

1. Most recent three months: April 460, March 420, February 440.
2. April: 0.5 × 460 = 230.
3. March: 0.3 × 420 = 126.
4. February: 0.2 × 440 = 88.
5. Sum: 230 + 126 + 88 = 444. The May forecast is 444 units.

430 units: Simple average of all four months, with no weights.

438 units: Weights applied in reverse: 0.5 on February and 0.2 on April.

440 units: Simple three-month moving average instead of the weighted average.

444 units: Correct. Weighted moving average (ECM III-D): 0.5 × 460 + 0.3 × 420 + 0.2 × 440 = 444 units.

A weighted moving average multiplies each recent period by its weight (weights sum to 1), with the largest weight on the most recent period.

Answer: C

1. Available on hand = 60 − 10 allocated = 50.
2. Period 1: 50 − 30 = 20 (equals safety stock, no requirement).
3. Period 2: 20 + 50 scheduled receipt − 40 = 30.
4. Period 3: 30 − 45 = −15; net requirement = 45 + 20 safety stock − 30 = 35.
5. Completed record: projected available 20, 30, 20, 20, 20, 20; net requirements 0, 0, 35, 35, 50, 25.
6. Net requirement in Period 3 = 35 units.

15 units: Ignores the 20-unit safety stock; MRP nets to keep projected available at or above safety stock.

25 units: Ignores the 10 allocated units, which are already committed and not available to net.

35 units: Correct. Available = 60 − 10 = 50. Period 1: 20; Period 2: 20 + 50 − 40 = 30; Period 3: 30 − 45 = −15, so the net requirement to restore 20 units of safety stock is 35 units.

45 units: Ignores the Period 2 scheduled receipt of 50 units.

Net requirement = gross requirements + safety stock + allocations − on hand − scheduled receipts, computed period by period.

Answer: D

Promise all 300 units against forecast: Promising beyond ATP takes units already committed to other customers or unsupported by the MPS.

Book the order as a full backorder: Ignores the 180 units that can be promised now and the chance that CTP finds more.

Raise the week 6 forecast to 300: Changing the forecast does not create supply; it only changes the demand plan.

Run a capable-to-promise (CTP) check: Correct. CTP tests whether added material and capacity can support the extra 120 units by week 6 before a commitment is made.

ATP checks uncommitted MPS supply; CTP goes further and checks whether material and capacity can support a new or larger commitment.

Answer: A

1. Next MPS receipt after Period 3 is in Period 5, so Period 3 ATP covers orders in Periods 3–4.
2. Customer orders in Periods 3–4 = 35 + 30 = 65.
3. ATP Period 3 = 80 − 65 = 15 units.

15 units: Correct. Discrete ATP for Period 3 = MPS 80 − customer orders in Periods 3 and 4 (35 + 30) = 15 units, because the next MPS receipt is in Period 5.

40 units: Subtracts the Period 3 forecast (40) instead of the customer orders booked against the MPS lot.

45 units: Subtracts only the Period 3 orders; discrete ATP covers all orders until the next MPS receipt.

55 units: Cumulative ATP (40 carried from Period 1 + 15); the stem asks for the discrete method.

Discrete ATP = MPS quantity − customer orders until the next MPS receipt; on hand is added only in the first period.

Answer: A

1. Supplier K: 0.35 × 9 + 0.30 × 6 + 0.25 × 7 + 0.10 × 8 = 3.15 + 1.80 + 1.75 + 0.80 = 7.50.
2. Supplier L: 0.35 × 7 + 0.30 × 9 + 0.25 × 8 + 0.10 × 6 = 2.45 + 2.70 + 2.00 + 0.60 = 7.75.
3. Supplier M: 0.35 × 8 + 0.30 × 8 + 0.25 × 6 + 0.10 × 9 = 2.80 + 2.40 + 1.50 + 0.90 = 7.60.
4. Supplier N: 0.35 × 6 + 0.30 × 7 + 0.25 × 10 + 0.10 × 7 = 2.10 + 2.10 + 2.50 + 0.70 = 7.40.
5. Highest weighted score: Supplier L at 7.75.

Supplier L: Correct. Weighted scores (ECM V.B, supplier scorecards): K 7.50, L 7.75, M 7.60, N 7.40, so Supplier L ranks first.

Supplier K: Supplier K has the best score on the heaviest criterion (quality), but its weighted total is only 7.50.

Supplier M: Supplier M has the highest unweighted total (31), but weighting gives it 7.60, below L.

Supplier N: Supplier N has the best cost score, but cost carries only 25% and its weighted total is 7.40.

Rank suppliers on the weighted sum, not on raw totals or on the single most important criterion.

Answer: A

Friendshoring: Correct. Friendshoring (ECM V.A) shifts supply to countries with aligned political and trade relationships to lower geopolitical risk, regardless of distance.

Nearshoring: Nearshoring moves supply to a geographically close country; the new country here is distant.

Reshoring: Reshoring returns production to the home country, which this move does not do.

Offshoring: Offshoring describes the original move abroad for lower cost; the new choice is driven by alliance, not cost.

Friendshoring is selected by geopolitical alignment; nearshoring by proximity; reshoring by return to the home country.

Answer: B

1. Average weekly demand = 6,240 ÷ 52 = 120 units.
2. POQ interval = EOQ ÷ average weekly demand = 360 ÷ 120 = 3 weeks.
3. The Week 1 order covers the net requirements of Weeks 1, 2 and 3.
4. Planned order receipt in Week 1 = 110 + 140 + 90 = 340 units.

110 units: Lot-for-lot (L4L) quantity for Week 1 only; POQ combines the net requirements of several weeks.

340 units: Correct. POQ (ECM VI.B, lot sizing): average weekly demand is 6,240 ÷ 52 = 120, so the interval is 360 ÷ 120 = 3 weeks; the order covers Weeks 1–3: 110 + 140 + 90 = 340 units.

360 units: Orders the EOQ as a fixed order quantity; POQ orders the actual net requirements of the interval.

490 units: Covers four weeks (Weeks 1–4) instead of the 3-week interval.

POQ = EOQ ÷ average demand per period, rounded to whole periods; each order covers the actual net requirements for that many periods, so quantities vary while the interval stays fixed.

Answer: D

Lower outbound freight cost to customers: Reversed trade-off; shipping from one central site increases average distance and usually raises outbound freight cost.

Higher total safety stock in the network: Reverses the pooling effect; combining independent regional demand reduces total variability and safety stock.

Shorter delivery lead times to customers: A benefit of decentralized stock close to customers, not of a single central site.

Lower total safety stock at the same service level: Correct. Centralizing inventory (ECM VI.A) pools regional demand variability, so less total safety stock is needed for the same service level (risk pooling).

Centralized inventory pools demand variability and lowers total safety stock; decentralized inventory shortens customer lead time but needs more total safety stock and usually less outbound freight.

Answer: D

1. J-41: (112 − 100) ÷ 8 = 1.50.
2. J-42: (106 − 100) ÷ 10 = 0.60.
3. J-43: (109 − 100) ÷ 12 = 0.75.
4. J-44: (104 − 100) ÷ 4 = 1.00.
5. Sequence from lowest to highest ratio: J-42, J-43, J-44, J-41.

J-44, J-41, J-42, J-43: Shortest processing time sequence, not critical ratio.

J-44, J-42, J-43, J-41: Earliest due date sequence; it ignores how much work each job still needs.

J-41, J-44, J-43, J-42: Computes the ratio upside down (work ÷ time), which reverses the priority.

J-42, J-43, J-44, J-41: Correct. Critical ratios (time remaining ÷ work remaining) are J-42 0.60, J-43 0.75, J-44 1.00, J-41 1.50; the lowest ratio runs first.

Critical ratio = (due date − today) ÷ work remaining; below 1.0 the job is behind schedule, and the lowest ratio gets top priority.

Answer: B

1. Week 1: 180 − 80 = 100.
2. Week 2: 100 + 200 (in transit) − 80 = 220.
3. Week 3: 220 − 90 = 130.
4. Week 4: 130 − 90 = 40, below the 50-unit safety stock, so plan a receipt of 200: 240.
5. Week 5: 240 − 100 = 140.
6. Week 6: 140 − 100 = 40, below safety stock, so plan a receipt of 200: 240.
7. Offset the Week 4 and Week 6 receipts by the 2-week lead time: release 200 in Week 2 and 200 in Week 4.

200 in Week 3 only: Ignores the 50-unit safety stock, so the first shortage appears only in Week 5.

200 in Week 2, 200 in Week 4: Correct. DRP time-phased logic (ECM VIII-A): projected available falls below 50 units of safety stock in Weeks 4 and 6, so receipts are planned there and released 2 weeks earlier.

200 in Week 3, 200 in Week 5: Offsets the receipts by 1 week instead of the 2-week lead time.

200 in Week 4, 200 in Week 6: These are the planned order receipt weeks, not the release weeks.

DRP uses MRP netting at each stocking location: plan a receipt when projected available would fall below safety stock, then offset by the replenishment lead time.

Answer: A

1. Availability = (480 − 60) ÷ 480 = 420 ÷ 480 = 0.875.
2. Performance = (720 units × 0.5 minute) ÷ 420 minutes = 360 ÷ 420 ≈ 0.857.
3. Quality = 684 ÷ 720 = 0.95.
4. OEE = 0.875 × 0.857 × 0.95 ≈ 0.7125 (check: 684 × 0.5 ÷ 480 = 0.7125).
5. OEE ≈ 71%.

71%: Correct. OEE (ECM IX.B, TPM) = availability × performance × quality = 0.875 × 0.857 × 0.95 ≈ 0.71, or 71%.

75%: Multiplies availability by performance only; ignores the quality loss from 36 defective units.

81%: Multiplies performance by quality only; ignores the 60 minutes of downtime.

89%: Averages the three factors instead of multiplying them.

OEE multiplies availability, performance and quality; equivalently, good units × ideal cycle time ÷ planned production time.