CPIM Practice Test 11

10 free CPIM practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

CPIM Practice Test 11Tutor mode

Question 1 of 10

Plan and Manage Inventory

An item costs $25.00 per unit and is ordered in fixed lots of 800 units, with 150 units of safety stock. The annual carrying cost rate is built from capital cost 10%, storage 4%, insurance and taxes 2%, and obsolescence and shrinkage 6%. Assuming steady usage, what is the annual carrying cost for this item?