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Free Certified in Planning and Inventory Management (CPIM) Exam Questions and Answers

Last updated: March 30, 2025

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Certified in Planning and Inventory Management (CPIM)

#Question
What should a company consider first when revisiting its inventory management policies?
A.
Historical trends
B.
Current demand patterns
C.
Employee satisfaction
D.
Supplier contracts
Correct Answer: B
Reassessing current demand patterns is critical when revisiting inventory management policies to ensure alignment with market needs.

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#Question
What is the consequence of inaccurate inventory records?
A.
Reduced purchase frequency
B.
Efficient order processing
C.
Buildup of slow-moving goods
D.
Increased customer trust
Correct Answer: C
Inaccurate inventory records can lead to a buildup of slow-moving goods, as stock levels may not reflect actual demand.

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#Question
What type of demand would be characterized as independent in nature?
A.
Erratic demand
B.
Production demand
C.
Seasonal demand
D.
Aggregate demand
Correct Answer: D
Independent demand refers to demand that is not directly tied to another product, common with finished goods.

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#Question
What does an inventory turnover ratio of 1.5 indicate?
A.
Overpriced goods
B.
Frequent stockouts
C.
Moderate sales compared to inventory levels
D.
High inventory levels
Correct Answer: C
An inventory turnover ratio of 1.5 indicates moderate sales in relation to inventory levels, suggesting room for improvement.

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#Question
What is an essential function of a distribution center in inventory management?
A.
Storing excess stock
B.
Accepting returns
C.
Only shipping products
D.
Efficient order fulfillment
Correct Answer: D
The essential function of a distribution center is to ensure efficient order fulfillment, facilitating timely deliveries to customers.

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#Question
How can segmenting inventory impact management efforts?
A.
Minimizes costs
B.
Reduces visibility
C.
Lowers service levels
D.
Increases complexity
Correct Answer: A
Segmenting inventory allows for more tailored management efforts that can minimize costs and improve service levels.

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#Question
What role does data analytics play in modern inventory management?
A.
It enhances storage techniques
B.
It provides insights for optimization
C.
It increases manual processes
D.
It complicates decision-making
Correct Answer: B
Data analytics provides insights that help optimize inventory management practices, improving overall efficiency.

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