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NO.1 Which of the following situations requires the largest amount of safety stock based on
demand variability and replenishment lead time?
A. Low variability, long replenishment lead time.
B. High variability, long replenishment lead time.
C. Low variability, short replenishment lead time.
D. High variability, short replenishment lead time.
Answer: B
NO.2 A manufacturer’s market is highly dependent upon customers selecting standard options at the
time of placing an order. Which of the following manufacturing strategies is best suited to compete in
this market?
A. Assemble-to-order
B. Make-to-order
C. Make-to-stock
D. Engineer-to-order
Answer: A
CPIM-BSP Real Questions
NO.3 As a company moves from domestic to global distribution, it becomes increasingly critical to
control which of the following distribution costs?
A. Protective packaging
B. Warehousing
C. Material handling
D. Transportation
Answer: D
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