CPIM Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 940

Which of the following typically signifies a lack of inventory accuracy?

The on-hand quantity significantly differs from recorded balance

The selection indicates that a significant discrepancy between the on-hand quantity and the recorded balance represents a clear sign of inventory inaccuracies. This scenario highlights a breakdown in the inventory management system or processes, where the physical count of inventory does not match what is documented in the inventory records. Such discrepancies can lead to ineffective decision-making regarding stock levels, order placements, and overall supply chain management.

In contrast, consistently being understocked may reflect issues with forecasting or demand planning rather than inventory inaccuracies. Receiving items before the scheduled review period could imply efficient supply chain practices rather than issues with inventory records. Proper real-time accounting of all inventory would actually signify a high level of accuracy and control in inventory management.

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The warehouse is consistently understocked

Items are delivered before the scheduled review period

All inventory is accounted for in real-time

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