CPIM Practice Exam

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Prepare for the CPIM Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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If the opening inventory is 100 units, sales are 500 units, and the ending inventory is 200 units, how many units will manufacturing produce?

300 units
400 units
500 units
600 units

The correct answer is: 600 units

To determine the number of units that manufacturing will produce, it's essential to understand the relationship between opening inventory, sales, ending inventory, and production. We can use the following formula to calculate production: **Production = (Ending Inventory + Sales) - Opening Inventory** In this scenario, you have: - Opening Inventory = 100 units - Sales = 500 units - Ending Inventory = 200 units Now, applying the values: **Production = (200 + 500) - 100** First, add the ending inventory to sales: **200 + 500 = 700** Next, subtract the opening inventory: **700 - 100 = 600 units** This means that manufacturing must produce 600 units to meet the sales demand while ensuring that the ending inventory requirement is met. Therefore, the answer of 600 units reflects the calculations based on the inventory and sales data provided. This understanding is crucial for anyone preparing for the CPIM exam, as it focuses on the fundamental aspects of inventory management and production planning.