CPIM Practice Exam

What does a "split lot" refer to in manufacturing?

1. A single manufacturing order divided into smaller quantities

2. A resource that has been reallocated for efficiency

3. A method for increasing inventory levels

4. Remaining inventory after a manufacturing batch

The correct answer is: A single manufacturing order divided into smaller quantities

A "split lot" refers to a single manufacturing order that has been divided into smaller quantities. This practice is often utilized to optimize production processes or manage capacity limits on manufacturing equipment. By splitting a lot, manufacturers can accommodate varying demand, streamline workflows, or enhance quality control measures on smaller subsets of production. This approach allows for more flexibility in scheduling, as it can ease the management of inventory and help fulfill orders more efficiently. The other options do not accurately capture the concept of a "split lot." For instance, reallocating resources for efficiency pertains more to resource management rather than the division of manufacturing orders. Increasing inventory levels is a distinct process involving stock management strategies, not the division of existing orders. Additionally, the term does not involve remaining inventory from a manufacturing batch; it specifically describes the action of dividing a single order into smaller production quantities.