CPIM Practice Exam

Where else might inventory be stored in a production system?

1. Before and after operation E only.

2. At the raw materials before operation A and after operation E only.

3. At the raw materials before operation A and before operation E only.

4. At the raw materials before operation A and before and after operation E.

The correct answer is: At the raw materials before operation A and before and after operation E.

In a production system, inventory can indeed be stored at various points to ensure smooth operations and to manage workflow efficiently. The correct choice highlights the significance of inventory management at multiple stages in the manufacturing process. When considering the flow of materials through production, storing inventory at the raw materials stage before operation A serves as a buffer to prevent delays in production due to material shortages. Additionally, having inventory before and after operation E is crucial because it allows for flexibility. This means that in case of any unforeseen disruptions during operation E, there is still a sufficient amount of inventory available both to feed into the operation and to allow for output to be collected. Having inventory strategically placed ensures that there is a continuous flow of work, which minimizes idle time and maximizes efficiency. It also allows for an easier response to fluctuations in demand or changes in production schedules. The other choices mention more limited locations for inventory storage, which can lead to potential bottlenecks, reduced responsiveness to demand, and inefficiencies in the production process. Not having inventory after operation E can be risky because, if any accounting or quality checks are necessary before the product is shipped or moved to the next step, the flow could be disrupted without those safety stock levels. Thus, the holistic approach to inventory storage