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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Which component is subtracted from gross requirements to determine net requirements?

  1. Planned order receipts

  2. Available inventory

  3. Scheduled receipts

  4. Safety stock

The correct answer is: Scheduled receipts

To determine net requirements in inventory management, available inventory is subtracted from gross requirements. Gross requirements represent the total demand for an item, while available inventory consists of the stock that is currently on hand and can be used to fulfill that demand. By subtracting available inventory from gross requirements, you are determining how much more inventory is needed to meet the demand after accounting for what is already available. This calculation helps in understanding shortages that need to be addressed through production or procurement activities. The other components, such as planned order receipts and scheduled receipts, refer to future inventory that is not yet available but is expected to be received, and safety stock is a buffer against variability in demand or supply, rather than an immediate inventory that can be subtracted from requirements.

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