CPIM Practice Exam

What does a where-used list indicate?

1. The customers who have purchased a particular item.

2. Every parent item that requires a specific component.

3. The total inventory levels of each material.

4. Production schedules for the upcoming weeks.

The correct answer is: Every parent item that requires a specific component.

A where-used list is a critical component in inventory and production management, especially in manufacturing settings. It provides a detailed overview of every parent item or finished product that requires a specific component for its assembly or production. By identifying which parent items utilize a specific component, businesses can optimize inventory management, planning, and procurement processes. For example, if a particular part is in high demand across multiple products, understanding the relationships reflected in the where-used list allows a company to forecast needs more accurately, managing supply chain issues more effectively. This visibility can help prevent stockouts or overstock situations, as it clarifies how important a particular component is to overall production schedules. The other options focus on different areas of business not related to the specific relationship between components and parent items. Knowing customer purchasing behavior, total inventory levels, or production schedules pertains to different aspects of operations and does not capture the essence of what a where-used list provides.