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APICS CPIM-8.0 Dumps

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Total 150 questions

Certified in Planning and Inventory Management (CPIM 8.0) Questions and Answers

Question 1

A logistics manager Is faced with delivering an order via rail or truck. Shipping via rail costs S300 and takes 14 days. Shipping via truck costs $600 and takes 3 days. If the holding cost is $40 per day, what is the cost to deliver the order?

Options:

A.

$340for rail,$600 for truck

B.

$340for rail.$720 for truck

C.

$860for rail,$720 for truck

D.

$860for rail.$600 for truck

Question 2

Which of the following actions will result In lower inventory levels?

Options:

A.

Level load the master production schedule (MPS).

B.

Reduce replenishment lead times.

C.

Increase customer service level.

D.

Decentralize inventory locations.

Question 3

Which of the following items does the master scheduler have the authority to change in the master scheduling process?

Options:

A.

Product mix

B.

Aggregate volume

C.

Engineering change effectivity date

D.

Customer order quantities

Question 4

A company selling seasonal products is preparing their sales and operations plan for the coming year. Their current labor staffing is at the maximum for their production facility and cannot meet the forecasted demand. The business plan shows they do not have the financial capability to add to the production facility. Which of the following actions would be most appropriate?

Options:

A.

Uselevel production planning and investigate subcontracting to meet the extra demand.

B.

Usechaseproduction planningand only take the orders that can be produced In the highdemand season.

C.

Usehybridproduction planningto save labor costs and inventory costs in the low demand season.

D.

Usehybridproduction planningand reduce the size of the customer base during the highdemand season.

Question 5

Which of the following stock location systems would you use in a repetitive manufacturing, lean environment?

Options:

A.

Fixed location

B.

Floating location

C.

Point-of-use storage

D.

Central storage

Question 6

Substituting capital equipment in place of direct labor can be economically Justified for which of the following scenarios?

Options:

A.

Volumes are forecasted to increase

B.

Material prices are forecasted to increase

C.

Implementing a pull system in production

D.

Functional layouts are being utilized

Question 7

Which of the following tools shows process changes and random variation over time?

Options:

A.

Check sheet

B.

Control chart

C.

Histogram

D.

Pareto analysis

Question 8

Which of the following factors typically would distort a sales forecast that is based solely on shipment history?

Options:

A.

Material shortages

B.

Labor rate changes

C.

Currency exchange rates

D.

Customer demands

Question 9

The trade-off of increasing safety stock to improve customer fill rate would be a decrease in:

Options:

A.

pipeline inventory.

B.

transportation costs.

C.

inventory turns.

D.

sales revenue.

Question 10

In which of the following situations would you use an X-bar chart?

Options:

A.

Track the number of defects that are found in each unit.

B.

Measure the difference between the largest and the smallest in a sample.

C.

Determine the average value of a group of units.

D.

Estimate a subgroup variation.

Question 11

Global outsourcing and shared suppliers serving an industry are drivers of which category of risk?

Options:

A.

Supply disruptions

B.

Forecast inaccuracy

C.

Procurement problems

D.

Loss of intellectual property

Question 12

Given the information below, reducing which measure by 10% would contribute most to shortening the cash-to-cash cycle time?

as

Options:

A.

Accounts receivable

B.

Inventory value

C.

Accounts payable

D.

Cost of capital

Question 13

Which of the following factors is used to determine safety stock?

Options:

A.

Number of customers

B.

Available capacity

C.

Forecast error distribution

D.

Time between customer orders

Question 14

The question below is based on the following information:

Beginning inventory = 43Week 1Week 2Week 3

Forecast202020

Customer orders221710

Projected on-hand

Master production schedule (MPS)80

Available-to-promise (ATP)

What is the largest customer order that could be accepted for delivery at the end of week 3 without making changes to the master production schedule (MPS)?

Options:

A.

74

B.

63

C.

61

D.

31

Question 15

Based on the values reported in the table below, what is the inventory turnover?

as

Options:

A.

0.50

B.

0.58

C.

1.73

D.

2.60

Question 16

Price negotiation is most appropriate when purchasing which of the following product categories?

Options:

A.

Commodities

B.

Standard products

C.

Items of small value

D.

Made-to-order (MTO) items

Question 17

In the design and development of a manufacturing process, process engineers would most likely be responsible for decisions relating to:

Options:

A.

lead times.

B.

production capacity.

C.

product reliability.

D.

routing sequences.

Question 18

In Company XYZ, transaction-costing capability has been Integrated into the shop floor reporting system. A batch of 20 units was started in production. At the fourth operation, 20 units are reported as complete. At the fifth operation, 25 units are reported as complete. When all operations are complete, 20 units are checked into the stockroom. If the error at the fifth operation is undetected, which of the following conditions will be true?

Options:

A.

Stockroom inventory balance will be incorrect.

B.

Operator efficiency for the fifth operation will be overstated.

C.

Units in process will be understated.

D.

Work-in-process (WIP) cost will be understated.

Question 19

A statistical safety stock calculation would be appropriate for:

Options:

A.

components used in multiple end items.

B.

new products at time of introduction.

C.

end items with stable demand.

D.

supply-constrained raw materials.

Question 20

Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?

Options:

A.

Decreased fixed assets

B.

Decreased retained earnings

C.

Increased accounts receivable

D.

Increased intangible assets

Question 21

Which of the following outcomes Is a benefit of mixed-model scheduling?

Options:

A.

Increased inventory

B.

Improved demand response

C.

Fewer setups

D.

Fewer material shortages

Question 22

The question below is based on the following information:

as

Work Center 1 has an available capacity of 1,200 hours per month. Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Months 1 through 3?

Options:

A.

50

B.

150

C.

1.250

D.

3.750

Question 23

Which of the following is the fundamental difference between finite loading and other capacity planning approaches?

Options:

A.

It is highly dependent on advanced computer software to function effectively.

B.

It is only managed by shop floor supervisors.

C.

It can use historical information to drive decision-making processes.

D.

It considers adjustments to plans based on planned capacity utilization.

Question 24

Which of the following measurements indicates there may be bias In the forecast model?

Options:

A.

Mean absolute deviation (MAD)

B.

Standard deviation

C.

Tracking signal

D.

Variance

Question 25

An effective approach to projecting requirements for materials with long lead times Includes which of the following options?

Options:

A.

Initiate a multilevel master schedule.

B.

Use phantom bills of materials (BOMs).

C.

Increase the level of safety stock.

D.

Decrease the planning horizon.

Question 26

When starting an external benchmarking study, a firm must first:

Options:

A.

determine the metrics which will be measured and compared.

B.

identify the target firms with which to benchmark against.

C.

understand its own processes and document performance.

D.

determine its areas of weakness versus the competition's.

Question 27

Exhibit:

as

A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

Options:

A.

100% service levels for B and C

B.

Customer B has higher service level

C.

Customer C has higher service level

D.

Customer B and C have same service level

Question 28

Components of an organization's Immediate industry and competitive environment Include:

Options:

A.

political factors.

B.

interest rates.

C.

substitute products.

D.

sociocultural forces.

Question 29

Which of the following circumstances would cause a move from acceptance sampling to 100% inspection?

Options:

A.

History shows that the quality level has been stable from lot to lot.

B.

The company uses one of its qualified suppliers.

C.

Downstream operators encounter recurring defects.

D.

The percent of defects is expected to be greater than 5%.

Question 30

Which of the following methods would be appropriate for forecasting the demand for a product family when there is a significant trend and seasonality in the demand history?

Options:

A.

Econometric models

B.

Computer simulation

C.

Time series decomposition

D.

Weighted moving average

Question 31

Which of the following capacity planning methods uses the master production schedule (MPS) as its primary input?

Options:

A.

Resource planning

B.

Rough-cut capacity planning (RCCP)

C.

Finite loading

D.

Input/output analysis

Question 32

The horizon for forecasts that are input to the sales and operations planning (S&OP) process should be long enough that:

Options:

A.

cumulative forecast deviation approaches zero.

B.

planned product launches can be incorporated.

C.

required resources can be properly planned.

D.

supply constraints can be resolved.

Question 33

Moving average forecasting methods are best when demand shows:

Options:

A.

a clear trend.

B.

high random variation.

C.

consistent seasonality.

D.

a cyclical pattern.

Question 34

Forecast error typically triggers forecast revision when it is:

Options:

A.

used in computing the tracking signal.

B.

associated with the Introduction stage of the product life cycle.

C.

continually increasing.

D.

caused by random variation.

Question 35

Reducing distribution network inventory days of supply will have which of the following Impacts?

Options:

A.

Increase turnovers and increase cash-to-cash cycle time.

B.

Increase turnovers and reduce cash-to-cash cycle time.

C.

Decrease turnovers and reduce cash-to-cash cycle time.

D.

Decrease turnovers and increase cash-to-cash cycle time.

Question 36

The demand for an item has increasing forecast error, whereas all other factors remain constant. Which of the following remains constant while maintaining the same customer service level?

Options:

A.

Reorder point(ROP)

B.

Safety stock

C.

Inventory investment

D.

Safety factor

Question 37

Management should support investments in new process technologies that:

Options:

A.

require minimal changes in existing systems, procedures, and skills.

B.

have been recommended by technical experts and equipment suppliers.

C.

provide significant cost-reduction opportunities for the company's current products.

D.

provide long-term competitive advantage with acceptable financial risk.

Question 38

Under which of the following conditions is excess capacity most likely a good substitute for safety stock?

Options:

A.

The cost of excess capacity is less than the cost of an additional unit of safety stock in the same period.

B.

The cost to maintain one unit in inventory for a year is less than the direct labor cost.

C.

The service level with safety stock is more than the service level with excess capacity.

D.

Lead time for the product is longer than customers are willing to wait.

Question 39

What priority control technique is most appropriate for a firm using a cellular production system?

Options:

A.

Shortest processing time (SPT) rule

B.

Distribution requirements planning (DRP)

C.

Pull production activity control (PAC)

D.

Push production activity control (PAC)

Question 40

Which of the following systems would be the most cost-efficient for inventory management of a low value item?

Options:

A.

Order point

B.

Material requirements planning (MRP)

C.

Periodic review

D.

Economic order quantity(EOQ)

Question 41

One of the benefits of Integrating a poka-yoke into the production process is that it can be used to:

Options:

A.

facilitate mixed-model scheduling.

B.

prevent defects.

C.

Improve machine utilization.

D.

enable one-piece flow.

Question 42

A company can easily change Its workforce, but inventory carrying costs are high. Which of the following strategies would be most appropriate during times of highly fluctuating demand?

Options:

A.

Produceto backorders

B.

Produceat a constant level

C.

Produceto the sales forecast

D.

Produceto demand

Question 43

The production plan relates to a firm's financial planning because it is used to:

Options:

A.

calculate standard product costs.

B.

determine variable costs.

C.

project payroll costs.

D.

identify future cash needs.

Question 44

Which of the following strategies is most appropriate for a business unit with a low relative market share in a high-growth market?

Options:

A.

Using excess cash generated to fund other business units

B.

Investing in the acquisition of competitors

C.

Investing in projects to maintain market share

D.

Designing product improvements to protect market share

Question 45

Fishbone diagrams would help a service organization determine:

Options:

A.

the proper level of service for a customer segment.

B.

the source of a quality-of-service issue.

C.

differences in the performance of employees.

D.

the decomposition of customer return rates with seasonality.

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Total 150 questions