CPIM-8.0 Questions Pass on Your First Attempt Dumps for Certified Production and Inventory Management Certified
CPIM-8.0 Practice Test Pdf Exam Material
NEW QUESTION # 42
Which of the following items does the master scheduler have the authority to change in the master scheduling process?
- A. Aggregate volume
- B. Engineering change effectivity date
- C. Product mix
- D. Customer order quantities
Answer: C
Explanation:
The master scheduler has the authority to change the product mix in the master scheduling process. The product mix is the combination and proportion of different products or product families that the company offers to its customers. The master scheduler can adjust the product mix based on the customer demand, the production capacity, the inventory levels, and the strategic objectives of the company. The master scheduler can also use the product mix to balance the demand and supply, to optimize the resource utilization, and to maximize the profitability. The other options are not correct, as they are items that the master scheduler does not have the authority to change in the master scheduling process, but rather inputs or constraints that the master scheduler has to follow or consider:
Aggregate volume is the total quantity of products or product families that the company plans to produce and deliver in a given period. Aggregate volume is determined by the sales and operations planning (S&OP) process, which involves the senior management and the functional managers of the company. The master scheduler has to align the master production schedule (MPS) with the aggregate volume, and cannot change it without the approval of the S&OP team.
Engineering change effectivity date is the date when a change in the design or specification of a product or a component becomes effective. Engineering change effectivity date is determined by the engineering department, which is responsible for the product development and innovation. The master scheduler has to incorporate the engineering change effectivity date into the MPS, and cannot change it without the approval of the engineering department.
Customer order quantities are the amounts of products or product families that the customers order from the company. Customer order quantities are determined by the market demand and the customer preferences. The master scheduler has to satisfy the customer order quantities as much as possible, and cannot change them without the approval of the customers or the sales and marketing department.
References:
[CPIM Part 2 - Section A - Topic 1 - Sales and Operations Planning]
Master Production Schedule (MPS)
Product Mix
Aggregate Planning
Engineering Change Management
Customer Order Management
NEW QUESTION # 43
Which of the following factors typically would distort a sales forecast that is based solely on shipment history?
- A. Customer demands
- B. Material shortages
- C. Labor rate changes
- D. Currency exchange rates
Answer: A
Explanation:
A sales forecast that is based solely on shipment history assumes that the past demand patterns will continue in the future. However, this assumption may not be valid if there are factors that affect the customer demand that are not captured by the shipment history. For example, customer demands may change due to seasonality, promotions, new product introductions, competitor actions, economic conditions, or other external influences.
These factors may distort the sales forecast that is based solely on shipment history and cause it to be inaccurate or unreliable. The other options are not factors that typically distort a sales forecast that is based solely on shipment history, as they do not directly affect the customer demand. Material shortages, labor rate changes, and currency exchange rates may affect the supply side of the business, but they do not necessarily reflect the customer preferences or needs. References:
CPIM Part 2 Exam Content Manual, p. 29
Sales Forecast: Complete Guide to Sales Forecasting in [2023]
The Complete Guide to Building a Sales Forecast | Salesforce
NEW QUESTION # 44
We have observed the inventory system does not handle plastic parts well." What should be added to the problem statement to make it more useful?
- A. Guidance to which problem-solving tools should be used
- B. Criteria for selecting the improvement team
- C. Description of who is responsible for the problem
- D. Measurements that help describe the problem
Answer: D
Explanation:
A problem statement is a concise description of an issue to be addressed or a condition to be improved upon. It identifies the gap between the current state and the desired state of a process or a system. A good problem statement should include measurements that help describe the problem, such as the magnitude, frequency, location, and impact of the problem. These measurements can help quantify the problem and provide a baseline for improvement. The other options are not essential for a problem statement, but rather for the subsequent steps of problem-solving, such as selecting tools, forming teams, and assigning responsibilities.
References:
*[CPIM Part 2 - Section B - Topic 1 - Quality and Continuous Improvement]
*How to Write a Problem Statement
NEW QUESTION # 45
A part is sold as a service part, and It is also used as a component In another part. Which of the following statements about the planning for this part is true?
- A. Its low-level code is zero.
- B. It shouldn't have any safety stock.
- C. The material requirements for the part will be understated.
- D. The service part demand can be included In the gross requirements.
Answer: D
Explanation:
The service part demand can be included in the gross requirements for the part. Gross requirements are the total demand for an item derived from all sources, such as customer orders, dependent demand, forecast, or safety stock. Service part demand is the demand for an item that is used to replace or repair a product after it has been sold to the customer. Service part demand is independent of the production of other items, and it can be forecasted based on historical data, warranty information, or customer contracts. Service part demand can be added to the gross requirements for the part, along with the dependent demand from the other part that uses it as a component.
Option A is not correct, because the low-level code of the part is not zero. Low-level code is the lowest level in the bill of material (BOM) at which an item appears as a component. An item that is not a component of any other item has a low-level code of zero. An item that is a component of another item has a low-level code equal to one plus the low-level code of the parent item. In this case, the part is a component of another part, so its low-level code is at least one.
Option B is not correct, because the material requirements for the part will not be understated. Material requirements are the net requirements for an item after deducting the available inventory and scheduled receipts from the gross requirements. If the service part demand is included in the gross requirements, the material requirements will reflect the true demand for the part. If the service part demand is not included, the material requirements will be understated, and the part may face stockouts or backorders.
Option D is not correct, because the part should have some safety stock. Safety stock is the extra inventory held to protect against uncertainties in demand, supply, or lead time. Safety stock can help reduce the risk of stockouts, improve customer service, and buffer against variability. The part should have some safety stock to account for the fluctuations in the service part demand, which may depend on factors such as product failure rate, customer behavior, or environmental conditions.
NEW QUESTION # 46
Exhibit:
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?
- A. Customer C has higher service level
- B. Customer B has higher service level
- C. 100% service levels for B and C
- D. Customer B and C have same service level
Answer: B
Explanation:
Customer service level is the percentage of customer orders that are fulfilled on time and in full1. A company that prioritizes customers A, B, and C, filling orders in that sequence, will have different impacts on the service levels for customers B and C, depending on the availability of stock and theorder quantities. Based on the table in the exhibit, customer B will have a higher service level than customer C, because customer B will receive all the ordered units for item 468 and item 617, while customer C will only receive partial units for item 468 and none for item 617. Customer C will also receive none of the ordered units for item 643, while customer B will receive some of them. Therefore, customer B will have a higher percentage of orders fulfilled on time and in full than customer C. References: 1 Customer Service Level: Definition, Standards, Measuring | SupportYourApp 2
NEW QUESTION # 47
Which of the following measurements indicates there may be bias In the forecast model?
- A. Standard deviation
- B. Tracking signal
- C. Variance
- D. Mean absolute deviation (MAD)
Answer: B
Explanation:
The tracking signal is a measurement that indicates there may be bias in the forecast model. The tracking signal is the ratio of the cumulative forecast error to the mean absolute deviation (MAD). It measures how well the forecast is tracking the actual demand over time. A tracking signal of zero means that the forecast is perfectly accurate. A tracking signal within the range of -4 to +4 is considered acceptable. A tracking signal outside this range indicates that the forecast is consistently overestimating or underestimating the demand, which implies that there is bias in the forecast model. Bias is the tendency of a forecast to be consistently higher or lower than the actual demand. Bias can be caused by factors such as inaccurate data, inappropriate forecasting methods, or changes in demand patterns. References:
Managing Supply Chain Operations, Chapter 5: Demand Management and Forecasting, Section 5.2:
Forecasting Methods, Subsection 5.2.3: Forecast Accuracy and Control
CPIM Exam Content Manual, Module 3: Demand, Section 3.2: Forecasting, Subsection 3.2.2:
Forecasting Methods, Subsubsection 3.2.2.3: Forecast Accuracy and Control
NEW QUESTION # 48
In which of the following phases of the product life cycle is product price most effective in influencing demand?
- A. Decline
- B. Introduction
- C. Growth
- D. Maturity
Answer: B
Explanation:
Product price is most effective in influencing demand in the introduction phase of the product life cycle, when the product is new and unfamiliar to the market. In this phase, customers are not aware of the product's benefits, features, or quality, and may be reluctant to try it. Therefore, a lower price can help attract customers and stimulate demand, as well as deter potential competitors from entering the market. A lower price can also help the product gain market share and establish a loyal customer base. As the product moves to the growth, maturity, and decline phases, price becomes less effective in influencing demand, as other factors, such as product differentiation, quality, promotion, and customer satisfaction, become more important. References:
*Product Life Cycle Explained: Stage and Examples
*The 6 Stages of the Product Life Cycle [+Examples]
*Product Life Cycle - Definition, Stages, Usage
NEW QUESTION # 49
Which of the following statements is true about the meantime between failures (MTBF) measure?
- A. An increase in MTBF is proportional to anincrease inquality.
- B. It is the same as operating life or service life.
- C. It is used for non-repairable products.
- D. It is a useful measure of reliability.
Answer: D
Explanation:
Mean time between failures (MTBF) is the average time that elapses from one unplanned breakdown to the next, under normal operating conditions. It is a useful measure of reliability because it indicates how long a repairable system typically operates before failing. Reliability is the absence of unplanned downtime, and MTBF measures how often a system stops performing as expected. The other statements are not true about MTBF. MTBF is not used for non-repairable products, as they cannot be fixed and put back into operation after a failure. For non-repairable products, mean time to failure (MTTF) is used as a measure of reliability.
MTBF is not proportional to quality, as quality is a broader concept that encompasses not only reliability, but also performance, durability, and customer satisfaction. MTBF is not the same as operating life or service life, as they referto the total time that a system can function before reaching the end of its useful life, while MTBF refers to the average time between failures within the operating life. References: Mean Time Between Failures (MTBF): How to Calculate & Increase, APICS CPIM 8 Planning and Inventory Management | ASCM
NEW QUESTION # 50
An example of a flexibility metric for an organization Is:
- A. average batch size.
- B. cycle time.
- C. scrap rate.
- D. percentageof orders delivered late.
Answer: B
Explanation:
A flexibility metric is a measure of how well an organization can adapt to changes in demand, supply, or technology. Flexibility metrics can be classified into three categories: volume flexibility, mix flexibility, and new product flexibility. Volume flexibility is the ability to adjust the output level to meet fluctuations in demand. Mix flexibility is the ability to produce different types of products or services with the same resources. New product flexibility is the ability to introduce new products or services quickly and efficiently.
Cycle time is an example of a flexibility metric, as it measures the time required to complete a process or activity, from start to finish. Cycle time can indicate the responsiveness and agility of an organization, as shorter cycle times imply faster delivery, lower inventory, and higher customer satisfaction. Cycle time can also reflect the efficiency and quality of an organization, as shorter cycle times imply less waste, fewer errors, and lower costs. Therefore, cycle time is a relevant metric for assessing the flexibility of an organization. References := CPIM Part 2 Exam Content Manual, Version 8.0, ASCM, 2021, p. 29. CPIM Part
2 Learning System, Version 8.0, Module 3, Section A, Topic 3.
NEW QUESTION # 51
When the discrete available-to-promise (ATP) method is used, the master production receipt quantity is committed to:
- A. requests only for shipment in the period of the receipt.
- B. requests only for shipment before the next master production schedule (MPS) receipt.
- C. any request for shipment prior to the demand time fence (DTF).
- D. any request for shipment prior to the planning time fence.
Answer: B
Explanation:
The discrete available-to-promise (ATP) method is a calculation based on the available-to-promise figure in the master schedule. For the first period, the ATP is the sum of the beginning inventory plus the MPS quantity minus backlog for all periods until the item is master scheduled again. For other periods, the quantity that is available for an item is based on the quantity available within an individual purchase. Therefore, the master production receipt quantity is committed to requests only for shipment before the next MPS receipt12.
References:
*1: APICS CPIM Part 2 Exam Content Manual, Version 8.0, p. 29
*2: NetSuite Applications Suite - Available to Promise Methods3
NEW QUESTION # 52
The primary benefit that results from the cross-training of employees is:
- A. improved capacity.
- B. shortened lead time.
- C. improved flexibility.
- D. effective problem-solving.
Answer: C
Explanation:
Cross-training employees is the process of training employees for skills and job roles they weren't initially hired for. This allows them to switch between different tasks and roles when needed, which increases the flexibility and adaptability of the workforce. Cross-training also enhances the problem-solving, communication, and collaboration skills of the employees, but the primary benefit is improved flexibility12 References: 1: 9 Major Benefits of Cross-Training Employees Effectively 2: Employee cross-training: 8 benefits you can't afford to miss
NEW QUESTION # 53
Which of the following prioritization rules will have the greatest impact In reducing the number of orders In queue?
- A. Fewest operations remaining
- B. First come, first served
- C. Shortest processing time
- D. Critical ratio
Answer: C
Explanation:
The shortest processing time rule is a prioritization rule that assigns the highest priority to the job that requires the least amount of processing time. This rule minimizes the average flow time of jobs and reduces the number of jobs in queue. The critical ratio rule assigns priority based on the ratio of time remaining until the due date to the remaining processing time. The fewest operations remaining rule assigns priority based on the number of remaining operations for each job. The first come, first served rule assigns priority based on the arrival time of the jobs. References: Managing Supply Chain Operations, Chapter 9: Scheduling and Sequencing, page
237. Manufacturing Planning and Control for Supply Chain Management: The CPIM Reference, Second Edition, Chapter 13: Scheduling and Execution, page 419.
NEW QUESTION # 54
Based on the values reported in the table below, what is the inventory turnover?
- A. 0.50
- B. 0.58
- C. 2.60
- D. 1.73
Answer: D
Explanation:
Inventory turnover is a ratio that measures how many times a company sells and replaces its inventory in a given period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory value. A higher inventory turnover indicates a more efficient use of inventory, while a lower turnover implies excess inventory or poor sales1.
Based on the values reported in the table, we can calculate the inventory turnover as follows:
Inventory Turnover = COGS / Average Inventory Value = $260,000 / $150,000 = 1.73 Therefore, the correct answer is C.
References := 1 Inventory Turnover - How to Calculate Inventory Turns2
NEW QUESTION # 55
If the total part failure rate of a machine is 0.00055 failures per hour, what would be the mean time between failures (MTBF) in hours?
- A. 1,818.2
- B. 59.99945
- C. 1.98
- D. 0.99945
Answer: A
Explanation:
The mean time between failures (MTBF) is the inverse of the failure rate. The failure rate is givenas 0.00055 failures per hour, so the MTBF is 1/0.00055 = 1,818.2 hours. This means that the average time the machine operates without failing is 1,818.2 hours. References: MTBF Formula | How to Calculate Mean Time Between Failure? - EDUCBA, Mean time between failures - Wikipedia
NEW QUESTION # 56
A company assembles kits of hand tools after receipt of the order from distributors and uses two-level master scheduling. The appropriate levels of detail for the forecasts that are input to master scheduling would be total number of kits and:
- A. each unique tool.
- B. raw material requirements.
- C. specific kit configurations.
- D. percentage of total for each tool.
Answer: C
Explanation:
A company that uses two-level master scheduling has a master production schedule (MPS) for the end items (kits) and a final assembly schedule (FAS) for the components (tools). The forecasts that are input to master scheduling should reflect the total number of kits and the specific kit configurations, as these determine the demand for the components. The other options are not relevant for master scheduling, as they do not reflect the end item demand or the bill of materials structure. References: EXAM CONTENT MANUAL PREVIEW, page 10, section 4.1.2. Manufacturing Planning and Control for Supply Chain Management: The CPIM Reference, Second Edition, page 163, section 6.2.
NEW QUESTION # 57
Which of the following planning modules considers the shortest-range planning goals?
- A. Capacity requirementsplanning(CRP)
- B. Input/output analysis
- C. Resource planning
- D. Rough-cut capacity planning (RCCP)
Answer: A
Explanation:
Capacity requirements planning (CRP) is a planning module that considers the shortest-range planning goals.
CRP is a process of determining the amount of available capacity and comparing it with the required capacity to execute the planned orders in the master production schedule (MPS) and the material requirements planning (MRP). CRP is usually done at the work center level and for a time horizon of a few weeks or months. CRP helps to identify and resolve capacity issues, such as overloads or underloads, and to adjust the production plan accordingly. CRP is the most detailed and accurate method of capacity planning, as it considers the actual routings, lead times, and lot sizes of the orders. The other options are not correct, as they either consider longer-range planning goals or less detailed capacity information:
*Input/output analysis is a technique of monitoring the input (planned orders) and output (actual production) of a work center or a product family, and comparing them with the available capacity. Input/output analysis is usually done at the aggregate level and for a time horizon of a few months or quarters. Input/output analysis helps to measure the performance of the production plan and to identify and correct deviations from the plan.
*Resource planning is a process of determining the long-range capacity requirements for labor, equipment, facilities, and other resources, based on the sales and operations plan (S&OP). Resource planning is usually done at the aggregate level and for a time horizon of a few years. Resource planning helps to support the strategic decisions and investments related to the resource capacity.
*Rough-cut capacity planning (RCCP) is a process of verifying the feasibility of the master production schedule (MPS) in terms of the available capacity of critical resources, such as key machines or labor skills.
RCCP is usually done at the product family level and for a time horizon of a few months or quarters. RCCP helps to validate the MPS and to identify and resolve potential capacity bottlenecks or gaps. References:
*[CPIM Part 2 - Section A - Topic 2 - Capacity Planning]
*Capacity Requirements Planning (CRP)
*Input/Output Control
*Resource Planning
*Rough Cut Capacity Planning (RCCP)
NEW QUESTION # 58
Given the information below, reducing which measure by 10% would contribute most to shortening the cash-to-cash cycle time?
- A. Inventory value
- B. Accounts payable
- C. Cost of capital
- D. Accounts receivable
Answer: A
Explanation:
Reducing the inventory value by 10% would contribute most to shortening the cash-to-cash cycle time. The cash-to-cash cycle time is calculated as the days of inventory outstanding plus days of sales outstanding minus days of payables outstanding. By reducing the inventory value, the company can decrease the days of inventory outstanding, leading to a shorter cash-to-cash cycle time. This aligns with CPIM's focus on efficient inventory management to optimize the supply chain. References: The concepts are covered in detail in Module
4: Inventory Management
NEW QUESTION # 59
Capacity requirements planning (CRP) is applicable primarily In companies operating In an environment where:
- A. the status of work orders is disregarded.
- B. material requirements planning (MRP) is used.
- C. lean principles are used.
- D. backlog is very low.
Answer: B
Explanation:
Capacity requirements planning (CRP) is a technique that calculates the capacity needed to produce the planned orders generated by material requirements planning (MRP). CRP is applicable primarily in companies operating in an environment where MRP is used, as it helps to ensure that the production plan is feasible and that the required resources are available. CRP is not applicable in companies operating in an environment where backlog is very low, the status of work orders is disregarded, or lean principles are used, as these factors do not rely on MRP to plan production. References: Capacity Requirements Planning | APICS Dictionary Term of the Day, APICS CPIM 8 Planning and Inventory Management | ASCM
NEW QUESTION # 60
A life cycle assessment (LCA) would be used to determine:
- A. the length of a long-term agreement.
- B. If risk pooling would reduce inventory investment.
- C. environmental aspects and impacts.
- D. how an Item should be scheduled.
Answer: C
Explanation:
A life cycle assessment (LCA) is a method of evaluating the environmental impacts of a product or service throughout its life cycle, from raw material extraction to disposal or recycling1. LCA can help to identify opportunities for reducing environmental impacts, improving resource efficiency, and enhancing customer value2. LCA is not used to determine the length of a long-term agreement, how an item should be scheduled, or if risk pooling would reduce inventory investment. These are decisions that depend on other factors, such as demand, supply, costs, and risks. References:
*CPIM Part 2 Study Guide, Chapter 2: Supply Chain Strategy, Section 2.3: Sustainability and Corporate Social Responsibility
*ILCD Handbook - General guide on LCA - Detailed guidance, Chapter 1: Introduction to LCA and LCT
NEW QUESTION # 61
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