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

Certified in Planning and Inventory Management (CPIM 8.0)

Last Update Apr 23, 2024
Total Questions : 150

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Questions 1

Long lead-time items with stable demand would best be supported by a supply chain:

Options:

A.  

using a pull system.

B.  

linked through an enterprise resources planning (ERP) system.

C.  

designed to be responsive.

D.  

positioning inventory close to the consumer.

Discussion 0
Questions 2

A company with stable demand that uses exponential smoothing to forecast demand would typically use a:

Options:

A.  

low alpha value.

B.  

low beta value.

C.  

high beta value.

D.  

high alpha value.

Discussion 0
Questions 3

Improvements in an Input/output control (I/O control) system will most likely lead to:

Options:

A.  

flattened bills of material (BOMs).

B.  

a change in operation sequencing.

C.  

reduction in queue size and queue time.

D.  

fewer engineering change notifications.

Discussion 0
Questions 4

A manufacturer has a forecasted annual demand of 1,000,000 units for a new product. They have to choose 1 of 4 new pieces of equipment to produce this product. Assume that revenue will be $10 per unit for all 4 options.

Which machine will maximize their profit if the manufacturer anticipates market demand will be steady for 3 years and there is no residual value for any of the equipment choices?

MachineFixed CostVariable Cost per UnitAnnual Capacity

AS100.000$6 00800,000 units

B$200,000$5 501.000,000 units

C$250,000$5 001,200,000 units

D$1 000.000$4 501 400.000 units

Options:

A.  

Machine A

B.  

Machine B

C.  

Machine C

D.  

Machine D

Discussion 0
Questions 5

Which of the following techniques would a group use to prioritize problems?

Options:

A.  

Critical path analysis

B.  

Pareto analysis

C.  

Scatter charts

D.  

Cause-and-effect diagrams

Discussion 0
Questions 6

Which of the following factors Is considered a carrying cost?

Options:

A.  

Setup

B.  

Transportation

C.  

Obsolescence

D.  

Scrap rate

Discussion 0
Questions 7

For a process that is outside its upper control limit (UCL), which of the following techniques would best be used to return the process under control?

Options:

A.  

Conduct a Pareto analysis

B.  

Plan-do-check-action (PDCA)

C.  

Plot histograms

D.  

Monitor control charts

Discussion 0
Questions 8

Which of the following statements about demonstrated capacity Is true?

Options:

A.  

It reflects the future load.

B.  

It should be higher than rated capacity.

C.  

It considers utilization and efficiency factors.

D.  

It is determined from actual results.

Discussion 0
Questions 9

A house of quality (HOQ) chart aligns which pair of functions?

Options:

A.  

Customer requirements with costing

B.  

Engineering with operations

C.  

Customer purchasing with supplier shipping

D.  

Competitive analysis with product design

Discussion 0
Questions 10

When the discrete available-to-promise (ATP) method is used, the master production receipt quantity is committed to:

Options:

A.  

any request for shipment prior to the planning time fence.

B.  

any request for shipment prior to the demand time fence (DTF).

C.  

requests only for shipment before the next master production schedule (MPS) receipt.

D.  

requests only for shipment in the period of the receipt.

Discussion 0
Questions 11

In choosing suppliers, a company wishes to maintain maximum leverage to reduce costs. Which of the following supply chain strategies would provide this opportunity?

Options:

A.  

Single sourcing

B.  

Multisourcing

C.  

Long-term agreement

D.  

Service-level agreement (SLA)

Discussion 0
Questions 12

Which of the following statements characterizes a pull system In distribution management?

Options:

A.  

Each warehouse makes its own replenishment decisions.

B.  

It uses distribution requirements planning(DRP).

C.  

It uses uniform performance measures.

D.  

It uses fair-share allocation.

Discussion 0
Questions 13

What is the main negative effect of changing the due dates of open orders?

Options:

A.  

The schedule information becomes inaccurate.

B.  

The customer service level decreases.

C.  

It leads to "nervousness" in the schedule.

D.  

The schedule does not support demand.

Discussion 0
Questions 14

An example of a flexibility metric for an organization Is:

Options:

A.  

average batch size.

B.  

scrap rate.

C.  

percentageof orders delivered late.

D.  

cycle time.

Discussion 0
Questions 15

For a company that uses first in, first out (FIFO) inventory accounting, the actual use in production of a recently arrived shipment of more expensive components rather than lower-cost components

previously received will have which of the following results?

Options:

A.  

Higher cost of goods sold (COGS)

B.  

Lower COGS

C.  

No change to COGS

D.  

A violation of FIFO rules

Discussion 0
Questions 16

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.

Discussion 0
Questions 17

In which of the following phases of the product life cycle is product price most effective in influencing demand?

Options:

A.  

Introduction

B.  

Growth

C.  

Maturity

D.  

Decline

Discussion 0
Questions 18

In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:

Options:

A.  

reduced forecast variability.

B.  

fewer customer order changes.

C.  

fewer customer defections.

D.  

earlier Identification of shifts Incustomer preferences.

Discussion 0
Questions 19

A work center has 3 machines that are all run at the same time with a single worker. The work center has an efficiency of 75% and a utilization of 100%. What is the work center's capacity in standard hours for an 8-hour shift?

Options:

A.  

6 hours

B.  

8 hours

C.  

18 hours

D.  

24 hours

Discussion 0
Questions 20

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.

Discussion 0
Questions 21

During the sales and operations planning (S&OP) process, which of the following tasks is the primary responsibility of the functional representatives on the supply planning team?

Options:

A.  

Identifying reasons why the demand plan is not realistic

B.  

Communicating when an event will prevent meeting the supply plan

C.  

Ensuring that the functional objectives are considered when developing the plans

D.  

Understanding how to use the plan to improve functional performance

Discussion 0
Questions 22

In a make-to-stock (MTS) environment, the master production schedule (MPS) Is usually a schedule of which of the following types of items?

Options:

A.  

Phantom items

B.  

Finished goods items

C.  

Component/subassembly items

D.  

Raw material items

Discussion 0
Questions 23

Which of the following inventory management techniques is most responsive to changes in demand levels?

Options:

A.  

Two-bin system

B.  

Periodic review system

C.  

Cycle counting

D.  

ABC classification

Discussion 0
Questions 24

It takes an average of 3 hours to set up a model and 1 hour to run, but depending on the complexity of the models, the setup time can be significantly different. Last week. 2 modelers were working on different projects. Each worked 40 hours. One modeler finished 5 models a day, and the other finished 1 model a day. What was the demonstrated capacity last week?

Options:

A.  

25models

B.  

15models

C.  

10models

D.  

30models

Discussion 0
Questions 25

Which of the following methods places a replenishment order when the quantity on hand falls below a predetermined level?

Options:

A.  

Min-max system

B.  

Fixed order quantity

C.  

Periodic review

D.  

Available-to-promlse (ATP)

Discussion 0
Questions 26

In a lean environment, the batch-size decision for planning "A" items would be done by:

Options:

A.  

least total cost.

B.  

min-max system.

C.  

lot-for-lot (L4L).

D.  

periodic order quantity.

Discussion 0
Questions 27

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

Discussion 0
Questions 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.

Discussion 0
Questions 29

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

Discussion 0
Questions 30

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.

Discussion 0
Questions 31

The production plan defines which of the following targets?

Options:

A.  

Sales forecast

B.  

Quantities of each product to be produced

C.  

Level of output to be produced

D.  

Business plans for the company

Discussion 0
Questions 32

An example of an assignable cause of variation in process performance is:

Options:

A.  

power fluctuation during machine operation.

B.  

machine vibration during operation.

C.  

incorrect setup of a machine by the operator.

D.  

changes in temperature in the machine shop.

Discussion 0
Questions 33

A planner has chosen to increase the order point for a raw material. Which of the following costs is most likely to increase?

Options:

A.  

Carrying

B.  

Ordering

C.  

Landed

D.  

Product

Discussion 0
Questions 34

How would a master production schedule (MPS) be used In an assemble-to-order (ATO) manufacturing environment?

Options:

A.  

The MPS is used to plan subassemblies and components; end items are only scheduled when a customer order is received.

B.  

Subassemblies are scheduled in the MPS when the customer order is received, and production can start.

C.  

Typically, the MPS is not used in companies using an ATO manufacturing strategy.

D.  

Often In an ATO environment, the MPS is created once a year and only revised if a product is discontinued.

Discussion 0
Questions 35

Labor3 people

Work hours10 hours per day

Days4 days per week

Meetings with work area employees1/2 hour per day

Work area efficiency85%

Given the information above, what is the weekly theoretical capacity of this work area in hours?

Options:

A.  

97

B.  

102

C.  

114

D.  

120

Discussion 0
Questions 36

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%.

Discussion 0
Questions 37

An example of a cradle-to-cradle sustainability model would be:

Options:

A.  

a laundry service collects dirty baby clothes from families; cleans the clothes in large, efficient batches; and then sorts and delivers the clothes back to each family.

B.  

a coffee shop collects paper waste in its restaurants, has a selected supplier collect the paper waste to be recycled, and then purchases paper products from that supplier.

C.  

a company uses wood that has been gathered from multiple sources to construct items, such as beds and toys for babies and young children.

D.  

a bank offers the lowest interest rates on loans to firms that are committed to using recycled materials and implementing zero-waste initiatives in their processes.

Discussion 0
Questions 38

Which of the following situations is most likely to occur when using a push system?

Options:

A.  

Work centers receive work even if capacity is not available.

B.  

Work centers are scheduled using finite capacity planning.

C.  

Work centers operate using decentralized control.

D.  

Work centers signal previous work centers when they are ready for more work.

Discussion 0
Questions 39

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

Discussion 0
Questions 40

Check sheets can be used to:

Options:

A.  

determine the frequency of a defect and the time period between occurrences.

B.  

provide a quick method to identify if possible defects exist.

C.  

allow improvement teams to see if action items are being completed on time.

D.  

provide an indication of correlation between defects.

Discussion 0
Questions 41

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

Discussion 0
Questions 42

Which of the following planning modules considers the shortest-range planning goals?

Options:

A.  

Capacity requirementsplanning(CRP)

B.  

Input/output analysis

C.  

Resource planning

D.  

Rough-cut capacity planning (RCCP)

Discussion 0
Questions 43

Which of the following prioritization rules will have the greatest impact In reducing the number of orders In queue?

Options:

A.  

Critical ratio

B.  

Shortest processing time

C.  

Fewest operations remaining

D.  

First come, first served

Discussion 0
Questions 44

Marketing has requested a significant change in the mix for a product family. The requested change falls between the demand and the planning time fences. The most appropriate action by the master scheduler is to:

Options:

A.  

reject the request.

B.  

accept the request.

C.  

forward the request to senior management.

D.  

check the availability of required material.

Discussion 0
Questions 45

The costs provided in the table below are associated with buying a quantity larger than immediately needed. What Is the total landed cost based on this table?

Cost CategoryCost

Custom fees$125

Freight$700

Warehouse rent$200

Matenal cost$500

Options:

A.  

$825

B.  

$1,325

C.  

$1,400

D.  

$1,525

Discussion 0