APICS APICS Certifications CPIM-MPR Questions & Answers

• Question 511:

  Total the forecast demand for the planning horizon.

  Determine the opening inventory and the desired ending inventory Calculate the total production required as follows:

  Total Production = total forecast + back orders

  +

  ending inventory -opening inventory

  Calculate the production required each period by dividing the total production by the number of periods.

  Calculate the ending inventory for each period.

  Above is the general procedure

  A.

  for developing a level production

  B.

  to forecast capacity requirements to meet demand

  C.

  To identify the production gaps

  D.

  All of these

  Correct Answer: A

• Question 512:

  In some industries, is the only strategy that can be followed. Farmers, for instance, must produce in the growing season. The post office must process mail over the Christmas rush and in slack seasons. Restaurants have to serve meals when the customers want them. These industries cannot stockpile or inventory their products or services and must be capable of meeting demands as it occurs.

  A. Subcontracting

  B. Resource Planning

  C. Chase strategy

  D. Production leveling strategy

  Correct Answer: C

• Question 513:

  Which of the following results in inventory build ups in low-demand periods?

  A. Production leveling strategy

  B. Chase strategy

  C. Hybrid strategy

  D. None of these

  Correct Answer: A

• Question 514:

  The advantage/s of production leveling is/are:

  A. It results in smooth level off operation that avoids the costs of changing production levels.

  B. Firms do not need to have excess capacity to meet peak demand

  C. Firms do not need to hire and train workers and lay them off in slack periods D. All of these

  Correct Answer: D

• Question 515:

  A company wants to produce 10, 000 units of an item over the next three months at a level rate. The first month has 20 working days; the second, 21 working days; and the third, 12 working days because of an annual shutdown. On the average, how much should the company produce each day to level production?

  A. 118.8 units

  B. 188.7 units

  C. 189.7 units

  D. 180.00 units

  Correct Answer: B

• Question 516:

  Basic strategies that can be used in a production plan may be:

  A. Chase strategy

  B. Production leveling strategy

  C. Subcontracting

  D. Any one of these

  Correct Answer: D

• Question 517:

  Production planning problem typically has the following characteristics EXCEPT:

  A. A time horizon of 12 months is used, with periodic updating perhaps every month or quarter

  B. Production demand consists of one or a few product families or common units

  C. Demand is rarely fluctuating

  D. Plant and equipment are fixed within the time horizon

  Correct Answer: C

• Question 518:

  Over the time span of the production plan, large changes in capacity are usually not possible. Additions or subtractions in plant and equipment are impossible or very difficult to accomplish in this period. However, some changes can be done. Which of the following are out of those variations?

  A. People can be hired and laid off, overtime and short-time can be worked, and shifts can be added or removed.

  B. Inventory can be built up in slack periods and sold or used in periods of high demand.

  C. Work can be subcontracted or extra equipment leased

  D. All of these

  Correct Answer: D

• Question 519:

  At the production planning level, where little detail is needed, this requires identifying product groups or families of individual product groups or families of individual products based on:

  A. Similarity of manufacturing process

  B. Difference in manufacturing processes of different product lines

  C. Similarities of processes in manufacturing of same product line items

  D. None of these

  Correct Answer: A

• Question 520:

  ERP systems:

  A. Having large scope allows the tracking of orders and other important planning and control information throughout the entire company from procurement to ultimate customer delivery

  B. Capable of allowing managers to share data between firms

  C. Both of these

  D. None of these

  Correct Answer: C