APICS CPIM Online Practice Questions and Exam Preparation

APICS CPIM Online Questions & Answers

• Question 1:

  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

  A. $825
  B. $1,325
  C. $1,400
  D. $1,525
  D. $1,525

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  Explanation/Reference:

  The total landed cost is the sum of all the costs associated with buying a quantity larger than immediately needed, including the cost of the product, the custom fees, the freight, and the warehouse rent. Based on the table, the total landed cost can be calculated as follows:

  Landed cost = material cost + custom fees + freight + warehouse rent Landed cost = $500 + $125 + $700 + $200 Landed cost = $1,525

  Therefore, the correct answer is D. $1,525. The other options are not correct, as they either omit some of the costs or use incorrect values. The total landed cost reflects the direct costs only to move the product from the factory floor to the customer. It is an important supply chain KPI in inventory management, as it helps to determine the optimal order quantity, pricing, and profitability of the products.

  References : What is Landed Cost? | Calculation and Tips to Improve - ORBA Cloud CFO What is Landed Cost and Why is it Important | Finale Inventory

• Question 2:

  Scheduled receipts shows:

  A. The quantities ordered
  B. When quantities ordered are expected to be completed
  C. When quantities ordered are expected to be available
  D. All of the Above
  D. All of the Above

• Question 3:

  Which of the following trade-offs should be evaluated when determining where to place inventory in a multi-echelon supply chain network?

  A. Production cost and lot size quantity
  B. Purchase cost and shrinkage rates
  C. Transportation cost and delivery time
  D. Customer price and order quantity
  C. Transportation cost and delivery time

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  Explanation/Reference:

  Transportation cost and delivery time are two of the trade-offs that should be evaluated when determining where to place inventory in a multi-echelon supply chain network. A multi-echelon supply chain network consists of multiple levels of distribution, such as factories, warehouses, distribution centers, and retailers. Placing inventory closer to the customers can reduce the delivery time and improve the service level, but it can also increase the transportation cost and the inventory holding cost. Placing inventory farther from the customers can reduce the transportation cost and the inventory holding cost, but it can also increase the delivery time and the risk of stockouts. Therefore, the optimal inventory placement depends on balancing these trade-offs and finding the lowest total cost for the desired service level. The other trade-offs are not directly related to inventory placement in a multi-echelon supply chain network. Production cost and lot size quantity are more related to inventory replenishment policies and economies of scale. Purchase cost and shrinkage rates are more related to inventory sourcing and quality control. Customer price and order quantity are more related to demand management and pricing strategies.

• Question 4:

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

  A. facilitate mixed-model scheduling.
  B. prevent defects.
  C. Improve machine utilization.
  D. enable one-piece flow.
  B. prevent defects.

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  Explanation/Reference:

  Poka-yoke is a Japanese term that means "mistake-proofing". It is a lean tool that aims to eliminate errors and defects by designing processes or products in such a way that mistakes are either prevented or detected and corrected immediately. Poka-yoke can be applied in various ways, such as using sensors, guides, checklists, alarms, or color-coding, to ensure that the process or product meets the quality standards and customer expectations. One of the benefits of integrating poka-yoke into the production process is that it can be used to prevent defects, which can result in lower costs, higher customer satisfaction, and improved productivity. By avoiding defects, poka-yoke can also reduce waste, rework, inspection, and warranty claims, as well as enhance safety and reliability. 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 C

• Question 5:

  Electric data interchange enables customers and suppliers to electromagnetically exchange transaction information.

  A. True
  B. False
  B. False

• Question 6:

  If company uses other companies or individuals to distribute some or all of its products to the final consumer, these companies or individuals are called:

  A. Intermediaries
  B. Mediums
  C. Channel
  D. Supply chain
  A. Intermediaries

• Question 7:

  Operational splitting is practical when:

  A. setup time is low compared to run time
  B. a suitable work center is idle
  C. it is possible for an operator to run more than one machine at a time
  D. All of the above
  D. All of the above

• Question 8:

  The primary reason for tracing a component with scheduling problems to Its master production schedule (MPS) item is to:

  A. revise the rough-cut capacity plan.
  B. reschedule a related component on the shop floor.
  C. check the accuracy of the bills for the MPS items.
  D. determine if a customer order will be impacted.
  D. determine if a customer order will be impacted.

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  Explanation/Reference:

  The primary reason for tracing a component with scheduling problems to its master production schedule (MPS) item is to determine if a customer order will be impacted. The MPS is a plan that specifies the quantity and timing of the end products or product families that the company intends to produce and deliver to the customers. The MPS is derived from the sales and operations plan (SandOP) and the customer orders, and it drives the material requirements planning (MRP) and the capacity requirements planning (CRP). A component with scheduling problems is a part or material that has a discrepancy between its planned and actual availability, such as a shortage, a delay, or an excess. Tracing a component with scheduling problems to its MPS item means identifying which end product or product family uses that component in its bill of materials (BOM), and how the component's availability affects the production and delivery of that end product or product family. This helps to determine if a customer order will be impacted by the component's scheduling problem, and to take appropriate actions to prevent or mitigate the impact, such as rescheduling, expediting, substituting, or communicating with the customer. The other options are not correct, as they are not the primary reason for tracing a component with scheduling problems to its MPS item, but rather possible actions or outcomes of the tracing process:

  Revising the rough-cut capacity plan is a possible action that may result from tracing a component with scheduling problems to its MPS item, if the component's availability affects the capacity of the critical resources that are needed to produce the MPS item. Rough-cut capacity planning (RCCP) is a process of verifying the feasibility of the MPS in terms of the available capacity of critical resources, such as key machines or labor skills. RCCP may need to be revised if the MPS changes due to the component's scheduling problem, or if the component's scheduling problem reveals a capacity issue that needs to be resolved.

  Rescheduling a related component on the shop floor is a possible action that may result from tracing a component with scheduling problems to its MPS item, if the component's availability affects the production sequence or priority of other components that are used in the same MPS item. Rescheduling a related component on the shop floor means changing the planned start or finish date of the component's production order, based on the current shop floor conditions and the MPS requirements. Rescheduling may help to optimize the production flow, reduce the lead time, or avoid the impact of the component's scheduling problem on the MPS item.

  Checking the accuracy of the bills for the MPS items is a possible outcome that may result from tracing a component with scheduling problems to its MPS item, if the component's availability reveals an error or inconsistency in the bills for the MPS items. Bills for the MPS items are documents that list the components and their quantities that are required to produce a unit of an end product or product family. Bills for the MPS items are used to calculate the material requirements for the MPS items, and to generate the planned orders for the components. Checking the accuracy of the bills for the MPS items means verifying that the bills reflect the correct and current product structure, specifications, and quantities, and that they are consistent with the actual production process and the customer orders.

• Question 9:

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

  A. Customer requirements with costing
  B. Engineering with operations
  C. Customer purchasing with supplier shipping
  D. Competitive analysis with product design
  D. Competitive analysis with product design

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  Explanation/Reference:

  A house of quality (HOQ) chart is a product planning matrix that is used to show how customer requirements relate directly to the ways and methods companies can use to achieve those requirements. HOQ charts are part of the quality function deployment (QFD) method, which helps to ensure quality in product development and service delivery. HOQ charts use a design that resembles the outline of a house, with different sections representing different aspects of the product or service1. One of the functions that a HOQ chart aligns is competitive analysis with product design. Competitive analysis is the process of evaluating the strengths and weaknesses of the competitors in the market, and identifying the opportunities and threats they pose to the company.Product design is the process of creating the features, functions, and specifications of the product or service that meet the customer needs and expectations. A HOQ chart aligns these two functions by comparing the company's product design with the competitors' product design, and showing how well the company's product design satisfies the customer requirements. This helps the company to identify the areas of improvement, differentiation, and innovation in the product design, and to create a competitive advantage in the market

• Question 10:

  Which of the following actions best supports a company's strategic focus on delivery speed to improve competitive advantage?

  A. Maintaining high-capacity utilization
  B. Developing flexible operations
  C. Cross-training workers
  D. Implementing rapid process improvements
  B. Developing flexible operations

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  Explanation/Reference:

  Developing flexible operations best supports a company's strategic focus on delivery speed to improve competitive advantage. Delivery speed is the time it takes for a company to deliver its products or services to the customers after receiving an order. Delivery speed is a key factor in customer satisfaction, retention, and loyalty, as well as a source of differentiation and value creation in the market1. Developing flexible operations quickly and efficiently to customer needs and expectations. Flexible operations can improve delivery speed by reducing lead times, increasing responsiveness, enhancing quality, and minimizing costs