APICS APICS Certifications CPIM Questions & Answers

• Question 111:

  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?

  A. 25models

  B. 15models

  C. 10models

  D. 30models

  Correct Answer: C

  The demonstrated capacity last week is the total number of models completed by both modelers in 40 hours. One modeler finished 5 models a day, which means 25 models in a week. The other modeler finished 1 model a day, which means 5 models in a week. Therefore, the demonstrated capacity last week is 25 + 5 = 30 models. However, this is not one of the options given. The reason is that the question does not account for the setup time of each model, which can vary depending on the complexity. If we assume that the average setup time of 3 hours is applicable to all models, then we need to subtract the total setup time from the total working hours to get the actual capacity. The total setup time for30 models is 30 x 3 = 90 hours. The total working hours for both modelers is 2 x 40 = 80 hours. Since the setup time exceeds the working hours, the actual capacity is less than 30 models. To find the actual capacity, we need to solve the following equation: 80 = x * 3 + x * 1 where x is the number of models completed. Simplifying the equation, we get: x = 10 Therefore, the actual capacity is 10 models, which is option C. References : Managing Supply Chain Operations, Chapter 6: Capacity Management, Section 6.1: Capacity Concepts, Subsection 6.1.1: Capacity Definitions CPIM ontent Manual, Module 4: Supply, Section 4.2: Capacity Management, Subsection 4.2.1: Capacity Concepts

• Question 112:

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

  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.

  Correct Answer: B

  A cradle-to-cradle sustainability model is a design concept that aims to create products that can be reused or recycled indefinitely, without generating any waste or pollution. It mimics the natural cycles of nature, where everything is a nutrient for something else. A cradle-to-cradle model differs from a cradle-to-grave model, which follows a linear path of production, consumption, and disposal.

  Option B is an example of a cradle-to-cradle model, because the paper waste from the coffee shop is collected and recycled by a supplier, who then provides new paper products to the coffee shop. This creates a closed loop of material flow, where nothing is wasted and the paper is continuously reused.

  Option A is not a cradle-to-cradle model, because the laundry service does not reuse or recycle the baby clothes. It only cleans and delivers them, but does not prevent them from eventually ending up in the landfill.

  Option C is not a cradle-to-cradle model, because the company does not ensure that the wood it uses is from sustainable sources, or that the products it makes can be easily disassembled and recycled. It also does not consider the environmental impacts of transporting the wood from different locations.

  Option D is not a cradle-to-cradle model, because the bank does not directly influence the design or production of the products that the firms use. It only provides financial incentives for them to adopt more sustainable practices, but does not guarantee that they will follow a cradle-to-cradle approach.

• Question 113:

  A company is having trouble with raw material deliveries and has decided to develop a supplier certification program. The certification process most appropriately would start with which of the following suppliers?

  A. Suppliers of "A" classified items

  B. Suppliers recently ISO 9000 certified

  C. Suppliers with the worst performance records

  D. Suppliers with vendor-managed inventory (VMI)

  Correct Answer: A

  A supplier certification program is a formal process of evaluating and approving potential suppliers based on certain criteria, such as quality, delivery, cost, and service. The purpose of a supplier certification program is to ensure that the suppliers meet the standards and expectations of the company and to reduce the risks and costs associated with poor supplier performance. A supplier certification program should start with the have the highest impact on the company's profitability and customer satisfaction, and therefore require the highest level of supplier reliability and quality. By certifying the suppliers of "A" classified items, the company can improve its supply chain performance and reduce its dependence on inspection and corrective actions. This aligns with CPIM's focus on plan and manage supply and plan and manage distribution.

• Question 114:

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

  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

  Correct Answer: A

  Substituting capital equipment in place of direct labor can be economically justified for scenario A, where volumes are forecasted to increase. This is because capital equipment can provide higher productivity, efficiency, and quality than direct labor, especially for large-scale and standardized production. Capital equipment can also reduce labor costs, such as wages, benefits, and training, and avoid labor shortages or turnover. However, capital equipment also involves high initial investment, maintenance, and depreciation costs, and may require more skilled workers to operate and monitor. Therefore, the substitution of capital equipment for direct labor should be based on a careful analysis of the trade-offs between the costs and benefits of both alternatives.

  Option B is not correct, because material prices are forecasted to increase. This scenario does not directly affect the decision to substitute capital equipment for direct labor, as both alternatives use the same materials. However, increasing material prices may reduce the profitability of the production, and may require the company to find ways to reduce material usage, such as improving material yield, reducing scrap and rework, or sourcing from cheaper suppliers.

  Option C is not correct, because implementing a pull system in production. This scenario does not favor the substitution of capital equipment for direct labor, as a pull system is based on the principle of producing only what is needed by the customer, when it is needed, and in the quantity needed. A pull system requires flexibility, responsiveness, and adaptability to the changing customer demand, which may be better achieved by direct labor than capital equipment. A pull system also aims to minimize inventory, waste, and overproduction, which may reduce the need for capital equipment.

  Option D is not correct, because functional layouts are being utilized. This scenario does not support the substitution of capital equipment for direct labor, as functional layouts are based on grouping similar or related processes or machines together, regardless of the product flow. Functional layouts may result in long and complex material flows, high transportation and handling costs, high work-in-process inventory, and low visibility and coordination of the production. Functional layouts may also require more direct labor to move and monitor the materials and machines. Capital equipment may be more suitable for product layouts, where the processes or machines are arranged according to the sequence of operations for a specific product or family of products.

• Question 115:

  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.

  Correct Answer: D

  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 116:

  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?

  A. Higher cost of goods sold (COGS)

  B. Lower COGS

  C. No change to COGS

  D. A violation of FIFO rules

  Correct Answer: A

  FIFO inventory accounting assumes that the first items purchased or produced are the first ones sold or used. Therefore, the cost of goods sold reflects the oldest costs of inventory. If a company uses a more expensive shipment of components instead of the lower-cost ones that were previously received, it will increase the cost of goods sold and reduce the gross profit margin. This is because the newer components have a higher unit cost than the older ones, and the cost of goods sold is calculated by multiplying the unit cost by the number of units sold or used. References:

  稢PIM Part 1 ontent Manual, page 17, section 3.2.1: "Explain the impact of inventory valuation methods (for example, first in, first out [FIFO], last in, first out [LIFO], average cost, standard cost) on financial statements and taxes."

  稢PIM Part 1 Study Guide, page 63, section 3.2.1: "The FIFO method assumes that the first goods purchased or produced are the first goods sold. The cost of goods sold is based on the oldest costs, and the ending inventory is based on the most recent costs. The FIFO method results in a higher net income and a higher ending inventory value in a period of rising prices."

• Question 117:

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

  A. Supply disruptions

  B. Forecast inaccuracy

  C. Procurement problems

  D. Loss of intellectual property

  Correct Answer: D

  Global outsourcing and shared suppliers serving an industry are drivers of loss of intellectual property risk, which is the risk of losing proprietary information or technology to competitors or other parties. This risk can arise from inadequate protection of data, contracts, patents, or trade secrets, or from intentional or unintentional disclosure by suppliers or employees. Loss of intellectual property can result in reduced competitive advantage, lower market share, or legal disputes. References := CPIM Part 2 ontent Manual, Version 8.0, ASCM, 2021, p. 11. CPIM Part 2 Learning System, Version 8.0, Module 1, Section A, Topic 4.

• Question 118:

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

  A. Increased inventory

  B. Improved demand response

  C. Fewer setups

  D. Fewer material shortages

  Correct Answer: C

  Mixed-model scheduling is a technique that produces different models of the same product family in the same production line or work center. One of the benefits of mixed-model scheduling is that it reduces the number of setups required, as the models share common components and processes. Fewer setups can lead to lower setup costs, higher productivity, and better utilization of resources. The other outcomes are not benefits of mixed-model scheduling. Increased inventory, improved demand response, and fewer material shortages are more related to other factors such as inventory policies, demandforecasting, and supply planning. References: Mixed Model Scheduling | APICS Dictionary Term of the Day, APICS CPIM 8 Planning and Inventory Management | ASCM

• Question 119:

  Typically, rough-cut capacity planning (RCCP) in a job shop environment would review which of the following work centers to determine the ability to execute the plan?

  A. Critical work centers only

  B. Gateway work centers only

  C. Final assembly work centers only

  D. All work centers

  Correct Answer: A

  Rough-cut capacity planning (RCCP) is a technique that evaluates the feasibility of a master production schedule (MPS) by comparing the available capacity of key resources with the required capacity of the MPS. In a job shop environment, where products are made to order and have high variety and low volume, RCCP would typically review only the critical work centers to determine the ability to execute the plan. Critical work centers are those that have the greatest impact on the throughput, lead time, or cost of the products. They are usually the work centers that have the highest utilization, longest setup times, or most frequent bottlenecks. By focusing on the critical work centers, RCCP can simplify the capacity planning process and identify the potential problems or constraints that may affect the MPS. The other options, gateway work centers, final assembly work centers, and all work centers, are not as effective as critical work centers for RCCP in a job shop environment, as they may not reflect the true capacity requirements or constraints of the products.

  References: Rough Cut Capacity Planning (RCCP) - Definition, Example, and Benefits Rough Cut Capacity Planning (RCCP) - Meaning, Objectives, and Advantages Rough Cut Capacity Planning (RCCP) - Overview, Steps, and Example

• Question 120:

  An order winner during the growth stage of a product's life cycle is:

  A. variety.

  B. availability.

  C. dependability.

  D. price.

  Correct Answer: A

  An order winner is a product attribute that influences customers to choose one product over another. During the growth stage of a product's life cycle, the product has gained some market acceptance and awareness, and sales revenue

  usually grows exponentially. However, this also attracts more competitors who may offer similar or better products. Therefore, to maintain or increase market share, the product needs to differentiate itself from the competition by offering more

  variety. Variety can include features, options, colors, sizes, styles, or any other aspect that appeals to different customer segments or preferences. By offering more variety, the product can satisfy more customer needs and wants, and create

  a loyal customer base. Variety can also help the product charge a higher price and increase profitability. The other options, availability, dependability, and price, are not as effective as order winners during the growth stage, as they are more

  relevant for other stages of the product life cycle. Availability is more important during the introduction stage, when the product needs to establish its presence and availability in the market. Dependability is more important during the maturity

  stage, when the product faces intense competition and needs to retain customers by delivering consistent quality and performance. Price is more important during the decline stage, when the product faces declining demand and needs to

  reduce costs and prices to remain profitable.

  References:

  The Growth Stage Of The Product Life Cycle [Explained]

  Product Life Cycle - Definition, Stages, Usage

  The four stages of the product life cycle