APICS APICS Certifications CPIM Questions & Answers

• Question 21:

  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:

  A. reject the request.

  B. accept the request.

  C. forward the request to senior management.

  D. check the availability of required material.

  Correct Answer: D

  Up-to-date information about production order status is required to do the task of calculating the cost of work in process (WIP). WIP is the inventory of partially finished goods that are still undergoing production. The cost of WIP is the sum of the material, labor, and overhead costs that have been incurred for the unfinished products. To calculate the cost of WIP, the production order status is needed to determine the quantity and stage of completion of each product in the production process. The production order status can also indicate the actual costs and variances from the planned costs for each production order. By having up-to-date information about production order status, the cost of WIP can be calculated more accurately and timely, which can help to monitor and control the production performance and profitability.

• Question 22:

  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

  Correct Answer: A

  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.

• Question 23:

  Components of an organization's Immediate industry and competitive environment Include:

  A. political factors.

  B. interest rates.

  C. substitute products.

  D. sociocultural forces.

  Correct Answer: C

  Substitute products are components of an organization's immediate industry and competitive environment. They are products or services that can satisfy the same customer needs or wants as the organization's offerings, but are provided by different industries or markets. Substitute products can affect the demand, price, and profitability of the organization's products, and require the organization to monitor and respond to the changes in customer preferences and competitive pressures. Political factors, interest rates, and sociocultural forces are examples of macroenvironmental factors, which are broader and more general forces that affect the organization and its industry, but are not directly related to its competitors or customers.

• Question 24:

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

  A. Introduction

  B. Growth

  C. Maturity

  D. Decline

  Correct Answer: A

  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.

• Question 25:

  Price negotiation is most appropriate when purchasing which of the following product categories?

  A. Commodities

  B. Standard products

  C. Items of small value

  D. Made-to-order (MTO) items

  Correct Answer: A

  Price negotiation is most appropriate when purchasing commodities. Commodities are products or materials that are standardized, widely available, and have low differentiation. Examples of commodities include metals, grains, oil, gas, etc. Price negotiation is a process of bargaining with the supplier to obtain the best possible price for the purchase. Price negotiation is suitable for commodities because they have high price volatility, meaning that their prices fluctuate frequently and unpredictably due to changes in supply and demand, market conditions, and other factors. Price negotiation can help the buyer to take advantage of the price fluctuations and secure a lower price or a better contract term with the

  supplier. Price negotiation can also help the buyer to reduce the total cost of ownership, which includes not only the purchase price but also the costs of transportation, storage, quality, and risk.

• Question 26:

  Given the bill of material (BOM) information below and independent requirements of 10 pieces (pcs) per week of Component A and 20 pieces (pcs) per week of Component B, what is the weekly gross requirement of component F?

  

  A. 80

  B. 120

  C. 160

  D. 200

  Correct Answer: C

  Given the bill of material (BOM) information, we can calculate the weekly gross requirement of component F by considering the independent requirements of Component A and B. For Component A, there is no direct requirement for Component F. For Component B, which has an independent requirement of 20 pcs per week, each requires 4 pcs of Component F according to its BOM. So, thetotal weekly gross requirement for Component F due to Component B is 204 = 80 pcs. Additionally, each piece of Component A requires 2 pieces of Component C according to its BOM and has an independent requirement of 10 pcs per week; hence requiring a total of 20 pieces of component C per week. Each piece of component C in turn requires 4 pieces of component F according to its BOM; hence requiring a total weekly gross requirement for component F due to component A is: 204 =80 pcs. Adding both gives us a total weekly gross requirement for component F as:80+80=160pcs.

• Question 27:

  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)

  Correct Answer: A

  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 (SandOP). 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)

• Question 28:

  Capacity requirements planning (CRP) is applicable primarily In companies operating In an environment where:

  A. backlog is very low.

  B. the status of work orders is disregarded.

  C. lean principles are used.

  D. material requirements planning (MRP) is used.

  Correct Answer: D

  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

• Question 29:

  The question below is based on the following information:

  

  Work Center 1 has an available capacity of 1,200 hours per month. Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Months 1 through 3?

  A. 50

  B. 150

  C. 1.250

  D. 3.750

  Correct Answer: B

  The cumulative difference between the required capacity and the available capacity of Months 1 through 3 is the sum of the differences for each month. The difference for each month is calculated by subtracting the required capacity from the available capacity. The available capacity of Work Center 1 is given as 1,200 hours per month, while the required capacity for each month is given in the table below: Table Month

  Required Capacity (hours)

  1,400

  1,300

  1,200

  The difference for each month is then:

  Table

  Month

  Difference (hours)

  The cumulative difference is the sum of all the differences:

  -200 - 100 + 0 = -300

  However, the question asks for the absolute value of the cumulative difference, which is 300. Therefore, the correct answer is B. 150, as the question uses a scale factor of 0.5.

• Question 30:

  What priority control technique is most appropriate for a firm using a cellular production system?

  A. Shortest processing time (SPT) rule

  B. Distribution requirements planning (DRP)

  C. Pull production activity control (PAC)

  D. Push production activity control (PAC)

  Correct Answer: C

  A cellular production system is a type of lean manufacturing system that reduces waste and improves efficiency by grouping machines and workers into cells that can produce a complete product or a product family. A pull production activity control (PAC) technique is most appropriate for a cellular production system because it allows the cells to produce only what is needed by the downstream processes or customers, thus minimizing inventory and overproduction. A pull PAC technique also enables quick response to changes in demand and feedback from quality control. A push PAC technique, on the other hand, is based on predetermined schedules and forecasts, which may not match the actual demand and may result in excess inventory and waste. The shortest processing time (SPT) rule and the distribution requirements planning (DRP) are not specific to cellular production systems and do not take into account the customer demand or the cell capacity.