APICS APICS Certifications CPIM Questions & Answers

• Question 31:

  The primary outcome of frequent replenishments in a distribution requirements planning (DRP) system is that:

  A. lead times to customers decrease.

  B. transportation costs decrease.

  C. the level of required safety stock is reduced.

  D. more efficient load consolidation occurs.

  Correct Answer: C

  The primary outcome of frequent replenishments in a distribution requirements planning (DRP) system is that the level of required safety stock is reduced. Safety stock is the extra inventory that is held to protect against demand uncertainty or supply variability. Frequent replenishments mean that the inventory is replenished more often and in smaller quantities, which reduces the risk of stockouts and the need for safety stock. Frequent replenishments also improve the inventory visibility and accuracy, which enable better demand forecasting and inventory planning. By reducing the safety stock, the company can lower its inventory carrying costs, free up working capital, and increase its inventory turnover. The other options are not correct, as they are not the primary outcome of frequent replenishments, but rather possible benefits or drawbacks of frequent replenishments, depending on the situation:

  Lead times to customers decrease: This may or may not be true, depending on the distance between the distribution centers and the customers, the transportation mode and frequency, and the customer service level. Frequent replenishments may reduce the lead times if the distribution centers are closer to the customers and the transportation is fast and reliable. However, frequent replenishments may also increase the lead times if the distribution centers are far from the customers and the transportation is slow and infrequent. Transportation costs decrease: This may or may not be true, depending on the transportation mode, distance, and volume. Frequent replenishments may reduce the transportation costs if the transportation mode is economical, the distance is short, and the volume is high. However, frequent replenishments may also increase the transportation costs if the transportation mode is expensive, the distance is long, and the volume is low.

  More efficient load consolidation occurs: This is unlikely to be true, as frequent replenishments usually mean smaller shipments that are less likely to fill the capacity of the transportation vehicles. Load consolidation is the process of combining multiple shipments into one larger shipment to optimize the transportation efficiency and reduce the transportation costs. Frequent replenishments may reduce the opportunities for load consolidation and increase the transportation inefficiency and costs.

• Question 32:

  Information regarding a major new customer is received from sales. The company's most appropriate initial response would be to adjust the:

  A. production volume.

  B. master production schedule (MPS).

  C. sales and operations plan.

  D. forecast.

  Correct Answer: C

  The sales and operations plan (SandOP) is the most appropriate level to adjust when a major new customer is received from sales. The SandOP is a cross-functional process that aligns the demand and supply plans with the business strategy and financial goals. It also provides the basis for the masterproduction schedule (MPS), which is a more detailed and disaggregated plan for specific products or families. Adjusting the production volume or the forecast would not be sufficient to account for the impact of the new customer on the overall business objectives and resources.

• Question 33:

  Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?

  A. Decreased fixed assets

  B. Decreased retained earnings

  C. Increased accounts receivable

  D. Increased intangible assets

  Correct Answer: A

  Third-party logistics (3PL) services are external providers that handle various supply chain functions for a firm, such as transportation, warehousing, inventory management, and order fulfillment. By outsourcing these functions to a 3PL, a firm can reduce its investment in fixed assets, such as trucks, trailers, warehouses, and equipment. This can improve the firm's liquidity and return on assets ratios, as well as lower its depreciation and maintenance costs. However, usinga 3PL does not necessarily affect the firm's retained earnings, accounts receivable, or intangible assets, which are influenced by other factors, such as profitability, sales, and goodwill.

• Question 34:

  A company has a demand for 30 units of A, 40 units of B, and 50 units of C. These products are scheduled to run daily in batches of 10 as follows: ABC, ABC, ABC, CBC. What is this scheduling

  technique called?

  A. Mixed-model

  B. Matrix

  C. Synchronized

  D. Line balancing

  Correct Answer: A

  Mixed-model scheduling is a technique that allows multiple products to be produced on the same assembly line without changeovers, and then sequences those products in a way that smoothes the demand for upstream components. In this

  case, the company is using mixed-model scheduling to produce three different products (A, B, and C) on the same line, and then alternating them in a pattern that minimizes the variation in the workload and the inventory levels. The other

  options are not correct because:

  Matrix scheduling is a technique that assigns tasks to workers based on their skills and availability.

  Synchronized scheduling is a technique that coordinates the production and delivery of materials and components to match the demand of the final assembly.

  Line balancing is a technique that distributes the workload evenly among the workers or machines on a production line.

  References: 1 Create Mixed Model Flow in 5 Steps | Industrial Equipment News 2 Mixed Model Scheduling - Mountain Home Academy 3 Matrix Scheduling - an overview | ScienceDirect Topics 4 Synchronized Scheduling - an overview |

  ScienceDirect Topics 5 Line Balancing - an overview | ScienceDirect Topics

• Question 35:

  Which of the following items does the master scheduler have the authority to change in the master scheduling process?

  A. Product mix

  B. Aggregate volume

  C. Engineering change effectivity date

  D. Customer order quantities

  Correct Answer: A

  The master scheduler has the authority to change the product mix in the master scheduling process. The product mix is the combination and proportion of different products or product families that the company offers to its customers. The

  master scheduler can adjust the product mix based on the customer demand, the production capacity, the inventory levels, and the strategic objectives of the company. The master scheduler can also use the product mix to balance the

  demand and supply, to optimize the resource utilization, and to maximize the profitability. The other options are not correct, as they are items that the master scheduler does not have the authority to change in the master scheduling process,

  but rather inputs or constraints that the master scheduler has to follow or consider:

  Aggregate volume is the total quantity of products or product families that the company plans to produce and deliver in a given period. Aggregate volume is determined by the sales and operations planning (SandOP) process, which involves the

  senior management and the functional managers of the company. The master scheduler has to align the master production schedule (MPS) with the aggregate volume, and cannot change it without the approval of the SandOP team.

  Engineering change effectivity date is the date when a change in the design or specification of a product or a component becomes effective. Engineering change effectivity date is determined by the engineering department, which is

  responsible for the product development and innovation. The master scheduler has to incorporate the engineering change effectivity date into the MPS, and cannot change it without the approval of the engineering department.

  Customer order quantities are the amounts of products or product families that the customers order from the company. Customer order quantities are determined by the market demand and the customer preferences. The master scheduler

  has to satisfy the customer order quantities as much as possible, and cannot change them without the approval of the customers or the sales and marketing department.

  References :

  [CPIM Part 2 - Section A - Topic 1 - Sales and Operations Planning]

  Master Production Schedule (MPS)

  Product Mix

  Aggregate Planning

  Engineering Change Management

  Customer Order Management

• Question 36:

  We have observed the inventory system does not handle plastic parts well." What should be added to the problem statement to make it more useful?

  A. Measurements that help describe the problem

  B. Guidance to which problem-solving tools should be used

  C. Criteria for selecting the improvement team

  D. Description of who is responsible for the problem

  Correct Answer: A

  A problem statement is a concise description of an issue to be addressed or a condition to be improved upon. It identifies the gap between the current state and the desired state of a process or a system. A good problem statement should

  include measurements that help describe the problem, such as the magnitude, frequency, location, and impact of the problem. These measurements can help quantify the problem and provide a baseline for improvement. The other options

  are not essential for a problem statement, but rather for the subsequent steps of problem-solving, such as selecting tools, forming teams, and assigning responsibilities.

  References:

  CPIM Part 2 - Section B - Topic 1 - Quality and Continuous Improvement]

  How to Write a Problem Statement

• Question 37:

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

  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.

  Correct Answer: C

  An assignable cause of variation is a source of variation that is intermittent, not predictable, and identifiable. It is also called a special cause of variation. An assignable cause of variation affects the process performance in an unexpected and non-random way, and it can be eliminated or controlled by finding and correcting the specific cause1. An example of an assignable cause of variation in process performance is incorrect setup of a machine by the operator. This means that the operator did not follow the standard procedure or specification for setting up the machine, which may result in defective or nonconforming products or materials. This cause of variation can be identified and corrected by checking the setup instructions, training the operator, or implementing a setup verification system.

  References: Assignable Cause - isixsigma.com 4 2 Process Capability Analysis - an overview | ScienceDirect Topics 5 3 CPIM Exam References - Association for Supply Chain Management

• Question 38:

  Which of the following conditions is most likely to result in planned production that is greater than the total demand over the sales and operations planning (SandOP) horizon for a product family that is made to stock?

  A. An increase in the customer service level is planned for the product family.

  B. New models are being added to the product family.

  C. Planned ending inventory for the product family is less than the beginning inventory.

  D. There is a long-term upward trend in demand for the product family.

  Correct Answer: A

  Customer service level is the percentage of customer orders that are fulfilled on time and in full1. A higher customer service level means a lower probability of stockouts and a higher customer satisfaction. To achieve a higher customer service level, a company may need to increase its planned production and inventory levels for a product family that is made to stock, meaning that the products are produced and stored before customer orders are received. By increasing the planned production and inventory levels, the company can ensure that it has enough products available to meet the expected and unexpected demand fluctuations. Therefore, an increase in the customer service level is most likely to result in planned production that is greater than the total demand over the SandOP horizon for a product family that is made to stock. Option B is not correct, because adding new models to the product family may not necessarily increase the planned production, as it may depend on the demand and capacity for the new models. Option C is not correct, because having a lower planned ending inventory than the beginning inventory means that the company is reducing its inventory levels over the SandOP horizon, which may result in lower planned production and lower customer service level. Option D is not correct, because a long-term upward trend in demand for the product family may not require a higher planned production than the total demand, as the company may adjust its production rate to match the demand rate over the SandOP horizon. References: Customer Service Level: Definition, Standards, Measuring | SupportYourApp

• Question 39:

  A company's primary performance objective Is flexibility. Which of the following measurements is most important?

  A. Labor productivity

  B. Schedule adherence

  C. Machine changeover time

  D. Cycle time

  Correct Answer: C

  Flexibility is the ability of a process or system to adapt to changes in customer demand, product mix, or production volume. A flexible process can respond quickly and efficiently to these changes, minimizing disruptions and costs. One of the key measurements of flexibility is machine changeover time, which is the time required to switch a machine or equipment from producing one type of product to another. A shorter machine changeover time means a higher level of flexibility, as the process can accommodate different products or orders without wasting time or resources. This aligns with CPIM's focus on plan, manage, and execute detailed schedules and manage quality, continuous improvement, and technology. References: The concepts are covered in detail in Module 5: Detailed Scheduling and Planning (1 and Module 6: Quality, Continuous Improvement, and Technology (2. You can also find more information about flexibility and machine changeover time from these sources: 3, 4, and 5.

• Question 40:

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

  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.

  Correct Answer: C

  Improvements in an input/output control (I/O control) system will most likely lead to a reduction in queue size and queue time. An I/O control system is a method of managing the flow of work orders in a production system by matching the input rate to the output rate. The input rate is the number of work orders that are released to the shop floor in a given period. The output rate is the number of work orders that are completed and shipped to the customers in a given period. An I/O control system aims to keep the input rate equal to the output rate, or slightly lower, to avoid overloading the system and creating excess inventory. By improving the I/O control system, the production system can achieve a smoother and more balanced flow of work orders, which reduces the queue size and queue time at each work center. Queue size is the number of work orders that are waiting to be processed at a work center. Queue time is the amount of time that a work order spends in the queue before being processed. A reduction in queue size and queue time can improve the production efficiency, quality, and flexibility, as well as the customer service and satisfaction. The other options are not correct, as

  they are not the most likely outcomes of improvements in an I/O control system, but rather possible effects of other factors or methods:

  Flattened bills of material (BOMs) are the result of simplifying the product structure and reducing the number of components or levels in a BOM. Flattened BOMs can reduce the complexity and lead time of the production process, but they are

  not directly related to the I/O control system.

  A change in operation sequencing is the result of altering the order or priority of the work orders or operations in a production system. A change in operation sequencing can affect the production flow and capacity, but it is not necessarily

  caused by the I/O control system.

  Fewer engineering change notifications are the result of minimizing the changes in the product design or specification during the production process. Fewer engineering change notifications can reduce the disruption and cost of the production

  process, but they are not directly related to the I/O control system.

  References :

  [CPIM Part 2 - Section A - Topic 2 - Capacity Planning]

  Input/Output Control | SpringerLink

  Input/Output Control - an overview | ScienceDirect Topics

  Input/Output Control - InventoryOps.com