APICS APICS Certifications CPIM Questions & Answers

• Question 41:

  Exhibit:

  

  A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

  A. 100% service levels for B and C

  B. Customer B has higher service level

  C. Customer C has higher service level

  D. Customer B and C have same service level

  Correct Answer: B

  Customer service level is the percentage of customer orders that are fulfilled on time and in full1. A company that prioritizes customers A, B, and C, filling orders in that sequence, will have different impacts on the service levels for customers B and C, depending on the availability of stock and theorder quantities. Based on the table in the exhibit, customer B will have a higher service level than customer C, because customer B will receive all the ordered units for item 468 and item 617, while customer C will only receive partial units for item 468 and none for item 617. Customer C will also receive none of the ordered units for item 643, while customer B will receive some of them. Therefore, customer B will have a higher percentage of orders fulfilled on time and in full than customer C. References: Customer Service Level: Definition, Standards, Measuring | SupportYourApp

• Question 42:

  The primary consideration In maintenance, repair, and operating (MRO) supply systems typically is:

  A. order quantity.

  B. stockout costs.

  C. carrying costs.

  D. shelf life.

  Correct Answer: B

  Maintenance, repair, and operating (MRO) supply systems are essential for ensuring the availability and reliability of equipment and infrastructure used in production processes. MRO supplies include items such as spare parts, tools,

  lubricants, cleaning materials, and safety equipment. The primary consideration in MRO supply systems typically is stockout costs, which are the costs incurred when an item is not available when needed. Stockouts can cause production

  delays, equipment breakdowns, customer dissatisfaction, and lost sales opportunities. Therefore, it is important to maintain adequate inventory levels of MRO supplies to avoid stockouts and ensure uninterrupted operations. Order quantity,

  carrying costs, and shelf life are also important factors in MRO supply systems, but they are not the primary consideration. Order quantity is the amount of MRO supplies ordered at a time, which affects the ordering costs and the inventory

  levels. Carrying costs are the costs of holding MRO supplies in inventory, which include storage, handling, insurance, and obsolescence costs. Shelf life is the period of time that MRO supplies can be stored before they expire or deteriorate,

  which affects the inventory turnover and the waste disposal costs. These factors need to be balanced with the stockout costs to optimize the MRO supply systems.

  References:

  CPIM Part 2 Study Guide, Chapter 6: Inventory Management, Section 6.3: Inventory Management for Independent Demand Items

  What is maintenance, repair and operations | IBM, Section: Why should you care about MRO?

  Maintenance, Repair, and Operations/Overhaul (MRO) - A Complete Guide, Section: Understanding MRO

• Question 43:

  Reducing distribution network inventory days of supply will have which of the following Impacts?

  A. Increase turnovers and increase cash-to-cash cycle time.

  B. Increase turnovers and reduce cash-to-cash cycle time.

  C. Decrease turnovers and reduce cash-to-cash cycle time.

  D. Decrease turnovers and increase cash-to-cash cycle time.

  Correct Answer: B

  Inventory days of supply (IDS) is a measure of how long it takes for a company to sell its entire inventory. Reducing IDS means that the company is selling its inventory faster, which increases the inventory turnover ratio. Inventory turnover ratio is the number of times a company sells and replaces its inventory in a given period. A higher inventory turnover ratio indicates that the company is more efficient in managing its inventory and generating sales. Reducing IDS also means that the company is reducing the time between paying its suppliers and receiving payment from its customers, which reduces the cash-to-cash cycle time. Cash-to-cash cycle time is the number of days a company's cash is tied up in its operations. A lower cash-to-cash cycle time indicates that the company is more efficient in converting its inventory into cash and improving its liquidity. Therefore, reducing distribution network inventory days of supply will have the impact of increasing turnovers and reducing cash-to-cash cycle time. References: Gartner's Top Actions for Supply Chain Inventory Reduction Inventory Days Of Supply | Supply Chain KPI Library | Profit.co Maximizing Efficiency: Understanding Inventory Days of Supply in - oboloo

• Question 44:

  One of the most useful tools for analyzing the sustainable footprint is:

  A. process mapping.

  B. lean six sigma.

  C. SWOT analysis.

  D. ISO 9000.

  Correct Answer: A

  Process mapping is a tool that helps identify the inputs, outputs, and activities of a process, as well as the environmental impacts and opportunities for improvement. Process mapping can help reduce waste, energy consumption, emissions,

  and resource use, thereby improving the sustainable footprint of the process. Therefore, option A is correct. Option B is incorrect because lean six sigma is a methodology that combines lean principles and six sigma tools to eliminate waste

  and variation, but it does not necessarily focus on sustainability. Option C is incorrect because SWOT analysis is a tool that evaluates the strengths, weaknesses, opportunities, and threats of a business or a project, but it does not specifically

  analyze the environmental aspects. Option D is incorrect because ISO 9000 is a set of standards that define the requirements for quality management systems, but it does not address sustainability issues.

  References: CPIM Part 2 ontent Manual, Version 8.0, Section H: Quality, Continuous Improvement, and Technology, Subsection H.4:Sustainability, p. 86.

• Question 45:

  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.

  Correct Answer: B

  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 ontent Manual, Version 8.0, ASCM, 2021, p. 29. CPIM Part 2 Learning System, Version 8.0, Module 3, Section C

• Question 46:

  Which of the following statements characterizes a pull system In distribution management?

  A. Each warehouse makes its own replenishment decisions.

  B. It uses distribution requirements planning(DRP).

  C. It uses uniform performance measures.

  D. It uses fair-share allocation.

  Correct Answer: A

  A pull system in distribution management is a method of inventory replenishment that is driven by the actual demand of the customers, rather than by forecasts or schedules. In a pull system, each warehouse makes its own replenishment decisions based on the inventory level and the customer orders. A pull system reduces the risk of overstocking or understocking inventory, as it responds to the real-time demand fluctuations. A pull system also improves the efficiency and flexibility of the distribution network, as it eliminates the need for centralized planning and coordination. A pull system is suitable for products that have high demand uncertainty, low holding costs, or short lead times. References: Push vs. Pull Inventory Management Systems 2023 | Business.org, Push vs. pull: Inventory management for distribution businesses

• Question 47:

  Which of the following statements about demonstrated capacity Is true?

  A. It reflects the future load.

  B. It should be higher than rated capacity.

  C. It considers utilization and efficiency factors.

  D. It is determined from actual results.

  Correct Answer: D

  Demonstrated capacity is the actual output achieved by a resource or a system over a period of time, such as a day, a week, or a month. It is determined from actual results, such as production records, time studies, or historical data.

  Demonstrated capacity reflects the past performance, not the future load, of a resource or a system. It may be lower or higher than the rated capacity, which is the theoretical or design capacity of a resource or a system. Demonstrated

  capacity considers utilization and efficiency factors, such as machine availability, operator skills, product mix, quality issues, or maintenance schedules, that affect the actual output.

  References :

  Managing Supply Chain Operations, Chapter 5: Capacity Planning and Management, Section 5.2:

  Capacity Planning Decisions, page 132-133.

  Manufacturing Planning and Control for Supply Chain Management: The CPIM Reference, Second Edition, Chapter 6: Capacity Management, Section 6.2: Capacity Planning, page 156-157.

  CPIM 8.0 ontent Manual Preview, Module 5: Plan and Manage Supply, Section 5.1: Plan and Manage Capacity, page 9.

• Question 48:

  What activity is a useful element in the change process?

  A. Creating short-term wins

  B. Calculating a break-even point

  C. Performing a SWOT analysis

  D. Developing key performance indicators (KPIs)

  Correct Answer: A

  Creating short-term wins is a useful element in the change process because it helps to build momentum, motivate the team, and overcome resistance. Short-term wins are concrete achievements that demonstrate the benefits of the change and provide evidence that the efforts are paying off. They also help to create a sense of urgency and alignment among the stakeholders involved in the change process. Calculating a break-even point, performing a SWOT analysis, and developing key performance indicators (KPIs) are all important tools for planning and evaluating the change process, but they are not as effective as creating short-term wins in generating support and commitment for the change. References: Change Management: The Kotter Model, APICS CPIM 8 Planning and Inventory Management | ASCM

• Question 49:

  According to quality function deployment (QFD), customer needs are gathered through:

  A. employee suggestions.

  B. technical specifications.

  C. surveys.

  D. historical data.

  Correct Answer: C

  According to quality function deployment (QFD), customer needs are gathered through surveys. QFD is a methodology for translating customer requirements into product or service specifications by listening to the voice of the customer (VOC). Surveys are one of the methods for collecting VOC data, which can include customer preferences, expectations, problems, and feedback. Surveys can be conducted through various channels, such as interviews, questionnaires, focus groups, or online platforms. Surveys help to identify and prioritize the customer needs and wants, and to measure the customer satisfaction and loyalty.

  References: What is Quality Function Deployment (QFD)? | ASQ 3 2 CPIM Exam References - Association for Supply Chain Management

• Question 50:

  In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:

  A. reduced forecast variability.

  B. fewer customer order changes.

  C. fewer customer defections.

  D. earlier Identification of shifts Incustomer preferences.

  Correct Answer: D

  In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is earlier identification of shifts in customer preferences. CRM is a strategy that focuses on building and maintaining long-term relationships with customers by understanding their needs, preferences, and behaviors. CRM enables organizations to anticipate and respond to changes in customer demand, improve customer satisfaction and loyalty, and increase profitability and competitiveness. CRM also helps organizations to segment and target customers based on their value and potential, and to customize products and services accordingly. CRM involves the use of various tools and techniques, such as data collection and analysis, communication channels, feedback mechanisms, and loyalty programs. References Managing Supply Chain Operations, Chapter 4: Customer Relationship Management, Section 4.1: Introduction to Customer Relationship Management CPIM ontent Manual, Module 1: Supply Chains and Strategy, Section 1.2: Customer Relationship Management, Subsection 1.2.1: Customer Relationship Management Concepts