APICS CPIM Online Practice Questions and Exam Preparation

APICS CPIM Online Questions & Answers

• Question 71:

  The horizon for forecasts that are input to the sales and operations planning (SandOP) process should be long enough that:

  A. cumulative forecast deviation approaches zero.
  B. planned product launches can be incorporated.
  C. required resources can be properly planned.
  D. supply constraints can be resolved.
  C. required resources can be properly planned.

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  Explanation/Reference:

  The horizon for forecasts that are input to the SandOP process should be long enough that required resources can be properly planned. This means that the forecasts should cover the time period needed to acquire, allocate, and adjust the resources such as materials, labor, equipment, and facilities that are necessary to produce and deliver the products or services that meet the customer demand. The resource planning horizon depends on the lead time, capacity, and flexibility of the resources, as well as the demand variability and uncertainty. A longer horizon allows for more accurate and proactive resource planning, which can improve the efficiency, effectiveness, and profitability of the SandOP process

• Question 72:

  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
  D. Loss of intellectual property

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  Explanation/Reference:

  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 Exam Content Manual, Version 8.0, ASCM, 2021, p. 11. CPIM Part 2 Learning System, Version 8.0, Module 1, Section A, Topic 4.

• Question 73:

  A manufacturer has a primary assembly line supported by output from several subassembly lines. Which of the following scenarios would be the best argument for a multilevel master scheduling process?

  A. Low variation in aggregate subassembly demand
  B. High variation in aggregate subassembly demand
  C. Low variation in subassembly demand mix
  D. High variation in subassembly demand mix
  D. High variation in subassembly demand mix

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  Explanation/Reference:

  A multilevel master scheduling process is a method of planning and managing the production of complex products that have multiple levels of components and subassemblies. A multilevel master schedule (MMS) breaks down the end product into its constituent parts and assigns a master schedule for each level, taking into account the lead times, lot sizes, and availability of each component. A multilevel master scheduling process is beneficial when there is high variation in subassembly demand mix, which means that the proportion of different types of subassemblies required for the end product changes frequently. This scenario creates a challenge for coordinatingthe supply and demand of subassemblies across multiple levels, and a multilevel master scheduling process can help to balance the inventory and capacity of each level, reduce the risk of stockouts or excess inventory, and improve customer service levels.

• Question 74:

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

  A. variety.
  B. availability.
  C. dependability.
  D. price.
  A. variety.

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  Explanation/Reference:

  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

• Question 75:

  The ranking of jobs for the dispatch list is created through the application of which of the following priority rule?

  A. First come, first served
  B. Earliest operation due date
  C. Shortest process time
  D. All of the above
  D. All of the above

• Question 76:

  In a lean environment, the batch-size decision for planning "A" items would be done by:

  A. least total cost.
  B. min-max system.
  C. lot-for-lot (L4L).
  D. periodic order quantity.
  C. lot-for-lot (L4L).

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  Explanation/Reference:

  In a lean environment, the batch-size decision for planning "A" items would be done by lot-for-lot (L4L). L4L is an inventory management technique that orders exactly the quantity needed to meet the demand for each period. This minimizes the work in process, cycle time, and inventory holding costs. L4L is consistent with the lean principles of reducing batch sizes, eliminating waste, and responding to customer pull. The other options are not suitable for a lean environment, as they either order more than the demand (least total cost, min-max system, periodic order quantity) or incur more setup costs (least total cost, periodic order quantity).

• Question 77:

  is characterized by many variations in product design, process requirements and order quantities.

  A. Flow manufacturing
  B. Project manufacturing
  C. Intermittent manufacturing
  D. None of these
  C. Intermittent manufacturing

• Question 78:

  Based on the values reported in the table below, what is the inventory turnover?

  

  A. 0.50
  B. 0.58
  C. 1.73
  D. 2.60
  C. 1.73

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  Explanation/Reference:

  Inventory turnover is a ratio that measures how many times a company sells and replaces its inventory in a given period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory value. A higher inventory turnover indicates a more efficient use of inventory, while a lower turnover implies excess inventory or poor sales.

  Based on the values reported in the table, we can calculate the inventory turnover as follows: Inventory Turnover = COGS / Average Inventory Value = $260,000 / $150,000 = 1.73

  Therefore, the correct answer is C.

• Question 79:

  At the MRP planning level, the process of priority plans must be checked against available capacity is called

  A. Master Production schedule (MPS)
  B. Capacity Requirements planning (CRP)
  C. Production activity control (PAC)
  D. Manufacturing Planning and control function (MPC)
  B. Capacity Requirements planning (CRP)

• Question 80:

  The master schedule is an Important tool in the sales and operations planning (SandOP) process because it:

  A. represents the forecast before changes are made in SandOP.
  B. represents the forecast with less detail.
  C. balances supply and demand at the product mix level.
  D. balances supply and demand at the sales volume level.
  C. balances supply and demand at the product mix level.

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  Explanation/Reference:

  The master schedule is an important tool in the sales and operations planning (SandOP) process because it balances supply and demand at the product mix level. The master schedule is a detailed plan that specifies the quantity and timing of each end item or product family to be produced. It is derived from the aggregate production plan, which is the output of the SandOP process. The master schedule helps to translate the aggregate plan into specific product requirements and to allocate the available capacity to meet the demand. The master schedule also provides input to the material requirements planning (MRP) and capacity requirements planning (CRP) systems, which further refine the production plan at the component and resource levels. The other statements are not true about the master schedule. The master schedule does not represent the forecast before changes are made in SandOP, as the forecast is an input to the SandOP process, not an output. The master schedule does not represent the forecast with less detail, as the master schedule is more detailed than the forecast, which is usually expressed in aggregate terms. The master schedule does not balance supply and demand at the sales volume level, as the sales volume level is the level of the aggregate production plan, not the master schedule.