APICS CPIM Online Practice Questions and Exam Preparation

APICS CPIM Online Questions & Answers

• Question 81:

  In Company XYZ, transaction-costing capability has been Integrated into the shop floor reporting system. A batch of 20 units was started in production. At the fourth operation, 20 units are reported as complete. At the fifth operation, 25 units are reported as complete. When all operations are complete, 20 units are checked into the stockroom. If the error at the fifth operation is undetected, which of the following conditions will be true?

  A. Stockroom inventory balance will be incorrect.
  B. Operator efficiency for the fifth operation will be overstated.
  C. Units in process will be understated.
  D. Work-in-process (WIP) cost will be understated.
  D. Work-in-process (WIP) cost will be understated.

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  Explanation/Reference:

  Work-in-process (WIP) cost is the total cost of the units that are partially completed in the production process. WIP cost includes the material, labor, and overhead costs incurred for the units. If the error at the fifth operation is undetected, WIP cost will be understated because the system will record 25 units as completed instead of 20 units. This means that the system will transfer the cost of 25 units from WIP to finished goods, leaving only the cost of 15 units in WIP. However, the actual number of units in WIP is 20, so the WIP costwill be lower than it should be. The other conditions will not be true if the error is undetected. Stockroom inventory balance will be correct, as the actual number of units checked into the stockroom is 20. Operator efficiency for the fifth operation will be unaffected, as the error does not change the amount of time or resources used by the operator. Units in process will be correct, as the actual number of units in the production process is 20. References: Work in Process (WIP) | APICS Dictionary Term of the Day, APICS CPIM 8 Planning and Inventory Management | ASCM

• Question 82:

  Which of the following is NOT the role that warehouses serve?

  A. Transportation consolidation
  B. Cubic space
  C. Product mixing
  D. Service
  B. Cubic space

• Question 83:

  What is done by individual worker who, instead of checking for defects, checks for errors that will cause defects?

  A. Successive check
  B. Self-check
  C. Source inspection
  D. Source correction
  C. Source inspection

• Question 84:

  A company implementing a localized multi-country strategy to increase market share should engage in which of the following actions?

  A. Sell different product versions in different countries under different brand names.
  B. Sell the same products under the same brand name worldwide.
  C. Locate plants on the basis of maximum location advantage.
  D. Use the best suppliers regardless of geographic location.
  A. Sell different product versions in different countries under different brand names.

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  Explanation/Reference:

  A localized multi-country strategy is a type of global strategy that involves adapting products, marketing, and operations to the specific needs and preferences of each country or region where the company operates. This strategy allows the company to increase its market share by appealing to the local customers and differentiating itself from the competitors. A localized multi-country strategy requires the company to sell different product versions in different countries under different brand names, as this reflects the high degree of customization and localization that the strategy entails. The other options are not consistent with a localized multi-country strategy, as they imply a low degree of adaptation and a high degree of standardization across the markets. Selling the same products under the same brand name worldwide is a global strategy that assumes universal customer preferences and seeks economies of scale. Locating plants on the basis of maximum location advantage is a transnational strategy that balances global integration and local responsiveness. Using the best suppliers regardless of geographic location is a sourcing strategy that does not necessarily reflect the degree of localization of the products or the marketing.

• Question 85:

  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.
  D. earlier Identification of shifts Incustomer preferences.

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  Explanation/Reference:

  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 Exam Content Manual, Module 1: Supply Chains and Strategy, Section 1.2: Customer Relationship Management, Subsection 1.2.1: Customer Relationship Management Concepts

• Question 86:

  The bill of material shows

  A. The components that go into making the parent
  B. The steps or process used to make the parent or the components
  C. Both A and B
  D. None of the above
  A. The components that go into making the parent

• Question 87:

  The message in which the planner must tell the MRP software of all actions taken that will influence the MRP records called

  A. Exception messages
  B. Transaction messages
  C. Bottom-up re-planning
  D. None of the above
  B. Transaction messages

• Question 88:

  The time spent In queue by a specific manufacturing job is determined by which of the following factors related to the order?

  A. Lot size
  B. Priority
  C. Setup time
  D. Run time
  B. Priority

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  Explanation/Reference:

  The time spent in queue by a specific manufacturing job is determined by the priority of the order. Priority is the relative importance or urgency of an order compared to other orders in the system. Priority can be assigned based on various criteria, such as due date, customer preference, profitability, or first-come-first-served. Priority determines the order in which jobs are processed at each workstation and affects the waiting time and flow time of each job. Higher priority jobs have shorter waiting times and lower priority jobs have longer waiting times. Priority can be used as a tool to manage the trade-offs between customer service, capacity utilization, and inventory levels.

  References : Managing Supply Chain Operations, Chapter 7: Scheduling and Sequencing, Section 7.2: Priority Rules CPIM Exam Content Manual, Module 6: Detailed Schedules, Section 6.2: Scheduling and Sequencing, Subsection 6.2.2: Priority Rules

• Question 89:

  A life cycle assessment (LCA) would be used to determine:

  A. the length of a long-term agreement.
  B. how an Item should be scheduled.
  C. environmental aspects and impacts.
  D. If risk pooling would reduce inventory investment.
  C. environmental aspects and impacts.

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  Explanation/Reference:

  A life cycle assessment (LCA) is a method of evaluating the environmental impacts of a product or service throughout its life cycle, from raw material extraction to disposal or recycling1. LCA can help to identify opportunities for reducing

  environmental impacts, improving resource efficiency, and enhancing customer value2. LCA is not used to determine the length of a long-term agreement, how an item should be scheduled, or if risk pooling would reduce inventory

  investment.

  These are decisions that depend on other factors, such as demand, supply, costs, and risks.

• Question 90:

  One advantage of adopting a supply network perspective Is that it:

  A. protects global markets.
  B. enhances understanding of competitive and cooperative forces.
  C. defines the market relationships and partnerships.
  D. encourages rivals to collaborate.
  B. enhances understanding of competitive and cooperative forces.

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  Explanation/Reference:

  One advantage of adopting a supply network perspective is that it enhances understanding of competitive and cooperative forces. A supply network perspective is a holistic view of the supply chain that considers the interdependencies and interactions among the various entities involved in the flow of materials, information, and money. A supply network perspective helps to identify the sources of value creation and capture, the opportunities and threats in the market, and the potential synergies and conflicts among the supply chain partners. A supply network perspective also helps to design and implement effective strategies and tactics to achieve competitive advantage and customer satisfaction. The other statements are not advantages of adopting a supply network perspective. Protecting global markets, defining market relationships and partnerships, and encouraging rivals to collaborate are possible outcomes or objectives of adopting a supply network perspective, but they are not the benefits of the perspective itself. References: Supply Network Perspective | APICS Dictionary Term of the Day, APICS CPIM 8 Planning and Inventory Management | ASCM