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CPIM-8.0 Certified in Planning and Inventory Management (CPIM 8.0) Questions and Answers

Questions 4

One of the benefits of Integrating a poka-yoke into the production process is that it can be used to:

Options:

A.

facilitate mixed-model scheduling.

B.

prevent defects.

C.

Improve machine utilization.

D.

enable one-piece flow.

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Questions 5

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

Options:

A.

Commodities

B.

Standard products

C.

Items of small value

D.

Made-to-order (MTO) items

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Questions 6

Which of the following factors is used to determine safety stock?

Options:

A.

Number of customers

B.

Available capacity

C.

Forecast error distribution

D.

Time between customer orders

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Questions 7

An effective approach to projecting requirements for materials with long lead times Includes which of the following options?

Options:

A.

Initiate a multilevel master schedule.

B.

Use phantom bills of materials (BOMs).

C.

Increase the level of safety stock.

D.

Decrease the planning horizon.

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Questions 8

When designing a production cell, which of the following items would be the most important consideration?

Options:

A.

Theunit per hour requirement for the production cell to meet the sales forecast

B.

Theflow of materials into the cell and sequencing of operations to minimize total cycle time

C.

Theoutput rate for the first operation and move time after the last workstation

D.

Thetakt time requirement for each operator to meet the monthly production goals of theplant

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Questions 9

Which of the following actions will result In lower inventory levels?

Options:

A.

Level load the master production schedule (MPS).

B.

Reduce replenishment lead times.

C.

Increase customer service level.

D.

Decentralize inventory locations.

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Questions 10

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

Options:

A.

least total cost.

B.

min-max system.

C.

lot-for-lot (L4L).

D.

periodic order quantity.

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Questions 11

Which of the following statements best characterizes enterprise resources planning (ERP) systems?

Options:

A.

They track activity from customer order through payment.

B.

They are expensive but easy to implement.

C.

They provide real-time planning and scheduling, decision support, available-to-promise (ATP), and capable-to-promise (CTP) capabilities.

D.

They are used for strategic reporting requirements.

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Questions 12

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?

Options:

A.

80

B.

120

C.

160

D.

200

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Questions 13

The question below is based on the following information:

Beginning inventory = 43Week 1Week 2Week 3

Forecast202020

Customer orders221710

Projected on-hand

Master production schedule (MPS)80

Available-to-promise (ATP)

What is the largest customer order that could be accepted for delivery at the end of week 3 without making changes to the master production schedule (MPS)?

Options:

A.

74

B.

63

C.

61

D.

31

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Questions 14

The cost accountant has discovered a consistent overage in actual run time for one operation. This information should be sent first to the:

Options:

A.

product manager to increase the selling price of the product.

B.

quality manager to add a new quality measurement to the operation.

C.

production supervisor to review and explain the overage.

D.

the engineering manager to evaluate the run time for the routing.

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Questions 15

Which of the following criteria is used to determine safety stock in a distribution center (DC)?

Options:

A.

Economic order quantity(EOQ)

B.

Seasonal index value

C.

Alpha factor level

D.

Probability of stocking out

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Questions 16

A statistical safety stock calculation would be appropriate for:

Options:

A.

components used in multiple end items.

B.

new products at time of introduction.

C.

end items with stable demand.

D.

supply-constrained raw materials.

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Questions 17

Which of the following actions hinders the transition from a push system to a pull system?

Options:

A.

Using standardized containers

B.

Using work orders as a backup

C.

Introducing kanban cards as authorization for material movement

D.

Maintaining a constant number of kanban cards during minor changes in the level of production

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Questions 18

A company assembles kits of hand tools after receipt of the order from distributors and uses two-level master scheduling. The appropriate levels of detail for the forecasts that are input to master scheduling would be total number of kits and:

Options:

A.

each unique tool.

B.

percentage of total for each tool.

C.

raw material requirements.

D.

specific kit configurations.

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Questions 19

A reduction In purchased lot sizes will reduce which of the following items?

Options:

A.

Inventory levels

B.

Frequency of orders

C.

Reorder points (ROPs)

D.

Setuptimes

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Questions 20

A plant uses a level production strategy due to the high costs of hiring and letting go of skilled employees. The constrained resource is due to be upgraded in the fourth month of the planning horizon, and that will reduce capacity for that month by 17%.

Which of the following actions would be appropriate in this situation to maintain current levels of customer service and gross margin?

Options:

A.

Increase planned production for the next three periods.

B.

Defer the upgrade to a period beyond the planning time fence.

C.

Increase planned production from the fifth period on.

D.

Defer the upgrade to the period in which the highest stock level is planned.

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Questions 21

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?

Options:

A.

Mixed-model

B.

Matrix

C.

Synchronized

D.

Line balancing

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Questions 22

A company can easily change Its workforce, but inventory carrying costs are high. Which of the following strategies would be most appropriate during times of highly fluctuating demand?

Options:

A.

Produceto backorders

B.

Produceat a constant level

C.

Produceto the sales forecast

D.

Produceto demand

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Questions 23

For a company that uses first in, first out (FIFO) inventory accounting, the actual use in production of a recently arrived shipment of more expensive components rather than lower-cost components

previously received will have which of the following results?

Options:

A.

Higher cost of goods sold (COGS)

B.

Lower COGS

C.

No change to COGS

D.

A violation of FIFO rules

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Questions 24

Which of the following statements about demonstrated capacity Is true?

Options:

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.

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Questions 25

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

Options:

A.

variety.

B.

availability.

C.

dependability.

D.

price.

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Questions 26

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

Options:

A.

production volume.

B.

master production schedule (MPS).

C.

sales and operations plan.

D.

forecast.

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Questions 27

What is the total load requirement for this work center based on the following data?

Options:

A.

1.326

B.

1.525

C.

1,533

D.

2,880

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Questions 28

The trade-off of increasing safety stock to improve customer fill rate would be a decrease in:

Options:

A.

pipeline inventory.

B.

transportation costs.

C.

inventory turns.

D.

sales revenue.

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Questions 29

What is the main negative effect of changing the due dates of open orders?

Options:

A.

The schedule information becomes inaccurate.

B.

The customer service level decreases.

C.

It leads to "nervousness" in the schedule.

D.

The schedule does not support demand.

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Questions 30

Which of the following statements is true about total productive maintenance (TPM)?

Options:

A.

It uses statistical tools.

B.

It is part of the business strategy.

C.

It influences the product design process.

D.

It minimizes unscheduled breakdowns.

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Questions 31

Which of the following attributes describes a company with a global strategy?

Options:

A.

Ituses the same basic competitive style worldwide and focuses efforts on buildingglobal brands.

B.

Itcustomizes the basic competitive style to fit markets but focuses efforts on building global brands.

C.

Itcoordinates major strategic decisions worldwide but gives country managers wide strategy-making latitude.

D.

Itoperates plants in many host countries and uses decentralized distribution.

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Questions 32

Forecast error typically triggers forecast revision when it is:

Options:

A.

used in computing the tracking signal.

B.

associated with the Introduction stage of the product life cycle.

C.

continually increasing.

D.

caused by random variation.

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Questions 33

A planner has chosen to increase the order point for a raw material. Which of the following costs is most likely to increase?

Options:

A.

Carrying

B.

Ordering

C.

Landed

D.

Product

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Questions 34

In which of the following situations would you use an X-bar chart?

Options:

A.

Track the number of defects that are found in each unit.

B.

Measure the difference between the largest and the smallest in a sample.

C.

Determine the average value of a group of units.

D.

Estimate a subgroup variation.

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Questions 35

Based on the above table, calculate the mean absolute deviation (MAD).

Options:

A.

-25

B.

6.25

C.

18.75

D.

20

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Questions 36

In preparing for a facility location decision, proximity to suppliers would be classified as which kind of criteria?

Options:

A.

Service level requirements

B.

Future flexibility factors

C.

Access to transportation

D.

Cost factors

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Questions 37

A logistics manager Is faced with delivering an order via rail or truck. Shipping via rail costs S300 and takes 14 days. Shipping via truck costs $600 and takes 3 days. If the holding cost is $40 per day, what is the cost to deliver the order?

Options:

A.

$340for rail,$600 for truck

B.

$340for rail.$720 for truck

C.

$860for rail,$720 for truck

D.

$860for rail.$600 for truck

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Questions 38

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

Options:

A.

process mapping.

B.

lean six sigma.

C.

SWOT analysis.

D.

ISO 9000.

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Questions 39

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

Options:

A.

political factors.

B.

interest rates.

C.

substitute products.

D.

sociocultural forces.

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Questions 40

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

Options:

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.

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Questions 41

Which of the following tools is used to evaluate the impact that a production plan has on capacity?

Options:

A.

Demand time fence (DTF)

B.

Bill of resources

C.

Product routing

D.

Safety capacity

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Questions 42

The costs provided in the table below are associated with buying a quantity larger than immediately needed. What Is the total landed cost based on this table?

Cost CategoryCost

Custom fees$125

Freight$700

Warehouse rent$200

Matenal cost$500

Options:

A.

$825

B.

$1,325

C.

$1,400

D.

$1,525

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Questions 43

A low-cost provider strategy works best when which of the following conditions are met?

Options:

A.

Price competition among rivals is similar.

B.

Buyers are more price sensitive.

C.

There are many ways to achieve product differentiation.

D.

There are few industry newcomers.

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Questions 44

In the design and development of a manufacturing process, process engineers would most likely be responsible for decisions relating to:

Options:

A.

lead times.

B.

production capacity.

C.

product reliability.

D.

routing sequences.

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Questions 45

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

Options:

A.

reduced forecast variability.

B.

fewer customer order changes.

C.

fewer customer defections.

D.

earlier Identification of shifts Incustomer preferences.

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CPIM |

Exam Code: CPIM-8.0
Exam Name: Certified in Planning and Inventory Management (CPIM 8.0)
Last Update: Apr 21, 2024
Questions: 150
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