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APICS CPIM-8.0 Dumps

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Total 150 questions

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

Question 1

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

Question 2

When starting an external benchmarking study, a firm must first:

Options:

A.

determine the metrics which will be measured and compared.

B.

identify the target firms with which to benchmark against.

C.

understand its own processes and document performance.

D.

determine its areas of weakness versus the competition's.

Question 3

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

Question 4

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.

Question 5

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

Question 6

Which of the following methods places a replenishment order when the quantity on hand falls below a predetermined level?

Options:

A.

Min-max system

B.

Fixed order quantity

C.

Periodic review

D.

Available-to-promlse (ATP)

Question 7

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

Options:

A.

Lot size

B.

Priority

C.

Setup time

D.

Run time

Question 8

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

Options:

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.

Question 9

The primary purpose for engaging in cycle count activities is to:

Options:

A.

eliminate the need for a traditional physical inventory count.

B.

more frequently reconcile the actual on-hand and system on-hand for items.

C.

smooth out the tasks of counting inventory throughout the fiscal year.

D.

improve material handling processes and reduce or eliminate errors.

Question 10

Which of the following statements is true about the meantime between failures (MTBF) measure?

Options:

A.

It is used for non-repairable products.

B.

An increase in MTBF is proportional to anincrease inquality.

C.

It is a useful measure of reliability.

D.

It is the same as operating life or service life.

Question 11

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 (S&OP) horizon for a product family that is

made to stock?

Options:

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.

Question 12

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

Question 13

Which of the following outcomes Is a benefit of mixed-model scheduling?

Options:

A.

Increased inventory

B.

Improved demand response

C.

Fewer setups

D.

Fewer material shortages

Question 14

What activity is a useful element in the change process?

Options:

A.

Creating short-term wins

B.

Calculating a break-even point

C.

Performing a SWOT analysis

D.

Developing key performance indicators (KPIs)

Question 15

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

Question 16

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

Options:

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.

Question 17

Which of the following actions best supports a company's strategic focus on delivery speed to improve competitive advantage?

Options:

A.

Maintaining high-capacity utilization

B.

Developing flexible operations

C.

Cross-training workers

D.

Implementing rapid process improvements

Question 18

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

Question 19

In which of the following phases of the product life cycle is product price most effective in influencing demand?

Options:

A.

Introduction

B.

Growth

C.

Maturity

D.

Decline

Question 20

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?

Options:

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

Question 21

Which of the following factors typically would distort a sales forecast that is based solely on shipment history?

Options:

A.

Material shortages

B.

Labor rate changes

C.

Currency exchange rates

D.

Customer demands

Question 22

A company that uses concurrent engineering is likely to experience which of the following outcomes in the first period of a product's life cycle?

Options:

A.

Fewer product design changes

B.

An increase in obsolete inventory

C.

More accurate forecasting

D.

Conflicts between purchasing and engineering

Question 23

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?

Options:

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.

Question 24

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

Options:

A.

protects global markets.

B.

enhances understanding of competitive and cooperative forces.

C.

defines the market relationships and partnerships.

D.

encourages rivals to collaborate.

Question 25

Which of the following methods would be appropriate for forecasting the demand for a product family when there is a significant trend and seasonality in the demand history?

Options:

A.

Econometric models

B.

Computer simulation

C.

Time series decomposition

D.

Weighted moving average

Question 26

A work center has 3 machines that are all run at the same time with a single worker. The work center has an efficiency of 75% and a utilization of 100%. What is the work center's capacity in standard hours for an 8-hour shift?

Options:

A.

6 hours

B.

8 hours

C.

18 hours

D.

24 hours

Question 27

A firm that currently produces all items to stock is implementing the concept of postponement in all new product designs. Which of the following outcomes is most likely to result?

Options:

A.

Product variety will decrease.

B.

Sales volume per product family will increase.

C.

Number of finished items stocked will decrease.

D.

Number of component items stocked will increase.

Question 28

Given the information below, reducing which measure by 10% would contribute most to shortening the cash-to-cash cycle time?

Options:

A.

Accounts receivable

B.

Inventory value

C.

Accounts payable

D.

Cost of capital

Question 29

Management should support investments in new process technologies that:

Options:

A.

require minimal changes in existing systems, procedures, and skills.

B.

have been recommended by technical experts and equipment suppliers.

C.

provide significant cost-reduction opportunities for the company's current products.

D.

provide long-term competitive advantage with acceptable financial risk.

Question 30

If fixed costs are §200,000 and 20,000 units are produced, a unit's fixed cost is §10. This is an example of:

Options:

A.

variable costing.

B.

activity-based costing (ABC).

C.

absorption costing.

D.

overhead costing.

Question 31

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

Options:

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.

Question 32

The production plan defines which of the following targets?

Options:

A.

Sales forecast

B.

Quantities of each product to be produced

C.

Level of output to be produced

D.

Business plans for the company

Question 33

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

Question 34

The production plan relates to a firm's financial planning because it is used to:

Options:

A.

calculate standard product costs.

B.

determine variable costs.

C.

project payroll costs.

D.

identify future cash needs.

Question 35

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.

Question 36

The question below is based on the following information:

Work Center 1 has an available capacity of 1,200 hours per month. Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Months 1 through 3?

Options:

A.

50

B.

150

C.

1.250

D.

3.750

Question 37

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

Question 38

In pyramid forecasting, the "roll up" process begins with:

Options:

A.

combining individual product item forecasts into forecasts for product families.

B.

combining forecasts for product families into a total business forecast.

C.

allocating total business forecast changes to product families.

D.

allocating product family forecast changes to individual products.

Question 39

Which of the following activities is an example of collaboration between suppliers and operations which would give more lead time visibility?

Options:

A.

Conducting a facility tour for a supplier

B.

Sharing of demand data with a supplier

C.

Sending the supplier an annual forecast for materials

D.

Conducting a qualification meeting with the supplier of a new material

Question 40

Which of the following strategies is most appropriate for a business unit with a low relative market share in a high-growth market?

Options:

A.

Using excess cash generated to fund other business units

B.

Investing in the acquisition of competitors

C.

Investing in projects to maintain market share

D.

Designing product improvements to protect market share

Question 41

A company selling seasonal products is preparing their sales and operations plan for the coming year. Their current labor staffing is at the maximum for their production facility and cannot meet the forecasted demand. The business plan shows they do not have the financial capability to add to the production facility. Which of the following actions would be most appropriate?

Options:

A.

Uselevel production planning and investigate subcontracting to meet the extra demand.

B.

Usechaseproduction planningand only take the orders that can be produced In the highdemand season.

C.

Usehybridproduction planningto save labor costs and inventory costs in the low demand season.

D.

Usehybridproduction planningand reduce the size of the customer base during the highdemand season.

Question 42

Given the following data, calculate the appropriate takt time:

Options:

A.

0.25 minutes

B.

1 minute

C.

2 minutes

D.

4 minutes

Question 43

Which of the following circumstances would cause a move from acceptance sampling to 100% inspection?

Options:

A.

History shows that the quality level has been stable from lot to lot.

B.

The company uses one of its qualified suppliers.

C.

Downstream operators encounter recurring defects.

D.

The percent of defects is expected to be greater than 5%.

Question 44

If the total part failure rate of a machine is 0.00055 failures per hour, what would be the mean time between failures (MTBF) in hours?

Options:

A.

1,818.2

B.

59.99945

C.

1.98

D.

0.99945

Question 45

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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Total 150 questions