CPIM-Part-2 Exam Dumps : Certified in Planning and Inventory Management(Part 2)

Rough-cut capacity planning (RCCP) is a long-term capacity planning technique that validates the master production schedule (MPS) by comparing the required capacity and the available capacity of critical resources. Critical resources are those that have the most impact on the production process, such as machines, labor, or materials. RCCP helps to identify any potential imbalances or bottlenecks in the production system and to adjust the MPS or the resource availability accordingly.

To perform RCCP, one of the forms of data that is required is critical work center availability. A work center is a location where one or more resources perform a specific operation or a group of operations. A critical work center is a work center that has a high utilization rate, a low flexibility, or a high influence on the production output. Critical work center availability is the amount of time or capacity that a critical work center can offer for production activities. Critical work center availability can be affected by factors such as shifts, holidays, maintenance, breakdowns, or setups. RCCP uses critical work center availability to determine whether there is enough capacity to meet the planned production.

Current work in process (WIP) is not a form of data that is required for RCCP. WIP is the inventory of partially finished goods that are waiting for further processing or assembly. WIP is not relevant for RCCP, as RCCP focuses on the future demand and capacity, not the current inventory status.

Resource requirements plan is not a form of data that is required for RCCP. Resource requirements plan is the output of RCCP, not the input. Resource requirements plan is a report that shows the projected load and capacity of each critical resource over a planning horizon. Resource requirements plan can help to identify any gaps or surpluses in capacity and to take corrective actions.

Work center queues are not a form of data that is required for RCCP. Work center queues are the waiting lines of jobs or orders at a work center. Work center queues are an indicator of short-term capacity issues, such as delays, backlogs, or congestion. Work center queues are not relevant for RCCP, as RCCP focuses on the long-term capacity planning, not the short-term scheduling.

References := Guide to Rough-Cut Capacity Planning | Smartsheet, Guide to Rough Cut Capacity Planning - Definition and Example, ROUGH-CUT CAPACITY PLANNING - Operations Management: An Integrated …, Rough-cut Capacity Planning - Infor Documentation Central

 Vendor-managed inventory (VMI) is a type of supply chain collaboration where the supplier takes responsibility for managing the inventory levels and replenishment orders of the buyer. VMI provides a benefit to the buying company in several ways, such as improving service levels, reducing stockouts, increasing visibility, and enhancing trust. One of the specific benefits of VMI is that it reduces administrative expenses for the buying company. Administrative expenses are the costs associated with the general operations and management of the business, such as salaries, rent, utilities, office supplies, and communication. VMI reduces administrative expenses by eliminating or simplifying the tasks related to inventory management, such as forecasting, ordering, invoicing, and payment. VMI also reduces administrative expenses by streamlining the communication and coordination between the buyer and the supplier, and by reducing the errors and disputes that may arise from inventory discrepancies.

References: CPIM Exam Content Manual Version 7.0, Domain 7: Plan and Manage Distribution, Section 7.1: Develop Distribution Plans, Subsection 7.1.3: Describe how to develop supplier-customer relationships (page 66).

Obsolescence is the loss of value or usefulness of an item due to changes in technology, fashion, customer preferences, or other factors. Obsolescence is considered a carrying cost, because it is an expense associated with holding inventory over a period of time1. Carrying costs are the various costs a business pays for holding inventory in stock, such as warehousing, insurance, taxes, depreciation, and opportunity costs2. Obsolescence can increase the carrying costs of inventory,because it can reduce the demand and sales potential of the item, and may require the item to be written off or sold at a lower price3.

The other options are not considered carrying costs, because they are not related to holding inventory in stock. Setup is the cost of preparing a machine or a process for production. Transportation is the cost of moving goods from one place to another. Scrap rate is the percentage of defective or unusable units produced in a process. These costs are more related to production or distribution activities than inventory holding activities.