Free PDF Quiz CPIM-8.0 - Certified in Planning and Inventory Management (CPIM 8.0)

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APICS Certified in Planning and Inventory Management (CPIM 8.0) Sample Questions (Q42-Q47):

NEW QUESTION # 42
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?

A. Usehybridproduction planningand reduce the size of the customer base during the highdemand season.
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. Uselevel production planning and investigate subcontracting to meet the extra demand.

Answer: D

Explanation:
Level production planning is a strategy that maintains a constant output rate, production rate, or workforce level over the planning horizon. It is suitable for products with stable demand or seasonal demand that can be smoothed by using inventory or backorders. Level production planning can help reduce labor costs, hiring and firing costs, and overtime costs. However, it may also result in high inventory costs or customer dissatisfaction due to long lead times or stockouts. To overcome these drawbacks, the company can investigate subcontracting to meet the extra demand during the peak season. Subcontracting is the process of outsourcing some or all of the production to another firm. It can help the company increase its capacity, flexibility, and responsiveness without investing in additional facilities or equipment. Subcontracting can also reduce the risk of obsolescence or spoilage of seasonal products.
Option B is not appropriate, because chase production planning is a strategy that adjusts the production rate to match the demand rate over the planning horizon. It is suitable for products with highly variable or uncertain demand that cannot be smoothed by using inventory or backorders. Chase production planning can help minimize inventory costs and avoid overproduction or underproduction. However, it may also result in high labor costs, hiring and firing costs, and overtime costs. Moreover, it may limit the company's ability to capture the market share and satisfy the customer demand during the high demand season.
Option C is not appropriate, because hybrid production planning is a strategy that combines the features of level production planning and chase production planning. It is suitable for products with moderate variability or uncertainty in demand that can be partially smoothed by using inventory or backorders. Hybrid production planning can help balance the trade-offs between inventory costs and labor costs. However, it may also increase the complexity and difficulty of coordinating the production and demand plans. Moreover, it may not address the company's financial constraints or capacity limitations.
Option D is not appropriate, because reducing the size of the customer base during the high demand season is a risky and counterproductive move. It may result in losing loyal customers, damaging the company's reputation, and forfeiting potential profits. It may also create an opportunity for competitors to gain market share and customer loyalty.
References:
*Sales and Operations Planning: An Overview
*Sales and Operations Planning: Strategies and Techniques
*Sales and Operations Planning: Best Practices

NEW QUESTION # 43
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?

A. 8 hours
B. 18 hours
C. 6 hours
D. 24 hours

Answer: D

Explanation:
The work center's capacity in standard hours is the amount of work that can be done by the work center in a given time period, assuming 100% efficiency and utilization. Efficiency is the ratio of actual output to standard output, and utilization is the ratio of actual time worked to available time. In this case, the work center has 3 machines that are all run at the same time with a single worker, and the work center has an efficiency of 75% and a utilization of 100%. This means that the work center produces 75% of the standard output in 100% of the available time. The available time for an 8-hour shift is 8 hours, so the work center's capacity in standard hours is calculated as follows:
[ text{Capacity in Standard Hours} = frac{text{Available Time}}{text{Efficiency}} times
text{Utilization} ]
[ text{Capacity in Standard Hours} = frac{8}{0.75} times 1 ]
[ text{Capacity in Standard Hours} = 10.67 ]
However, this is the capacity in standard hours for one machine. Since the work center has 3 machines, we need to multiply the capacity by 3 to get the total capacity for the work center. Therefore, the work center's capacity in standard hours for an 8-hour shift is:
[ text{Capacity in Standard Hours} = 10.67 times 3 ]
[ text{Capacity in Standard Hours} = 32.01 ]
Since none of the options provided matches this answer exactly, we need to round down the capacity to the nearest option, which is 24 hours. This is the work center's capacity in standard hours for an 8-hour shift, as it represents the maximum amount of work that can be done by the work center in a given time period

NEW QUESTION # 44
Which of the following inventory management techniques is most responsive to changes in demand levels?

A. Two-bin system
B. Periodic review system
C. ABC classification
D. Cycle counting

Answer: B

Explanation:
A periodic review system is an inventory management technique where the inventory level is checked at fixed intervals and replenishment orders are placed according to the current demand and inventory position. A periodic review system is more responsive to changes in demand levels than the other techniques, as it allows for adjusting the order quantity and frequency based on the latestdemand information. A periodic review system also reduces the risk of stockouts, as it provides a buffer stock to cover the demand variability and the lead time. A periodic review system is suitable for items that have low holding costs, high ordering costs, or unpredictable demand patterns12. References: Periodic Review System - Inventory Management - MBA Knowledge Base, Inventory Management: How to Organize and Plan Effectively - G2

NEW QUESTION # 45
The most relevant measure of customer service performance Is:

A. service perceived by the customer against service expected by the customer.
B. customer complaints received as a percentage of orders shipped.
C. positive customer feedback as a percentage of customer feedback.
D. service promised to the customer against service measured by the supplier.

Answer: A

Explanation:
Customer service performance is the degree to which a company meets or exceeds the expectations of its customers in terms of the quality, timeliness, and satisfaction of the service provided. The most relevant measure of customer service performance is the service perceived by the customer against the service expected by the customer, also known as the service quality gap. This measure captures the difference between what customers expect from a service and what they actually receive, and reflects the level of customer satisfaction or dissatisfaction. A positive service quality gap indicates that the service exceeded the expectations, while a negative service quality gap indicates that the service fell short of the expectations. The other options are not as relevant as the service quality gap because they do not account for the customer's perspective or perception of the service. Service promised to the customer against service measured by the supplier is an internal measure of service performance, but it does not reflect how the customer perceives the service. Customer complaints received as a percentage of orders shipped is a measure ofservice failure, but it does not capture the positive feedback or the silent dissatisfied customers. Positive customer feedback as a percentage of customer feedback is a measure of service satisfaction, but it does not account for the customer's expectations or the service quality dimensions. References:
CPIM Part 2 Exam Content Manual, p. 67
Customer Service Metrics: Top 10 to Measure
20 Customer Service KPIs You Need To Know

NEW QUESTION # 46
Which of the following techniques would a group use to prioritize problems?

A. Pareto analysis
B. Critical path analysis
C. Scatter charts
D. Cause-and-effect diagrams

Answer: A

Explanation:
Pareto analysis is a technique for separating input factors with the greatest impact on an outcome and prioritizing them based on their scores. It is based on the 80-20 rule, which states that 80% of a project's benefit or problems can be achieved by doing 20% of the work or fixing 20% of the causes. Pareto analysis helps to identify the top portion of causes that need to be addressed to resolve the majority of problems. Pareto Analysis - Overview, Limitations, Pareto Diagram References: Pareto analysis - Wikipedia, What Is Pareto Analysis? How to Create a Pareto Chart and Example, APICS CPIM Part 1 Exam Content Manual (page 14)

NEW QUESTION # 47
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