APICS CPIM-8.0 Real 2024 Braindumps Mock Exam Dumps
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NEW QUESTION # 65
Marketing has requested a significant change in the mix for a product family. The requested change falls between the demand and the planning time fences. The most appropriate action by the master scheduler is to:
- A. reject the request.
- B. check the availability of required material.
- C. accept the request.
- D. forward the request to senior management.
Answer: B
Explanation:
Up-to-date information about production order status is required to do the task of calculating the cost of work in process (WIP). WIP is the inventory of partially finished goods that are still undergoing production. The cost of WIP is the sum of the material, labor, and overhead costs that have been incurred for the unfinished products. To calculate the cost of WIP, the production order status is needed to determine the quantity and stage of completion of each product in the production process. The production order status can also indicate the actual costs and variances from the planned costs for each production order. By having up-to-date information about production order status, the cost of WIP can be calculated more accurately and timely, which can help to monitor and control the production performance and profitability. References := CPIM Part
2 Exam Content Manual, Version 8.0, ASCM, 2021, p. 28. CPIM Part 2 Learning System, Version 8.0, Module 3, Section B, Topic 1. Production order lifecycle overview. How to Make a Production Order for Manufacturing.
NEW QUESTION # 66
Which of the following statements about demonstrated capacity Is true?
- A. It considers utilization and efficiency factors.
- B. It reflects the future load.
- C. It is determined from actual results.
- D. It should be higher than rated capacity.
Answer: C
Explanation:
Demonstrated capacity is the actual output achieved by a resource or a system over a period of time, such as a day, a week, or a month. It is determined from actual results, such as production records, time studies, or historical data. Demonstrated capacity reflects the past performance, not the future load, of a resource or a system. It may be lower or higher than the rated capacity, which is the theoretical or design capacity of a resource or a system. Demonstrated capacity considers utilization and efficiency factors, such as machine availability, operator skills, product mix, quality issues, or maintenance schedules, that affect the actual output. References:
Managing Supply Chain Operations, Chapter 5: Capacity Planning and Management, Section 5.2:
Capacity Planning Decisions, page 132-133.
Manufacturing Planning and Control for Supply Chain Management: The CPIM Reference, Second Edition, Chapter 6: Capacity Management, Section 6.2: Capacity Planning, page 156-157.
CPIM 8.0 Exam Content Manual Preview, Module 5: Plan and Manage Supply, Section 5.1: Plan and Manage Capacity, page 9.
NEW QUESTION # 67
Based on the above table, calculate the mean absolute deviation (MAD).
- A. 6.25
- B. 0
- C. 1
- D. 18.75
Answer: A
Explanation:
The mean absolute deviation (MAD) is a measure of variability that indicates the average distance between observations and their mean. MAD uses the original units of the data, which simplifies interpretation. Larger values signify that the data points spread out further from the average. Conversely, lower values correspond to data points bunching closer to it. The mean absolute deviation is also known as the mean deviation and average absolute deviation1.
The formula for the mean absolute deviation is the following:
MAD = (|X - X|) / N
Where:
*X = the value of a data point
*X = the mean of the data points
*|X - X| = the absolute deviation of a data point from the mean
*N = the number of data points
* = the summation symbol
Based on the table, we can calculate the MAD as follows:
*X = (80 + 50 + 50 + 75) / 4 = 63.75
*|X - X| = |80 - 63.75|, |50 - 63.75|, |50 - 63.75|, |75 - 63.75| = 16.25, 13.75, 13.75, 11.25
*MAD = (16.25 + 13.75 + 13.75 + 11.25) / 4 = 6.25
Therefore, the correct answer is B.
References := 1 CPIM Part 2 Exam Content Manual, Domain 3: Plan and Manage Demand, Task 3.1:
Develop, validate, and review demand plans, p. 23.
NEW QUESTION # 68
Based on the values reported in the table below, what is the inventory turnover?
- A. 0.50
- B. 1.73
- C. 0.58
- D. 2.60
Answer: B
Explanation:
Inventory turnover is a ratio that measures how many times a company sells and replaces its inventory in a given period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory value. A higher inventory turnover indicates a more efficient use of inventory, while a lower turnover implies excess inventory or poor sales1.
Based on the values reported in the table, we can calculate the inventory turnover as follows:
Inventory Turnover = COGS / Average Inventory Value = $260,000 / $150,000 = 1.73 Therefore, the correct answer is C.
References := 1 Inventory Turnover - How to Calculate Inventory Turns2
NEW QUESTION # 69
Which of the following factors is used to determine safety stock?
- A. Time between customer orders
- B. Available capacity
- C. Number of customers
- D. Forecast error distribution
Answer: D
Explanation:
Safety stock is the extra inventory that a company keeps to prevent stockouts or shortages due to uncertainties in demand, supply, or lead time. Safety stock acts as a buffer to protect the company from losing sales or disrupting operations. One of the factors that is used to determine safety stock is the forecast error distribution, which is the measure of how much the actual demand deviates from the forecasted demand. Forecast error distribution can be calculated by using statistical methods, such as standard deviation or mean absolute deviation, to find the average and the variability of the forecast errors. The higher the forecast error distribution, the more safety stock is needed to cover the potential demand fluctuations. Forecast error distribution is one of the components of the safety stock formula, which is:
Safety stock = Z x LT x D
Where:
Z refers to the service level factor, which is the desired probability of not having a stockout.
LT refers to the standard deviation of lead time, which is the average variability of the time it takes to replenish inventory.
D is the average demand per unit of time.
References := CPIM Part 2 Exam Content Manual, Version 8.0, ASCM, 2021, p. 24. CPIM Part 2 Learning System, Version 8.0, Module 2, Section C, Topic 3. How To Calculate Safety Stock (With Examples and FAQs). What is Safety Stock? (Definition, Formulas, Best Practices).
NEW QUESTION # 70
Which of the following product design approaches are likely to reduce time to market for a global supply chain?
- A. Design for manufacture
- B. Design for logistics
- C. Quality function deployment (QFD)
- D. Concurrent engineering
Answer: D
NEW QUESTION # 71
Management should support investments in new process technologies that:
- A. provide long-term competitive advantage with acceptable financial risk.
- B. provide significant cost-reduction opportunities for the company's current products.
- C. have been recommended by technical experts and equipment suppliers.
- D. require minimal changes in existing systems, procedures, and skills.
Answer: A
Explanation:
Management should support investments in new process technologies that align with the strategic objectives of the organization and provide a sustainable competitive advantage in the market. New process technologies may involve changes in existing systems, procedures, and skills, but these changes should be justified by the potential benefits and risks of the investment. Therefore, option D is correct. Option A is incorrect because requiring minimal changes in existing systems, procedures, and skills is not a sufficient criterion for investing in new process technologies. Option B is incorrect because relying on the recommendations of technical experts and equipment suppliers may not reflect the best interests of the organization or its customers. Option C is incorrect because providing significant cost-reduction opportunities for the company's current products may not be enough to justify the investment in new process technologies, especially if the products have a short life cycle or low demand. References: CPIM Part 2 Exam Content Manual, Version 8.0, Section H:
Quality, Continuous Improvement, and Technology, Subsection H.3: Technology, p. 85.
NEW QUESTION # 72
The primary benefit that results from the cross-training of employees is:
- A. improved capacity.
- B. improved flexibility.
- C. shortened lead time.
- D. effective problem-solving.
Answer: B
Explanation:
Cross-training employees is the process of training employees for skills and job roles they weren't initially hired for. This allows them to switch between different tasks and roles when needed, which increases the flexibility and adaptability of the workforce. Cross-training also enhances the problem-solving, communication, and collaboration skills of the employees, but the primary benefit is improved flexibility12 References: 1: 9 Major Benefits of Cross-Training Employees Effectively 2: Employee cross-training: 8 benefits you can't afford to miss
NEW QUESTION # 73
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?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: B
Explanation:
Given the bill of material (BOM) information, we can calculate the weekly gross requirement of component F by considering the independent requirements of Component A and B. For Component A, there is no direct requirement for Component F. For Component B, which has an independent requirement of 20 pcs per week, each requires 4 pcs of Component F according to its BOM. So, thetotal weekly gross requirement for Component F due to Component B is 204 = 80 pcs. Additionally, each piece of Component A requires 2 pieces of Component C according to its BOM and has an independent requirement of 10 pcs per week; hence requiring a total of 20 pieces of component C per week. Each piece of component C in turn requires 4 pieces of component F according to its BOM; hence requiring a total weekly gross requirement for component F due to component A is: 204 =80 pcs. Adding both gives us a total weekly gross requirement for component F as:80+80=160pcs. References:
*CPIM Part 1 Learning System, Module 4: Inventory Management, Section 4.2: Inventory Management Policies and Objectives
*CPIM Part 2 Learning System, Module 1: Supply Chain Strategy, Section 1.3: Capacity Management
NEW QUESTION # 74
The master schedule is an Important tool in the sales and operations planning (S&OP) process because it:
- A. represents the forecast with less detail.
- B. represents the forecast before changes are made in S&OP.
- C. balances supply and demand at the product mix level.
- D. balances supply and demand at the sales volume level.
Answer: C
Explanation:
The master schedule is an important tool in the sales and operations planning (S&OP) process because it balances supply and demand at the product mix level. The master schedule is a detailed plan that specifies the quantity and timing of each end item or product family to be produced. It is derived from the aggregate production plan, which is the output of the S&OP process. The master schedule helps to translate the aggregate plan into specific product requirements and to allocate the available capacity to meet the demand. The master schedule also provides input to the material requirements planning (MRP) and capacity requirements planning (CRP) systems, which further refine the production plan at the component and resource levels. The other statements are not true about the master schedule. The master schedule does not represent the forecast before changes are made in S&OP, as the forecast is an input to the S&OP process, not an output. The master schedule does not represent the forecast with less detail, as the master schedule is more detailed than the forecast, which is usually expressed in aggregate terms. The master schedule does not balance supply and demand at the sales volume level, as the sales volume level is the level of the aggregate production plan, not the master schedule. References: Master Schedule | APICS Dictionary Term of the Day, APICS CPIM 8 Planning and Inventory Management | ASCM
NEW QUESTION # 75
Which of the following circumstances would cause a move from acceptance sampling to 100% inspection?
- A. Downstream operators encounter recurring defects.
- B. History shows that the quality level has been stable from lot to lot.
- C. The percent of defects is expected to be greater than 5%.
- D. The company uses one of its qualified suppliers.
Answer: A
Explanation:
Acceptance sampling is a statistical quality control technique that involves inspecting a sample of products or materials from a lot and deciding whether to accept or reject the lot based on the sample results1. Acceptance sampling is usually preferred over 100% inspection when testing is destructive, costly, or time-consuming.
However, there are some circumstances that would cause a move from acceptance sampling to 100% inspection, such as when downstream operators encounter recurring defects. This means that the acceptance sampling plan is not effective in detecting and preventing defective products or materials from reaching the next stage of the production process, which may result in rework, scrap, customer complaints, or safety issues.
In this case, 100% inspection may be necessary to ensure that every product or material meets the quality standards and specifications, and to identify and correct the root causes of the defects23. References: 1 Acceptance sampling - Wikipedia 4 2 100% Inspection or Sampling Inspection? Which is Best5 3 CPIM Exam References - Association for Supply Chain Management 1
NEW QUESTION # 76
Which of the following measurements indicates there may be bias In the forecast model?
- A. Tracking signal
- B. Standard deviation
- C. Mean absolute deviation (MAD)
- D. Variance
Answer: A
Explanation:
The tracking signal is a measurement that indicates there may be bias in the forecast model. The tracking signal is the ratio of the cumulative forecast error to the mean absolute deviation (MAD). It measures how well the forecast is tracking the actual demand over time. A tracking signal of zero means that the forecast is perfectly accurate. A tracking signal within the range of -4 to +4 is considered acceptable. A tracking signal outside this range indicates that the forecast is consistently overestimating or underestimating the demand, which implies that there is bias in the forecast model. Bias is the tendency of a forecast to be consistently higher or lower than the actual demand. Bias can be caused by factors such as inaccurate data, inappropriate forecasting methods, or changes in demand patterns. References:
Managing Supply Chain Operations, Chapter 5: Demand Management and Forecasting, Section 5.2:
Forecasting Methods, Subsection 5.2.3: Forecast Accuracy and Control
CPIM Exam Content Manual, Module 3: Demand, Section 3.2: Forecasting, Subsection 3.2.2:
Forecasting Methods, Subsubsection 3.2.2.3: Forecast Accuracy and Control
NEW QUESTION # 77
A company confirms a customer order based on available capacity and inventory, even though the current production plan does not cover the entire order quantity. This situation is an example of what type of order fulfillment policy?
- A. Assemble-to-order (ATO)
- B. Available-to-promise (ATP)
- C. Configure-to-order (CTO)
- D. Capable-to-promise (CTP)
Answer: D
Explanation:
Capable-to-promise (CTP) is a type of order fulfillment policy that confirms a customer order based on the available capacity and inventory, as well as the current production plan and schedule. CTPcalculates the earliest possible delivery date for a customer order, considering the existing demand and supply situation. CTP allows a company to accept an order that exceeds the current available inventory, as long as it can produce the remaining quantity within the customer's requested delivery time. CTP helps to improve customer service, reduce inventory costs, and increase production efficiency12. References: 1 Capable to Promise (CTP) - Definition, Calculation, and Examples 3 2 CPIM Exam References - Association for Supply Chain Management
NEW QUESTION # 78
In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:
- A. earlier Identification of shifts Incustomer preferences.
- B. reduced forecast variability.
- C. fewer customer order changes.
- D. fewer customer defections.
Answer: A
Explanation:
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
NEW QUESTION # 79
The planned channels of Inventory disbursement from one or more sources to field warehouses are known as:
- A. a supply chain community.
- B. interplant demand.
- C. logistics data interchange (LDI).
- D. a bill of distribution.
Answer: D
Explanation:
A bill of distribution is the planned channels of inventory disbursement from one or more sources to field warehouses and ultimately to the customer. There may be one or more levels in the disbursement system. It is used to allocate inventory among different distribution centers based on demand, capacity, and costs. A bill of distribution is similar to a bill of materials, but for distribution planning instead of production planning. The other options are not correct, as they refer to different concepts in distribution management:
*A supply chain community is a network of organizations that collaborate to achieve common goals and objectives in the supply chain.
*Interplant demand is the demand for a product or component from one plant to another within the same company.
*Logistics data interchange (LDI) is the electronic exchange of information between logistics partners, such as suppliers, carriers, and customers. References:
*[CPIM Part 2 - Section A - Topic 4 - Distribution Planning]
*Distribution Channel Design
*APICS Flashcards
NEW QUESTION # 80
The cost accountant has discovered a consistent overage in actual run time for one operation. This information should be sent first to the:
- A. product manager to increase the selling price of the product.
- B. the engineering manager to evaluate the run time for the routing.
- C. production supervisor to review and explain the overage.
- D. quality manager to add a new quality measurement to the operation.
Answer: C
Explanation:
The production supervisor is the most appropriate person to send the information about the overage in actual run time for one operation. The production supervisor is responsible for overseeing the execution of the production plan and ensuring that the operations are performed efficiently and effectively. The production supervisor can review the actual run time data and compare it with the planned run time, identify the possible causes of the overage, and take corrective actions if needed. The production supervisor can also explain the overage to the cost accountant and other stakeholders, such as the product manager, the quality manager, and the engineering manager, and provide feedback for improving the planning and routing of the operation. References:
APICS CPIM Part 2 Exam Content Manual, p. 30
[APICS CPIM Learning System Version 8.0], Module 4, Section D, p. 4-35
NEW QUESTION # 81
When the discrete available-to-promise (ATP) method is used, the master production receipt quantity is committed to:
- A. any request for shipment prior to the planning time fence.
- B. requests only for shipment before the next master production schedule (MPS) receipt.
- C. requests only for shipment in the period of the receipt.
- D. any request for shipment prior to the demand time fence (DTF).
Answer: B
Explanation:
The discrete available-to-promise (ATP) method is a calculation based on the available-to-promise figure in the master schedule. For the first period, the ATP is the sum of the beginning inventory plus the MPS quantity minus backlog for all periods until the item is master scheduled again. For other periods, the quantity that is available for an item is based on the quantity available within an individual purchase. Therefore, the master production receipt quantity is committed to requests only for shipment before the next MPS receipt12.
References:
*1: APICS CPIM Part 2 Exam Content Manual, Version 8.0, p. 29
*2: NetSuite Applications Suite - Available to Promise Methods3
NEW QUESTION # 82
Which of the following attributes describes a company with a global strategy?
- 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.
Answer: A
Explanation:
A company with a global strategy seeks to achieve a competitive advantage by standardizing its products, processes, and marketing across different countries. It leverages economies of scale and scope, as well as global brand recognition, to gain market share and profitability. It does not adapt to local preferences or conditions, but rather imposes a uniform approach to all markets. References: EXAM CONTENT MANUAL PREVIEW, page 6, section 1.1.2. Strategic Supply Chain Management: The Five Core Disciplines for Top Performance, Second Edition, page 19, section 1.2.
NEW QUESTION # 83
Which of the following factors typically would distort a sales forecast that is based solely on shipment history?
- A. Currency exchange rates
- B. Labor rate changes
- C. Customer demands
- D. Material shortages
Answer: C
Explanation:
A sales forecast that is based solely on shipment history assumes that the past demand patterns will continue in the future. However, this assumption may not be valid if there are factors that affect the customer demand that are not captured by the shipment history. For example, customer demands may change due to seasonality, promotions, new product introductions, competitor actions, economic conditions, or other external influences.
These factors may distort the sales forecast that is based solely on shipment history and cause it to be inaccurate or unreliable. The other options are not factors that typically distort a sales forecast that is based solely on shipment history, as they do not directly affect the customer demand. Material shortages, labor rate changes, and currency exchange rates may affect the supply side of the business, but they do not necessarily reflect the customer preferences or needs. References:
CPIM Part 2 Exam Content Manual, p. 29
Sales Forecast: Complete Guide to Sales Forecasting in [2023]
The Complete Guide to Building a Sales Forecast | Salesforce
NEW QUESTION # 84
A disadvantage of a capacity-lagging strategy may be:
- A. lack of capacity to fully meet demand.
- B. planned capital investments occur earlier than needed.
- C. risk of excess capacity if demand does not reach forecast.
- D. a high cost of inventories.
Answer: A
Explanation:
A capacity-lagging strategy is a conservative approach to capacity planning that involves adding capacity only when the firm is operating at full capacity because of an increase in demand1. This strategy can help minimize costs and reduce the risk of excess capacity, but it can also lead to a disadvantage of not being able to fully meet customer demand if it rises quickly2. This can result in lost customers, revenue, and market share, as well as lower customer satisfaction and loyalty3. References:
*Lag Capacity Strategy, Lag Demand Strategy - UniversalTeacher.com
*Capacity Planning Strategies: Types, Examples, Pros And Cons - Toggl
*3 types of capacity planning strategies (with examples) - Xola
NEW QUESTION # 85
A company's primary performance objective Is flexibility. Which of the following measurements is most important?
- A. Cycle time
- B. Machine changeover time
- C. Schedule adherence
- D. Labor productivity
Answer: B
Explanation:
Flexibility is the ability of a process or system to adapt to changes in customer demand, product mix, or production volume. A flexible process can respond quickly and efficiently to these changes, minimizing disruptions and costs. One of the key measurements of flexibility is machine changeover time, which is the time required to switch a machine or equipment from producing one type of product to another. A shorter machine changeover time means a higher level of flexibility, as the process can accommodate different products or orders without wasting time or resources. This aligns with CPIM's focus on plan, manage, and execute detailed schedules and manage quality, continuous improvement, and technology. References: The concepts are covered in detail in Module 5: Detailed Scheduling and Planning (1 and Module 6: Quality, Continuous Improvement, and Technology (2. You can also find more information about flexibility and machine changeover time from these sources: 3, 4, and 5.
NEW QUESTION # 86
One of the most useful tools for analyzing the sustainable footprint is:
- A. SWOT analysis.
- B. lean six sigma.
- C. ISO 9000.
- D. process mapping.
Answer: D
Explanation:
Process mapping is a tool that helps identify the inputs, outputs, and activities of a process, as well as the environmental impacts and opportunities for improvement. Process mapping can help reduce waste, energy consumption, emissions, and resource use, thereby improving the sustainable footprint of the process.
Therefore, option A is correct. Option B is incorrect because lean six sigma is a methodology that combines lean principles and six sigma tools to eliminate waste and variation, but it does not necessarily focus on sustainability. Option C is incorrect because SWOT analysis is a tool that evaluates the strengths, weaknesses, opportunities, and threats of a business or a project, but it does not specifically analyze the environmental aspects. Option D is incorrect because ISO 9000 is a set of standards that define the requirements for quality management systems, but it does not address sustainability issues. References: CPIM Part 2 Exam Content Manual, Version 8.0, Section H: Quality, Continuous Improvement, and Technology, Subsection H.4:
Sustainability, p. 86.
NEW QUESTION # 87
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?
- A. Number of component items stocked will increase.
- B. Sales volume per product family will increase.
- C. Number of finished items stocked will decrease.
- D. Product variety will decrease.
Answer: C
Explanation:
Postponement is a strategy whereby the final configuration of a product is delayed as much as possible, usually until a customer order is received. Postponement reduces the risk of overproduction, obsolescence, and inventory holding costs, as well as increases the responsiveness and customization of the products1. A firm that currently produces all items to stock is implementing the concept of postponement in all new product designs. This means that the firm will produce generic or family products that can be differentiated into specific end-products later. This will result in a decrease in the number of finished items stocked, as the firm will only stock the generic or family products and not the final products. The firm will also be able to offer more product variety and flexibility to the customers, as it can customize the products according to the customer orders. Therefore, the most likely outcome of implementing postponement in all new product designs is a decrease in the number of finished items stocked. References: 1 Postponement - Wikipedia 2
NEW QUESTION # 88
Long lead-time items with stable demand would best be supported by a supply chain:
- A. designed to be responsive.
- B. linked through an enterprise resources planning (ERP) system.
- C. positioning inventory close to the consumer.
- D. using a pull system.
Answer: C
Explanation:
Long lead-time items with stable demand are best supported by a supply chain that positions inventory close to the consumer. This reduces the risk of stockouts and improves customer service levels. It also allows the supply chain to buffer against demand variability and supply disruptions. Positioning inventory close to the consumer is a form of postponement strategy, where the final assembly or customization of products is delayed until the customer order is received12. References: EXAM CONTENT MANUAL PREVIEW, page
9, section 3.1.2. [Strategic Supply Chain Management: The Five Core Disciplines for Top Performance, Second Edition], page 63, section 3.2.
NEW QUESTION # 89
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