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CPIM-Part-2 Sample Questions Answers

Questions 4

A manufacturer wishes to decrease the time-to-market for a new product family. Which of thefollowing strategies should beused?

Options:

A.

Decrease the number of suppliers for components of the new product.

B.

Decrease the purchasing lot size for the new product's components.

C.

Increase collaboration between the buyer and the supplier of new components.

D.

Increase the safety stocks for the new product's components.

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Questions 5

The capacity requirements plan is used primarily to:

Options:

A.

balance capacity and load at work centers.

B.

calculate the level of available capacity.

C.

determine the overall product load profile.

D.

determine the priority of orders.

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Questions 6

External sustainability reporting and verification is an opportunity for a company to communicate its:

Options:

A.

confidence.

B.

profitability.

C.

growth.

D.

performance.

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Questions 7

An advantage of adopting a capacity-leading strategy is that:

Options:

A.

there is sufficient capacity to meet demand.

B.

there is sufficient demand to consume capacity.

C.

all demand is satisfied, and profit is maximized.

D.

overcapacity problems are minimized.

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Questions 8

One way to mitigate liability risk in the supply chain is to:

Options:

A.

negotiate lower component cost.

B.

require traceability for components.

C.

push inventory to supplier locations.

D.

use less-than-truckload (LTL) shipments more frequently.

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Questions 9

Which of the following risk management strategies assumes that losses in one part of the supplychain will be offset by gainsin another?

Options:

A.

Flexible

B.

Fluctuation

C.

Hedge 5

D.

Speculative

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Questions 10

Once an organization's monthly sales and operations planning (S&0OP) process hasbeen completed, the functionalresponsibility of operations is to:

Options:

A.

change the master schedule to meet the sales orders.

B.

signal critical capacity constraints to top management.

C.

meet the revised production plan.

D.

produce to the current master production schedule (MPS).

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Questions 11

In which of the following environments is capable-to-promise (CTP) more appropriate than available-to-promise (ATP)?

Options:

A.

Consumer electronics sold through local retailers

B.

Industrial supplies shipped from regional distribution centers (DCs)

C.

Packaged foods sold in grocery stores

D.

Specialty chemicals packaged and shipped to order

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Questions 12

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

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Questions 13

Fishbone diagrams would help a service organization determine:

Options:

A.

the proper level of service for a customer segment.

B.

the source of aquality-of-serviceissue.

C.

differences in the performance of employees.

D.

the decomposition of customer return rates with seasonality.

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Questions 14

In which of the following situations would the use of a failure mode effect analysis (FMEA) be most appropriate?

Options:

A.

After a one-time quality incident investigation

B.

During the define phase of asix-sigmaproject

C.

During evaluation of a new market opportunity

D.

Prior to a new product introduction (NPI)

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Questions 15

An analysis was done on a group of parts that showed a missed delivery resulting in lost sales on other product lines manytimes greater than the value of the initial lost sale. As a result, the company launched an initiative to increase the fill rate onthese parts to 100%. Currently, they have raised the fill rate to 99%. As they continue the initiative, what effects are mostlikely expected?

Options:

A.

Operating costs and service level will both increase at the same rate.

B.

Operating costs will increase slower than service level,

C.

Operating costs will increase faster than service level.

D.

Neither operating costs nor service level will increase.

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Questions 16

Which of the following stock location systems would you use in a repetitive manufacturing, lean environment?

Options:

A.

Fixed location

B.

Floating location

C.

Point-of-use storage

D.

Central storage N

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Questions 17

A factory work center has the following work orders. What is the load on this work center?

Options:

A.

248 hours

B.

252.5 hours

C.

257 hours

D.

332.5 hours

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Questions 18

Staging in a manual system corresponds to which of the following functions in a computer system?

Options:

A.

Order release

B.

Allocation

C.

Dispatching

D.

Bill-of-material explosion

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Questions 19

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 20

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

Options:

A.

A pipeline inventory.

B.

transportation costs.

C.

inventory turns.

D.

sales revenue.

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Questions 21

In a make-to-order (MTO) environment, inputs to sales and operations planning (S&0P) should include the:

Options:

A.

projected backlog of customer orders.

B.

work-in-process (WIP) inventory.

C.

finished goods inventory.

D.

available-to-promise (ATP) data.

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Questions 22

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.

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Questions 23

Which of the following priority rules is most consistent with the objective of meeting due dates?

Options:

A.

First-come-first-served

B.

Shortest processing time (SPT)

C.

Fewest operations remaining

D.

Slack time per operation

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Questions 24

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 in customer preferences.

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Questions 25

A balanced scorecard is a performance measurement approach that involves:

Options:

A.

balancing supply and demand.

B.

assigning profit responsibility to key managers.

C.

obtaining external industry performance measures against the company's key performance indicators (KPIs).

D.

linking financial and non-financial performance measures to organizational goals.

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Questions 26

A vendor-managed inventory (\VMI) program provides a benefit to the buying company in which of the following ways?

Options:

A.

Reduces material cost

B.

Reduces work in process (WIP)

C.

Reduces administrative expenses

D.

Reduces the number of quality notifications

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Questions 27

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

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Questions 28

A life cycle assessment (LCA) would be used to determine:

Options:

A.

the length of a long-term agreement.

B.

how an item should be scheduled.

C.

environmental aspects and impacts.

D.

if risk pooling would reduce inventory investment.

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Questions 29

An effective process to create meaningful change begins with:

Options:

A.

reviewing financial outcomes and metrics over the last 4 quarters year-over-year.

B.

identifying and discussing a past crisis, a potential crisis, or major opportunities.

C.

refreshing corporate strategy to align with current marketplace realities for your industry.

D.

using consultants to provide in-depth analysis of current management opportunities.

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Questions 30

A part is sold as a service part, and it is also used as a component in another part. Which ofthe following statements aboutthe planning for this part is true?

Options:

A.

Its low-level code is zero.

B.

The material requirements for the part will be understated.

C.

The service part demand can be included in the gross requirements.

D.

It shouldn't have any safety stock.

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Questions 31

A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer servicelevels for customers B and C?

Options:

A.

100% service levels for B and C

B.

Customer B has higher service level

C.

Customer C has higher service level

D.

Customer B and C have same service level

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Questions 32

What is the purpose of a buffer in the theory of constraints (TOC)?

Options:

A.

It allows for processing jobs at a lower rate than demand.

B.

It prevents unplanned idleness of the resource.

C.

It identifies the root cause of the constraint.

D.

It opens an opportunity to exploit the system.

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Questions 33

In a lean environment, one uses material requirements planning (MRP) processing primarily to:

Options:

A.

create plans to share with suppliers.

B.

calculate average daily demand.

C.

determine the kanban circuit locations.

D.

determine where to use supermarkets.

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Questions 34

Safety capacity in lean environments is:

Options:

A.

unnecessary waste to be reduced in the next kaizen event.

B.

where taketime is greater than cycle time.

C.

provided by adding an additional shift.

D.

employing additional workers in peak periods.

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Questions 35

If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will:

Options:

A.

remain the same.

B.

increase in direct (linear) proportion.

C.

increase at a decreasing rate.

D.

increase at an increasing rate.

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Questions 36

Which of the following represents landed costs?

Options:

A.

Combining smaller shipments to take advantage of bulk efficiencies

B.

Purchasing and delivering a purchased product to its final destination

C.

Supplier absorbing freight charges

D.

Duties levied on imports and exports

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Questions 37

A product family consists of 46 items, each having 5 features available and 6 options available. At which level of the bill ofmaterial (BOM) would it be most appropriate to forecast?

Options:

A.

Subassembly level items

B.

Component level items

C.

Final assembly level items

D.

Both subassembly level and final assembly level items

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Questions 38

A supplier making a part with a specified dimension of 50 mm + 0.3 mm changes the tolerance range to + 0.5 mm. Which ofthe following pairs correctly identifies the changes to the percentage of defective parts and the process capability index?

Options:

A.

The percentage of defective parts increases, and the process capability index increases.

B.

The percentage of defective parts increases, and the process capability index decreases.

C.

The percentage of defective parts decreases, and the process capability index increases.

D.

The percentage of defective parts decreases, and the process capability index decreases.

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Questions 39

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

Options:

A.

least total cost.

B.

min-max.

C.

lot-for-lot (L4L).

D.

periodic order quantity.

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Questions 40

In an assemble-to-order (ATO) environment, option overplanning is used to:

Options:

A.

address uncertainty in the product mix.

B.

verify appropriate inventory levels,

C.

schedule detailed production.

D.

compensatesfor forecast bias.

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Questions 41

Up-to-date information about production order status is required to do which of the following tasks?

Options:

A.

Calculate current taketime.

B.

Determine planned orders.

C.

Replenish kanban quantities.

D.

Calculate the cost of work in process (WIP).

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Questions 42

In the sales and operations planning (S&0P) process in a repetitive manufacturing environment, the resulting operationsplan for a product family could be stated in terms of which of the following outputs?

Options:

A.

A Projected labor hours

B.

Metric tons to be produced

C.

Value of products to be produced

D.

Number of products planned for shipment

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Questions 43

Which of the following activities would be effective to mitigate the bullwhip effect?

Options:

A.

Implement track and trace technology.

B.

Use a push system.

C.

Reduce lead times.

D.

Increase inventory.

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Questions 44

Which of the following tools shows process changes and random variation over time?

Options:

A.

Check sheet

B.

Control chart

C.

Histogram

D.

Pareto analysis

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Questions 45

Establishment of goals and baselines prior to entering the plan-do-check-act (FDCA) cycle allows improvement teams to:

Options:

A.

determine whether an effective change was made in the process.

B.

determine if improvement potential is complete.

C.

assure successful completion of the improvement effort.

D.

complete the project with fewer iterations.

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Exam Code: CPIM-Part-2
Exam Name: Certified in Planning and Inventory Management(Part 2)
Last Update: Oct 12, 2024
Questions: 151
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