New CPIM-8.0 Dumps For Preparing Certified Production and Inventory Management Certified APICS Exam Well

Updated CPIM-8.0 Dumps Questions Are Available [2024] For Passing APICS Exam

NEW QUESTION # 53
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?

• A. Mixed-model
• B. Line balancing
• C. Matrix
• D. Synchronized

Answer: A

Explanation:
Mixed-model scheduling is a technique that allows multiple products to be produced on the same assembly line without changeovers, and then sequences those products in a way that smoothes the demand for upstream components12. In this case, the company is using mixed-model scheduling to produce three different products (A, B, and C) on the same line, and then alternating them in a pattern that minimizes the variation in the workload and the inventory levels. The other options are not correct because:
*Matrix scheduling is a technique that assigns tasks to workers based on their skills and availability3.
*Synchronized scheduling is a technique that coordinates the production and delivery of materials and components to match the demand of the final assembly4.
*Line balancing is a technique that distributes the workload evenly among the workers or machines on a production line5. References := 1 Create Mixed Model Flow in 5 Steps | Industrial Equipment News 2 Mixed Model Scheduling - Mountain Home Academy 3 Matrix Scheduling - an overview | ScienceDirect Topics 4 Synchronized Scheduling - an overview | ScienceDirect Topics 5 Line Balancing - an overview | ScienceDirect Topics

NEW QUESTION # 54
Which of the following production activity control (PAC) techniques focuses on optimizing output?

• A. Theory of constraints (TOC) scheduling
• B. Critical path management (CPM)
• C. Gantt chart
• D. Priority sequencing rules

Answer: A

Explanation:
Theory of constraints (TOC) scheduling is a PAC technique that focuses on optimizing output by identifying and managing the bottleneck or the constraint in the production system. TOC scheduling aims to maximize the throughput of the constraint while minimizing the inventory and operating expenses. Gantt chart, priority sequencing rules, and critical path management (CPM) are other PAC techniques, but they do not specifically focus on optimizing output. Gantt chart is a graphical tool that shows the planned and actual start and finish dates of activities. Priority sequencing rules are methods of determining the order of processing jobs based on criteria such as due date, slack time, or processing time. CPM is a network analysis technique that identifies the longest path of activities in a project and the minimum time required to complete it. References:
APICS CPIM Part 2 Exam Content Manual, p. 29
[APICS CPIM Learning System Version 8.0], Module 4, Section C, p. 4-25

NEW QUESTION # 55
The planned channels of Inventory disbursement from one or more sources to field warehouses are known as:

• A. interplant demand.
• B. a supply chain community.
• C. a bill of distribution.
• D. logistics data interchange (LDI).

Answer: C

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 # 56
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. Concurrent engineering
• D. Quality function deployment (QFD)

Answer: C

NEW QUESTION # 57
When starting an external benchmarking study, a firm must first:

• A. understand its own processes and document performance.
• B. identify the target firms with which to benchmark against.
• C. determine its areas of weakness versus the competition's.
• D. determine the metrics which will be measured and compared.

Answer: A

Explanation:
External benchmarking is a strategic tool where a company compares its processes and performance metrics to industry bests or competitors1. Before starting an external benchmarking study, a firmmust first understand its own processes and document performance, so that it can identify the gaps and opportunities for improvement.
This is also a requirement for regulatory compliance2. Without a clear understanding of its own processes and performance, a firm cannot effectively benchmark against others or set realistic goals and strategies.
References:
*What Is External Benchmarking? (with picture) - Smart Capital Mind
*5 Strategies for Effective ASC External Benchmarking - Becker's ASC

NEW QUESTION # 58
A manufacturer has a primary assembly line supported by output from several subassembly lines. Which of the following scenarios would be the best argument for a multilevel master scheduling process?

• A. High variation in aggregate subassembly demand
• B. Low variation in subassembly demand mix
• C. Low variation in aggregate subassembly demand
• D. High variation in subassembly demand mix

Answer: D

Explanation:
A multilevel master scheduling process is a method of planning and managing the production of complex products that have multiple levels of components and subassemblies. A multilevel master schedule (MMS) breaks down the end product into its constituent parts and assigns a master schedule for each level, taking into account the lead times, lot sizes, and availability of each component. A multilevel master scheduling process is beneficial when there is high variation in subassembly demand mix, which means that the proportion of different types of subassemblies required for the end product changes frequently. This scenario creates a challenge for coordinatingthe supply and demand of subassemblies across multiple levels, and a multilevel master scheduling process can help to balance the inventory and capacity of each level, reduce the risk of stockouts or excess inventory, and improve customer service levels. References := CPIM Part 2 Exam Content Manual, Version 8.0, ASCM, 2021, p. 23. CPIM Part 2 Learning System, Version 8.0, Module 2, Section B,

NEW QUESTION # 59
The primary reason for tracing a component with scheduling problems to Its master production schedule (MPS) item is to:

• A. reschedule a related component on the shop floor.
• B. revise the rough-cut capacity plan.
• C. determine if a customer order will be impacted.
• D. check the accuracy of the bills for the MPS items.

Answer: C

Explanation:
The primary reason for tracing a component with scheduling problems to its master production schedule (MPS) item is to determine if a customer order will be impacted. The MPS is a plan that specifies the quantity and timing of the end products or product families that the company intends to produce and deliver to the customers. The MPS is derived from the sales and operations plan (S&OP) and the customer orders, and it drives the material requirements planning (MRP) and the capacity requirements planning (CRP). A component with scheduling problems is a part or material that has a discrepancy between its planned and actual availability, such as a shortage, a delay, or an excess. Tracing a component with scheduling problems to its MPS item means identifying which end product or product family uses that component in its bill of materials (BOM), and how the component's availability affects the production and delivery of that end product or product family. This helps to determine if a customer order will be impacted by the component's scheduling problem, and to take appropriate actions to prevent or mitigate the impact, such as rescheduling, expediting, substituting, or communicating with the customer. The other options are not correct, as they are not the primary reason for tracing a component with scheduling problems to its MPS item, but rather possible actions or outcomes of the tracing process:
Revising the rough-cut capacity plan is a possible action that may result from tracing a component with scheduling problems to its MPS item, if the component's availability affects the capacity of the critical resources that are needed to produce the MPS item. Rough-cut capacity planning (RCCP) is a process of verifying the feasibility of the MPS in terms of the available capacity of critical resources, such as key machines or labor skills. RCCP may need to be revised if the MPS changes due to the component's scheduling problem, or if the component's scheduling problem reveals a capacity issue that needs to be resolved.
Rescheduling a related component on the shop floor is a possible action that may result from tracing a component with scheduling problems to its MPS item, if the component's availability affects the production sequence or priority of other components that are used in the same MPS item. Rescheduling a related component on the shop floor means changing the planned start or finish date of the component's production order, based on the current shop floor conditions and the MPS requirements.
Rescheduling may help to optimize the production flow, reduce the lead time, or avoid the impact of the component's scheduling problem on the MPS item.
Checking the accuracy of the bills for the MPS items is a possible outcome that may result from tracing a component with scheduling problems to its MPS item, if the component's availability reveals an error or inconsistency in the bills for the MPS items. Bills for the MPS items are documents that list the components and their quantities that are required to produce a unit of an end product or product family.
Bills for the MPS items are used to calculate the material requirements for the MPS items, and to generate the planned orders for the components. Checking the accuracy of the bills for the MPS items means verifying that the bills reflect the correct and current product structure, specifications, and quantities, and that they are consistent with the actual production process and the customer orders.
References:
[CPIM Part 2 - Section A - Topic 1 - Sales and Operations Planning]
[CPIM Part 2 - Section A - Topic 2 - Capacity Planning]
Master Production Schedule (MPS)
What is a Component? | Definition, Types, & Examples
Tracing a Component to Its MPS Item
Rough Cut Capacity Planning (RCCP)
[Rescheduling]
[Bill of Materials (BOM)]

NEW QUESTION # 60
Which of the following factors Is considered a carrying cost?

• A. Setup
• B. Obsolescence
• C. Transportation
• D. Scrap rate

Answer: B

Explanation:
Carrying cost is the total cost of holding and storing inventory. It includes various expenses such as storage, insurance, taxes, depreciation, and obsolescence. Obsolescence is the loss of value or usefulness of inventory due to changes in technology, customer preferences, or market conditions. Obsolescence is considered a carrying cost because it reduces the potential revenue that can be generated from selling the inventory. Setup, transportation, and scrap rate are not carrying costs, but rather order costs, logistics costs, and quality costs respectively. References: CPIM Part 1 - Section A: Introduction to Supply Chain Management - Module 1:
Basics of Supply Chain Management - Session 1.4: Inventory - Inventory Costs. CPIM Part 1 Study Guide, pp.
1-32 - 1-33.

NEW QUESTION # 61
Exhibit:

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

• A. Customer C has higher service level
• B. Customer B and C have same service level
• C. 100% service levels for B and C
• D. Customer B has higher service level

Answer: D

Explanation:
Customer service level is the percentage of customer orders that are fulfilled on time and in full1. A company that prioritizes customers A, B, and C, filling orders in that sequence, will have different impacts on the service levels for customers B and C, depending on the availability of stock and theorder quantities. Based on the table in the exhibit, customer B will have a higher service level than customer C, because customer B will receive all the ordered units for item 468 and item 617, while customer C will only receive partial units for item 468 and none for item 617. Customer C will also receive none of the ordered units for item 643, while customer B will receive some of them. Therefore, customer B will have a higher percentage of orders fulfilled on time and in full than customer C. References: 1 Customer Service Level: Definition, Standards, Measuring | SupportYourApp 2

NEW QUESTION # 62
A reduction In purchased lot sizes will reduce which of the following items?

• A. Setuptimes
• B. Inventory levels
• C. Frequency of orders
• D. Reorder points (ROPs)

Answer: B

Explanation:
A reduction in purchased lot sizes means ordering smaller quantities of materials more frequently. This reduces the average inventory level and the carrying cost of inventory. However, it also increases the frequency of orders and the ordering cost. The reorder point (ROP) is the level of inventory that triggers a new order, and it depends on the demand rate, the lead time, and the safety stock. The ROP is not affected by the lot size, unless the demand or the lead time changes. The setup time is the time required to prepare a machine or a process for production, and it is not related to the purchased lot size. References: EXAM CONTENT MANUAL PREVIEW, page 14, section 6.1.2. Manufacturing Planning and Control for Supply Chain Management: The CPIM Reference, Second Edition, page 433, section 12.4.

NEW QUESTION # 63
The primary benefit that results from the cross-training of employees is:

• A. effective problem-solving.
• B. shortened lead time.
• C. improved capacity.
• D. improved flexibility.

Answer: D

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 # 64
Global outsourcing and shared suppliers serving an industry are drivers of which category of risk?

• A. Supply disruptions
• B. Procurement problems
• C. Loss of intellectual property
• D. Forecast inaccuracy

Answer: C

Explanation:
Global outsourcing and shared suppliers serving an industry are drivers of loss of intellectual property risk, which is the risk of losing proprietary information or technology to competitors or other parties. This risk can arise from inadequate protection of data, contracts, patents, or trade secrets, or from intentional or unintentional disclosure by suppliers or employees. Loss of intellectual property can result in reduced competitive advantage, lower market share, or legal disputes. References := CPIM Part 2 Exam Content Manual, Version 8.0, ASCM, 2021, p. 11. CPIM Part 2 Learning System, Version 8.0, Module 1, Section A,

NEW QUESTION # 65
Price negotiation is most appropriate when purchasing which of the following product categories?

• A. Standard products
• B. Made-to-order (MTO) items
• C. Items of small value
• D. Commodities

Answer: D

Explanation:
Price negotiation is most appropriate when purchasing commodities. Commodities are products or materials that are standardized, widely available, and have low differentiation. Examples of commodities include metals, grains, oil, gas, etc. Price negotiation is a process of bargaining with the supplier to obtain the best possible price for the purchase. Price negotiation is suitable for commodities because they have high price volatility, meaning that their prices fluctuate frequently and unpredictably due to changes in supply and demand, market conditions, and other factors. Price negotiation can help the buyer to take advantage of the price fluctuations and secure a lower price or a better contract term with the supplier. Price negotiation can also help the buyer to reduce the total cost of ownership, which includes not only the purchase price but also the costs of transportation, storage, quality, and risk12. References: 1 How to negotiate price: negotiation tips for salespeople 3 2 CPIM Exam References - Association for Supply Chain Management 1

NEW QUESTION # 66
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?

• A. Produceto the sales forecast
• B. Produceto backorders
• C. Produceat a constant level
• D. Produceto demand

Answer: D

Explanation:
Producing to demand is a strategy that adjusts the production output to match the actual customer demand.
This strategy is most appropriate during times of highly fluctuating demand, as it can reduce the inventory carrying costs and avoid overproduction or underproduction. Producing to demand can also improve customer satisfaction and responsiveness, as well as reduce waste and obsolescence. However, producing to demand requires a flexible and adaptable workforce that can easily change its capacity and skills to meet the changing demand patterns. The other options, producing to backorders, producing at a constant level, and producing to the sales forecast, are not as effective as producing to demand during times of highly fluctuating demand, as they can result in higher inventory costs, lower customer service, and lower profitability. References:
Demand-Driven Manufacturing: What It Is and Why You Need It
Demand-Driven Manufacturing: How to Optimize Your Production Process
Demand-Driven Manufacturing: A Guide for Modern Manufacturers

NEW QUESTION # 67
Components of an organization's Immediate industry and competitive environment Include:

• A. substitute products.
• B. political factors.
• C. sociocultural forces.
• D. interest rates.

Answer: A

Explanation:
Substitute products are components of an organization's immediate industry and competitive environment.
They are products or services that can satisfy the same customer needs or wants as the organization's offerings, but are provided by different industries or markets. Substitute products can affect the demand, price, and profitability of the organization's products, and require the organization to monitor and respond to the changes in customer preferences and competitive pressures. Political factors, interest rates, and sociocultural forces are examples of macroenvironmental factors, which are broader and more general forces that affect the organization and its industry, but are not directly related to its competitors or customers. References := CPIM Exam Content Manual, Module 1: Supply Chains and Strategy, Section 1.1: Business Strategy, p.
4
Strategic Supply Chain Management: The Five Core Disciplines for Top Performance, Chapter 2: Align Your Supply Chain with Business Strategy, Section 2.2: Assessing the External Environment, pp. 25-26

NEW QUESTION # 68
If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will:

• A. increase at an increasing rate.
• B. remain the same.
• C. increase at a decreasing rate.
• D. increase in direct (linear) proportion.

Answer: C

Explanation:
Increasing finished goods inventory investment will improve service levels by reducing the probability of stockouts. However, the relationship between inventory and service level is not linear, but rather asymptotic.
This means that as inventory increases, service level increases at a decreasing rate, approaching a maximum value. Therefore, option C is correct. Option A is incorrect because service level will not remain the same when inventory changes. Option B is incorrect because service level will not increase in direct proportion to inventory. Option D is incorrect because service level will not increase at an increasing rate as inventory increases. References: CPIM Part 2 Exam Content Manual, Version 8.0, Section A: Demand Management, Subsection A.3: Demand Management and Customer Service, p. 10.

NEW QUESTION # 69
The primary purpose for engaging in cycle count activities is to:

• A. smooth out the tasks of counting inventory throughout the fiscal year.
• B. more frequently reconcile the actual on-hand and system on-hand for items.
• C. eliminate the need for a traditional physical inventory count.
• D. improve material handling processes and reduce or eliminate errors.

Answer: B

Explanation:
Cycle count is an inventory management technique that involves counting a subset of inventory items on a regular basis, usually based on some sampling criteria1. The primary purpose of cycle count is to more frequently reconcile the actual on-hand and system on-hand for items, which helps to ensure inventory accuracy, identify and correct errors, and avoid stockouts or overstocking23. Cycle count does not eliminate the need for a traditional physical inventory count, but it can reduce its frequency and disruption4. Cycle count also does not smooth out the tasks of counting inventory throughout the fiscal year, but rather distributes them according to a predetermined schedule5. Cycle count may indirectly improve material handling processes and reduce or eliminate errors, but this is not its primary purpose. References:
*What is cycle count in inventory management?
*Inventory Cycle Counting 101: Best Practices & Benefits
*Understanding The Cycle Count In Inventory Management
*What is Inventory Cycle Counting?: A 2023 Guide
*Cycle Count: Everything A Warehouse Manager Should Know
*[CPIM Part 2 Exam Content Manual], p. 40

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. Concurrent engineering
• D. Quality function deployment (QFD)

Answer: C

Explanation:
Concurrent engineering is a product design approach that involves the simultaneous and collaborative involvement of different functional areas, such as engineering, marketing, manufacturing, and suppliers, in the product development process. Concurrent engineering aims to reduce time to market, improve quality, lower costs, and enhance customer satisfaction by integrating and coordinating the inputs and feedback of all the stakeholders from the early stages of design. Concurrent engineering can also facilitate the standardization and modularization of product components, which can improve the flexibility and responsiveness of a global supply chain. References:
Managing Supply Chain Operations, Chapter 3: Product Design and Development, Section 3.2:
Concurrent Engineering
CPIM Exam Content Manual, Module 1: Supply Chains and Strategy, Section 1.3: Product and Process Design, Subsection 1.3.1: Product and Process Design Concepts

NEW QUESTION # 71
The production plan defines which of the following targets?

• A. Quantities of each product to be produced
• B. Level of output to be produced
• C. Business plans for the company
• D. Sales forecast

Answer: B

Explanation:
The production plan is a high-level plan that defines the level of output to be produced for each product family or group in a given time period. It is based on the sales forecast, the aggregate production capacity, and the desired inventory levels. The production plan does not specify the quantities of each individual product to be produced, as this is done in the master production schedule. The production plan also does not include the sales forecast or the business plans for the company, as these are inputs to the production plan, not outputs12 References:
Introduction to Materials Management, 8th ed., 2017, Chapman, Stephen N., J. R. Tony Arnold, Ann K.
Gatewood, and Lloyd M. Clive, ISBN: 978-0134156323, Chapter 11: Production Planning System Manufacturing Planning and Control for Supply Chain Management, The CPIM Reference, 2nd ed.,
2018, Jacobs, F. Robert, William L. Berry, D. Clay Whybark, and Thomas E. Vollmann, ISBN:
978-1260108385, Chapter 6: Production Planning Strategies

NEW QUESTION # 72
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. Uselevel production planning and investigate subcontracting to meet the extra demand.
• C. Usehybridproduction planningto save labor costs and inventory costs in the low demand season.
• D. Usechaseproduction planningand only take the orders that can be produced In the highdemand season.

Answer: B

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 # 73
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