Question 1

A manufacturer needs to monitor and balance the flow of work between work centers. Which of the following techniques would address this need?

Accepted Answer

The answer of A manufacturer needs to monitor and balance...

Question 2

Which of the following systems typically involves design while manufacturing is occurring?

Accepted Answer

In a project system, design and manufacturing often occur simultaneously, allowing for adjustments and changes during the production process.

Question 3

Which of the following information is the key output of rough-cut capacity planning?

Accepted Answer

Rough-cut capacity planning focuses on evaluating the availability of critical resources to meet production plans, ensuring that key resources are sufficient to support the master production schedule.

Question 4

Which of the following techniques deals with analysis and planning of logistics and manufacturing during various time periods?

Accepted Answer

Advanced planning and scheduling (APS) is the technique that deals with the analysis and planning of logistics and manufacturing during various time periods. APS systems use algorithms and data to optimize production planning and scheduling, inventory management, and supply chain processes to improve efficiency and reduce costs. Aggregate planning deals with planning production in aggregate or overall terms, whereas aggregate forecast involves forecasting demand for a product or service. Distribution requirements planning (DRP) is a technique that deals with managing the flow of goods from manufacturer to warehouse or distribution center to customer.

Question 5

Which of the following scheduling techniques reduces manufacturing lead times?

Accepted Answer

Overlapped scheduling reduces manufacturing lead times by starting the next operation before the previous one is completely finished, thus overlapping the processes.

Question 6

Which of the following processes commits orders against available capacity as well as inventory?

Accepted Answer

Capable-to-promise is the process that commits orders against available capacity as well as inventory. Available-to-promise only considers inventory availability, Engineered-to-order is a manufacturing strategy for customized products, and Make-to-order focuses on producing goods after customer orders are received.

Question 7

Which of the following functions of inventory exists to address unpredictable supply or demand?

Accepted Answer

Fluctuation inventory is held to address unpredictable supply and demand fluctuations. This type of inventory provides a buffer to help ensure that customer demand can be met despite unexpected changes in orders, supply chain disruptions, or other unforeseen events. Anticipation inventory is held in anticipation of future demand, hedge inventory is held to mitigate risk or uncertainty (such as in commodity markets), and transportation inventory is held to account for time lags in transportation or logistics processes.

Question 8

Which of the following terms refers to that which "pulls" production to the constraint for processing?

Accepted Answer

The term "Rope" in the Theory of Constraints refers to the mechanism that ensures production is synchronized with the constraint, effectively "pulling" work to the constraint for processing.

Question 9

Which of the following actions most likely will serve to reduce economic lot size?

Accepted Answer

Increasing the cost of carrying inventory makes it more expensive to hold large quantities, encouraging smaller lot sizes to minimize holding costs.

Question 10

A work center has 2 machines that are operated 16 hours a day for 5 days a week. Historically, the utilization has been 85% and the efficiency 105%. What is the rated capacity for this work center? (Rounded)

Accepted Answer

Rated capacity = (Operating hours per day * Number of days per week * Utilization * Efficiency) / 100= (16 * 5 * 85 * 105) / 100= 143 hours

Question 11

Consolidating shipments and reducing the frequency of pickups help to reduce which of the following types of costs?

Accepted Answer

Consolidating shipments and reducing the frequency of pickups help to reduce the total transportation costs. By consolidating shipments, companies can use larger vehicles that are more efficient in terms of fuel usage and space utilization, which reduces the total transportation costs. Additionally, by reducing the frequency of pickups, companies can reduce the transportation costs associated with each pickup.

Question 12

Economic order quantity (EOQ) is best applied when the:

Accepted Answer

Economic order quantity (EOQ) is a formula used to calculate the optimal quantity of goods to order based on the costs of ordering and holding inventory. It is mainly used for products with a uniform demand rate, as the formula assumes a constant consumption rate. Therefore, the best choice is D, when the consumption rate is uniform. None of the other options are necessarily good fits for EOQ.

Question 13

Which of the following documents is generated to show required components for a shop order?

Accepted Answer

The answer of Which of the following documents is generated...

Question 14

Part A is made from two Y's and one X. An order is received for 50 A's and there are 30 A's in stock.   What is the net requirement for X?

Accepted Answer

Net requirement = (50 - 30) * 1 = 20

Question 15

Which of the following four plant types for the theory of constraints processes one raw material into one final product?

Accepted Answer

An I-plant processes one raw material into one final product, following a linear sequence of operations.

Question 16

The ABC approach to inventory management is used primarily to:

Accepted Answer

The ABC approach is used to establish the degree of inventory control required. It categorizes inventory items based on their relative importance and provides a framework for setting priorities and establishing levels of control based on the value and usage of each item. Therefore, option D is the correct choice.

Question 17

Which of the following inventory classifications would include semi-finished goods at an outside supplier?

Accepted Answer

Semi-finished goods at an outside supplier would be considered work in process inventory as they are still in the production process and have not yet been completed into finished goods.

Question 18

The question below is based on the following information:  What is the average annual transit inventory in units?

Accepted Answer

It is impossible to determine the average annual transit inventory in units based on the given information. The code provided does not contain any information related to inventory levels or transit times.

Question 19

Earliest job due date is an example of:

Accepted Answer

Earliest job due date is a dispatching rule that prioritizes jobs based on their due dates. It is a method for scheduling and allocating resources.

Question 20

Which of the following types of inventory is characterized by item quantity gradually being depleted then replenished?

Accepted Answer

Cycle inventory is characterized by a pattern of item quantity gradually being depleted and then replenished in a cyclical fashion. This type of inventory is best seen in products with predictable consumer demand patterns, such as seasonal items or products with periodic spikes in demand.

Exam 2: CPIM - Basics of Supply Chain Management