PASS GUARANTEED CPIM-8.0 - FANTASTIC CERTIFIED IN PLANNING AND INVENTORY MANAGEMENT (CPIM 8.0) LATEST TEST DISCOUNT

Pass Guaranteed CPIM-8.0 - Fantastic Certified in Planning and Inventory Management (CPIM 8.0) Latest Test Discount

Pass Guaranteed CPIM-8.0 - Fantastic Certified in Planning and Inventory Management (CPIM 8.0) Latest Test Discount

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APICS Certified in Planning and Inventory Management (CPIM 8.0) Sample Questions (Q60-Q65):

NEW QUESTION # 60
Which of the following methods places a replenishment order when the quantity on hand falls below a predetermined level?

  • A. Min-max system
  • B. Available-to-promlse (ATP)
  • C. Fixed order quantity
  • D. Periodic review

Answer: C

Explanation:
Fixed order quantity is a method that places a replenishment order when the quantity on hand falls below a predetermined level, called the reorder point. The reorder point is calculated based on the expected demand during the lead time and the safety stock. The order quantity is fixed and constant, and it is determined by the economic order quantity (EOQ)formula or other criteria. Fixed order quantity is also known as the order point/order quantity (OP/OQ) system or the continuous review system.
Option A is not correct, because min-max system is a method that places a replenishment order when the quantity on hand falls below a minimum level, called the order point. The order quantity is variable and depends on the difference between the maximum level and the current inventory level. Min-max system is also known as the two-bin system or the bin system.
Option C is not correct, because periodic review is a method that places a replenishment order at fixed intervals of time, regardless of the quantity on hand. The order quantity is variable and depends on the difference between the target inventory level and the current inventory level. Periodic review is also known as the fixed order interval (FOI) system or the periodic order quantity (POQ) system.
Option D is not correct, because available-to-promise (ATP) is not a method of inventory replenishment, but a calculation of the uncommitted portion of the current inventory and planned production. ATP is used to promise delivery dates to customers based on the availability of inventory and production capacity.
References:
Inventory Management and Control
Inventory Replenishment Methods
Inventory Replenishment Policies


NEW QUESTION # 61
Which of the following trade-offs should be evaluated when determining where to place inventory in a multi-echelon supply chain network?

  • A. Production cost and lot size quantity
  • B. Transportation cost and delivery time
  • C. Purchase cost and shrinkage rates
  • D. Customer price and order quantity

Answer: B

Explanation:
Transportation cost and delivery time are two of the trade-offs that should be evaluated when determining where to place inventory in a multi-echelon supply chain network. A multi-echelon supply chain network consists of multiple levels of distribution, such as factories, warehouses, distribution centers, and retailers.
Placing inventory closer to the customers can reduce the delivery time and improve the service level, but it can also increase the transportation cost and the inventory holding cost. Placing inventory farther from the customers can reduce the transportation cost and the inventory holding cost, but it can also increase the delivery time and the risk of stockouts. Therefore, the optimal inventory placement depends on balancing these trade-offs and finding the lowest total cost for the desired service level. The other trade-offs are not directly related to inventory placement in a multi-echelon supply chain network. Production cost and lot size quantity are more related to inventory replenishment policies and economies of scale. Purchase cost and shrinkage rates are more related to inventory sourcing and quality control. Customer price and order quantity are more related to demand management and pricing strategies. References: Network Design and Safety Stock Placement for a Multi-Echelon Supply Chain, APICS CPIM 8 Planning and Inventory Management | ASCM


NEW QUESTION # 62
Which of the following tools shows process changes and random variation over time?

  • A. Pareto analysis
  • B. Histogram
  • C. Check sheet
  • D. Control chart

Answer: D

Explanation:
A control chart is a tool that shows process changes and random variation over time. It is a type of statistical process control (copyright) that monitors the performance of a process and detects whether it is in or out of control.
A control chart consists of a center line, an upper control limit, and a lower control limit. The center line represents the average or target value of the process. The control limits represent the acceptable range of variation withinthe process. If the data points fall within the control limits, the process is considered stable and in control. If the data points fall outside the control limits, or show a non-random pattern, the process is considered unstable and out of control, indicating the presence of special causes of variation that need to be investigated and eliminated. References:
Managing Supply Chain Operations, Chapter 9: Quality Management, Section 9.2: Statistical Process Control CPIM Exam Content Manual, Module 8: Quality, Technology and Continuous Improvement, Section
8.1: Quality Management, Subsection 8.1.2: Statistical Process Control


NEW QUESTION # 63
If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will:

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

Answer: D

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 # 64
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 in the period of the receipt.
  • C. any request for shipment prior to the demand time fence (DTF).
  • D. requests only for shipment before the next master production schedule (MPS) receipt.

Answer: D

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 # 65
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