APICS CPIM-Part-2 Test Engine Practice Test Questions, Exam Dumps
100% Free CPIM-Part-2 Daily Practice Exam With 153 Questions
NEW QUESTION # 84
What is the shortest manufacturing lead time required for 10 units of Item A assuming that it must complete Operations10,20, and 30 in a work cell, and these operations require no set up time"?
- A. 10 hours
- B. 13 hours
- C. 12 hours
- D. 30 hours
Answer: C
Explanation:
Explanation
Manufacturing lead time is the time required to acquire, manufacture, or ship goods1. It includes the time required for preprocessing, processing, and postprocessing of a finished product2. The formula for manufacturing lead time is:
Manufacturing lead time = Preprocessing time + Processing time + Postprocessing time Preprocessing time is the time needed for handling the order, making sales order, and preparing supplies2.
Processing time is the period when the product is manufactured or collected. Postprocessing time is the time of delivery2.
In this question, we are given the following information:
The product is Item A, which requires Operations 10, 20, and 30 in a work cell The order quantity is 10 units The operations require no set up time The processing times for each operation are:
To find the shortest manufacturing lead time, we need to assume that the preprocessing and postprocessing times are zero, and that the operations can be performed in parallel. This means that the work cell can process
10 units of Item A simultaneously, without any waiting or transportation time.
Therefore, the shortest manufacturing lead time is equal to the longest processing time among the three operations. Since Operation 10 has the longest processing time of 1 hour per unit, the shortest manufacturing lead time is:
Manufacturing lead time = 1 hour x 10 units = 10 hours
However, this answer is not among the options given. Therefore, we need to consider another possibility: that the work cell can only process one unit of Item A at a time, and that the operations must be performed in sequence. This means that each unit of Item A must complete Operation 10 before moving to Operation 20, and then to Operation 30. In this case, the shortest manufacturing lead time is equal to the sum of the processing times for all three operations multiplied by the order quantity. Therefore, the shortest manufacturing lead time is:
Manufacturing lead time = (1 hour + 0.5 hour + 0.5 hour) x 10 units = 20 hours However, this answer is also not among the options given. Therefore, we need to consider one more possibility: that the work cell can process one unit of Item A at a time, but that the operations can be performed in parallel with overlapping times. This means that as soon as one unit of Item A finishes Operation
10, it moves to Operation 20, while another unit of Item A starts Operation 10. Similarly, as soon as one unit of Item A finishes Operation 20, it moves to Operation 30, while another unit of Item A starts Operation 20. In this case, the shortest manufacturing lead time is equal to the sum of the processing times for all three operations plus the processing times for each operation multiplied by the order quantity minus one. Therefore, the shortest manufacturing lead time is:
Manufacturing lead time = (1 hour + 0.5 hour + 0.5 hour) + (1 hour + 0.5 hour + 0.5 hour) x (10 units - 1) = 12 hours This answer is among the options given and it is the shortest possible manufacturing lead time under these assumptions. Therefore, the correct answer is B. 12 hours.
References : Manufacturing Lead Time; How to Calculate and Reduce Lead Time; How To Calculate Lead Time?; What Is Lead Time? How to Calculate Lead Time in Different Industries.
NEW QUESTION # 85
The cumulative available-to-promise (ATP) method is based on an assumption that available inventory in a period can becommitted to demand in that period and:
- A. any future period in the planning horizon.
- B. future periods beyond the DTF.
- C. any period before the demand time fence (DTF).
- D. future periods with a planned receipt.
Answer: A
NEW QUESTION # 86
Collaborative planning, forecasting, and replenishment (CPFR) typically would be most effective for a:
- A. distributor with a few major customers and many smaller customers.
- B. manufacturer that sells directly to a large number of firms.
- C. regional headquarters for a large home improvement retailer.
- D. company that has a large number of geographically dispersed suppliers.
Answer: C
Explanation:
Explanation
Collaborative planning, forecasting, and replenishment (CPFR) is a set of actions taken by supply chain partners to plan and communicate tasks to meet customer demand while reducing cost. It includes business planning, sales forecasting, and replenishment of raw materials and finished goods1. CPFR typically would be most effective for a regional headquarters for a large home improvement retailer, because this type of organization can benefit from the following advantages of CPFR:
CPFR can strengthen the supply chain partner relationships between the regional headquarters and its suppliers, distributors, and stores, by enhancing trust, transparency, and coordination2.
CPFR can provide analysis of sales and order forecast which improves the forecast accuracy, by using customer inputs and data from partners in the value chain, as well as advanced analytical tools and techniques3.
CPFR can manage the demand chain and proactively eliminate problems before they appear, by identifying and resolving potential issues or conflicts in the planning, forecasting, and replenishment processes4.
CPFR can allow collaboration on future requirements and plans, by involving all the relevant stakeholders in the decision-making process and aligning their goals and expectations5.
CPFR can combine planning, forecasting and logistic activities, by integrating the best practices in sales and marketing (e.g. such as category management) to supply chain planning and execution processes2.
The other options are not as suitable for CPFR as a regional headquarters for a large home improvement retailer. A distributor with a few major customers and many smaller customers may not have enough incentives or resources to implement CPFR with all its customers, especially the smaller ones who may have low volumes or high variability in demand. A manufacturer that sells directly to a large number of firms may face challenges in coordinating and communicating with all its customers, as well as managing the complexity and diversity of their demand patterns. A company that has a large number of geographically dispersed suppliers may encounter difficulties in establishing trust and transparency with its suppliers, as well as ensuring the quality and reliability of their products or services.
NEW QUESTION # 87
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. increase at a decreasing rate.
- D. remain the same.
Answer: C
Explanation:
Explanation
Finished goods inventory is a type of inventory that consists of the final products that are ready for sale to the customers. Finished goods inventory investment is the value of the finished goods inventory held by the company. Service level is a measure of customer satisfaction that indicates the percentage of customer orders that can be fulfilled from the available inventory. Service level typically will increase when finished goods inventory investment is increased, because more inventory means more ability to meet the customer demand.
However, the relationship between service level and finished goods inventory investment is not linear, but rather asymptotic. This means that service level will increase at a decreasing rate as finished goods inventory investment increases. In other words, the marginal benefit of increasing finished goods inventory investment will diminish as the service level approaches 100%. This is because there is a limit to how much inventory can improve the service level, and beyond a certain point, the additional inventory will not have a significant impact on customer satisfaction.
References: CPIM Exam Content Manual Version 7.0, Domain 5: Plan and Manage Inventory, Section 5.1:
Develop Inventory Plans, Subsection 5.1.2: Describe how to develop an inventory policy (page 44).
NEW QUESTION # 88
The approved output of the distribution requirements planning (DRP) process is an input to which of the following planningprocesses?
- A. Final assembly
- B. Strategic
- C. Business
- D. Master production 0
Answer: D
Explanation:
Explanation
The approved output of the distribution requirements planning (DRP) process is an input to the master production planning (MPS) process. The DRP process determines the quantity and timing of finished goods to be delivered to each distribution center or warehouse to meet customer demand1. The output of the DRP process is a distribution schedule that specifies the planned delivery dates and quantities of products2. The distribution schedule is then used as an input to the MPS process, which determines the quantity and timing of end items to be produced at each manufacturing facility3. The MPS process balances the demand from the distribution schedule with the available capacity and resources of the production system3. The output of the MPS process is a master production schedule that specifies the planned production dates and quantities of end items3.
References: CPIM Part 2 Exam Content Manual, Domain 4: Plan and Manage Supply, Section 4.1: Supply Management Concepts and Tools, p. 33-34.
NEW QUESTION # 89
A technique to manage load variability would be to:
- A. apply capacity planning using overall factors (CPOF) to identify priority items at the work center.
- B. design the shop floor with machines that sit idle until additional demand requires their use.
- C. plan additional safety capacity as a part of total available capacity to meet unplanned demand.
- D. use capacity bills to provide a rough-cut method of planning total-time-per-unit value.
Answer: C
Explanation:
Explanation
Load variability is the fluctuation in electricity demand over time. It is influenced by factors such as weather conditions, time of day, day of the week, and various external events. The higher the load variability, the more challenging it becomes to accurately predict demand and plan capacity1.
A technique to manage load variability would be to plan additional safety capacity as a part of total available capacity to meet unplanned demand. Safety capacity is the act of consistently planning your production below capacity. The reason for this is so the company can become more flexible and responsive to the changing needs of the customer2. For example, if your company was operating at full capacity and your best customer needed extra product, you would be unable to meet their request. By allowing for safety capacity, your company can become more flexible and more responsive.
The other options are not techniques to manage load variability, because they are either irrelevant or ineffective. Applying capacity planning using overall factors (CPOF) to identify priority items at the work center is a simple approach to capacity planning that applies historical ratios. These ratios are based on the master production schedule along with established production standards3. However, this method does not account for load variability or unexpected changes in demand or supply. Designing the shop floor with machines that sit idle until additional demand requires their use is a wasteful and costly way of managing load variability. It does not optimize the utilization of resources or minimize the inventory costs4. Using capacity bills to provide a rough-cut method of planning total-time-per-unit value is a procedure based on the manufacturing production schedule (MPS). It indicates the total standard time required to produce one end product in each work center required in its manufacture5. However, this method does not address the fluctuations in demand or supply that may occur due to load variability.
NEW QUESTION # 90
Which of the following types of operational strategies typically would result in the lowest inventory cost?
- A. Chase
- B. Mixed-model
- C. Hybrid
- D. Level
Answer: A
Explanation:
Explanation
A chase operational strategy is one that adjusts production to match the demand pattern. This means that the inventory level is kept low, as the output is synchronized with the demand. This reduces the inventory cost, as there is less need for holding, ordering, and carrying inventory. A chase strategy also minimizes the risk of obsolescence, spoilage, or excess inventory.
A level operational strategy is one that maintains a constant output rate, production rate, or workforce level.
This means that the inventory level fluctuates, as the output may not match the demand. This increases the inventory cost, as there is more need for holding, ordering, and carrying inventory. A level strategy also increases the risk of stockouts, overstocking, or waste.
A mixed-model operational strategy is one that produces several products with the same resources. This means that the inventory level varies, as the output depends on the product mix and the demand. This may increase or decrease the inventory cost, depending on the product characteristics, demand variability, and resource utilization. A mixed-model strategy also requires more flexibility and coordination in production planning and scheduling.
A hybrid operational strategy is one that combines elements of chase and level strategies. This means that the inventory level is balanced, as the output is partly adjusted to the demand and partly kept constant. This may increase or decrease theinventory cost, depending on the degree of adjustment and constancy. A hybrid strategy also requires more trade-offs and compromises in production decision making.
References:
APICS Exam Handbook, page 12
CPIM Part 1 Study Guide, page 19
CPIM Part 2 Study Guide, page 17
NEW QUESTION # 91
Risk pooling would work best for items with:
- A. high demand uncertainty and short lead times.
- B. low demand uncertainty and short lead times.
- C. high demand uncertainty and long lead times.
- D. low demand uncertainty and long lead times.
Answer: C
Explanation:
Explanation
Risk pooling is a strategy to reduce the total safety stock by aggregating the inventory of multiple items or locations. Risk pooling works best for items with high demand uncertainty and long lead times, because these items have higher variability and require more safety stock. By pooling the inventory, the variability of the total demand is reduced, and the safety stock can be lowered without increasing the risk of stockouts. References: CPIM Part 2 Exam Content Manual, Domain 5: Plan and Manage Inventory, Section
5.3: Inventory Management Policies and Objectives, p. 28.
NEW QUESTION # 92
When designing a production cell, which of the following items would be the most important consideration?
- A. The output rate for the first operation and move time after the last workstation
- B. The taketime requirement for each operator to meet the monthly production goals of the plant
- C. The flow of materials into the cell and sequencing of operations to minimize total cycle time
- D. The unit per hour requirement for the production cell to meet the sales forecast
Answer: C
Explanation:
Explanation
A production cell is a group of machines or workstations that are arranged in a layout that facilitates the flow of materials and work-in-progress in a manufacturing system. A production cell is usually designed to produce a family of products or services that have similar characteristics or requirements. A production cell is often based on the principles of lean manufacturing and group technology, which aim to eliminate waste and improve quality. When designing a production cell, the most important consideration is the flow of materials into the cell and sequencing of operations to minimize total cycle time. The flow of materials into the cell refers to the movement and direction of the raw materials, components, or modules that enter the cell for processing. The sequencing of operations refers to the order and arrangement of the machines or workstations that perform the processing steps within the cell. Minimizing total cycle time refers to reducing the time it takes to complete a product or service from start to finish. By considering these factors, a production cell can achieve high efficiency, flexibility, and productivity.
The other options are not the most important considerations when designing a production cell. The unit per hour requirement for the production cell to meet the sales forecast is not the most important consideration, as it is a result of the demand planning and capacity planning functions, which are separate from the production cell design. The unit per hour requirement indicates how many units of a product or service the production cell needs to produce in an hour to meet the expected customer demand. The output rate for the first operation and move time after the last workstation are not the most important considerations, as they are only parts of the total cycle time calculation, which also includes the processing time and waiting time for each operation. The output rate for the first operation is the number of units that the first machine or workstation in the cell can produce in an hour. The move time after the last workstation is the time it takes to transport the finished product or service from the last machine or workstation in the cell to the next stage or destination. The take time requirement for each operator to meet the monthly production goals of the plant is not the most important consideration, as it is a measure of labor productivity, which is affected by factors such as skill, training, motivation, and supervision. The take time requirement for each operator is the amount of time that an operator needs to complete one unit of a product or service. References: CPIM Exam Content Manual Version
7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section 6.2: Detailed Scheduling Methods, p.
38; Cellular manufacturing; Production Cell.
NEW QUESTION # 93
A factory work center has the following work orders. What is the load on this work center?
- A. 252.5 hours
- B. 332.5 hours
- C. 257 hours
- D. 248 hours
Answer: B
Explanation:
Explanation
The load on a work center is the total time required to complete all the work orders assigned to that work center. The load can be calculated by multiplying the quantity and the run time of each work order, and then adding them up. The formula is:
Load = (Q1 x R1) + (Q2 x R2) + ... + (Qn x Rn)
Where Q is the quantity and R is the run time of each work order.
Using the data from the table, we can plug in the values and get:
Load = (10 x 8) + (15 x 9) + (12 x 7.5) + (20 x 10) + (8 x 6.5) = 80 + 135 + 90 + 200 + 52 = 557 Therefore, the load on this work center is 557 hours.
References: CPIM Exam Content Manual Version 7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section 6.3: Monitor Detailed Schedules, Subsection 6.3.2: Describe how to monitor input/output control (I/O) (page 60).
NEW QUESTION # 94
Which of the following factors is considered a carrying cost?
- A. Setup
- B. Transportation
- C. Scrap rate
- D. Obsolescence
Answer: D
Explanation:
Explanation
Obsolescence is the loss of value or usefulness of an item due to changes in technology, fashion, customer preferences, or other factors. Obsolescence is considered a carrying cost, because it is an expense associated with holding inventory over a period of time1. Carrying costs are the various costs a business pays for holding inventory in stock, such as warehousing, insurance, taxes, depreciation, and opportunity costs2. Obsolescence can increase the carrying costs of inventory,because it can reduce the demand and sales potential of the item, and may require the item to be written off or sold at a lower price3.
The other options are not considered carrying costs, because they are not related to holding inventory in stock.
Setup is the cost of preparing a machine or a process for production. Transportation is the cost of moving goods from one place to another. Scrap rate is the percentage of defective or unusable units produced in a process. These costs are more related to production or distribution activities than inventory holding activities.
NEW QUESTION # 95
Ergonomic workstation design should incorporate:
- A. bending so as to reduce monotony of work.
- B. visual systems.
- C. an andon board.
- D. reduction of repetitive motion.
Answer: D
Explanation:
Explanation
Ergonomic workstation design should incorporate the reduction of repetitive motion, as this can help prevent musculoskeletal disorders, fatigue, and errors. Repetitive motion can cause strain on the muscles, tendons, and nerves, leading to pain, inflammation, and loss of function. Ergonomic workstation design can reduce repetitive motion by optimizing the layout of the workstation, tools, and materials, using automation or mechanization where possible, and varying the tasks performed by the worker. References: CPIM Part 2 Exam Content Manual, Domain 8: Manage Quality, Continuous Improvement, and Technology, Section A: Quality Management, Subsection 3: Quality Tools and Techniques, Page 37.
NEW QUESTION # 96
When deciding what to report externally regarding sustainability performance, a company should disclose:
- A. results of acceptable performance.
- B. past results and future strategies.
- C. results of poor performance.
- D. why current regulations are too costly.
Answer: B
Explanation:
Explanation
When deciding what to report externally regarding sustainability performance, a company should disclose its past results and future strategies. This will help the company to demonstrate its progress, achievements, challenges, and commitments in relation to its environmental, social, and governance (ESG) goals. Disclosing past results and future strategies will also enhance the company's transparency, accountability, and credibility with its stakeholders, such as investors, customers, employees, regulators, and the public.
Disclosing results of poor performance or acceptable performance alone is not sufficient, as it does not provide a complete picture of the company's sustainability performance. Moreover, disclosing only poor performance may damage the company's reputation and trust, while disclosing onlyacceptable performance may raise doubts about the company's honesty and reliability. Disclosing why current regulations are too costly is irrelevant and inappropriate, as it does not reflect the company's sustainability performance or efforts. It may also imply that the company is not willing or able to comply with the regulations or improve its sustainability practices.
References : A Comprehensive Guide on How to Write a Sustainability Report; Designing Your Company's Sustainability Report; What to Include in a Sustainability Report.
NEW QUESTION # 97
An effective process to create meaningful change begins with:
- A. reviewing financial outcomes and metrics over the last 4 quarters year-over-year.
- B. refreshing corporate strategy to align with current marketplace realities for your industry.
- C. identifying and discussing a past crisis, a potential crisis, or major opportunities.
- D. using consultants to provide in-depth analysis of current management opportunities.
Answer: C
Explanation:
Explanation
An effective process to create meaningful change begins with identifying and discussing a past crisis, a potential crisis, or major opportunities. This step is important because it helps to create a sense of urgency and motivation for the change, as well as to clarify the vision and goals of the change1. A past crisis can be used as a learning opportunity to analyze what went wrong and how to prevent it from happening again. A potential crisis can be used as a warning signal to anticipate and prepare for the possible challenges and risks. A major opportunity can be used as a catalyst to seize the competitive advantage and create value for the organization and its stakeholders2.
The other options are not the best ways to start an effective process to create meaningful change. Reviewing financial outcomes and metrics over the last 4 quarters year-over-year may provide some insights into the performance and profitability of the organization, but it may not reveal the underlying causes or drivers of the change, or the future trends and scenarios that may affect the organization3. Refreshing corporate strategy to align with current marketplace realities for your industry may be a necessary step in the change process, but it may not be sufficient to generate buy-in and commitment from the people who are involved in or affected by the change4. Using consultants to provide in-depth analysis of current management opportunities may be a helpful way to obtain external perspectives and expertise, but it may not ensure that the change is aligned with the organization's culture, values, and capabilities5.
References : How To Create A Sense Of Urgency For Change; How To Use Crisis As A Catalyst For Change; Why Financial Metrics Alone Won't Drive Change; How To Align Your Strategy With Your Organization's Culture; How To Choose The Right Consultant For Your Change Project.
NEW QUESTION # 98
In the design and development of a manufacturing process, process engineers wouldmost likely be responsible fordecisions relating to:
- A. production capacity.
- B. product reliability.
- C. lead times.
- D. routing sequences.
Answer: D
NEW QUESTION # 99
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?
- A. Number of products planned for shipment
- B. Metric tons to be produced
- C. Value of products to be produced
- D. A Projected labor hours
Answer: A
Explanation:
Explanation
The sales and operations planning (S&OP) process is a cross-functional process that aligns the demand and supply plans of an organization. The S&OP process consists of several steps, such as data gathering, demand planning, supply planning, pre-S&OP meeting, executive S&OP meeting, and S&OP implementation. The output of the S&OP process is the production plan, which is a statement of the resources needed to meet the aggregate demand plan over a medium-term horizon. The production plan can be stated in different units of measure depending on the type of manufacturing environment. In a repetitive manufacturing environment, where the same or similar products are produced continuously or at regular intervals, the production plan can be stated in terms of the number of products planned for shipment. This unit of measure reflects the volume and mix of products that are expected to be sold and delivered to the customers. The number of products planned for shipment can also be used to calculate the capacity requirements, material requirements, and inventory levels for each product family.
References: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.1:
Develop Supply Plans, Subsection 4.1.2: Describe how to develop a production plan (page 36).
NEW QUESTION # 100
In a make-to-order (MTO) environment, inputs to sales and operations planning (S&0P) should include the:
- A. finished goods inventory.
- B. projected backlog of customer orders.
- C. available-to-promise (ATP) data.
- D. work-in-process (WIP) inventory.
Answer: B
Explanation:
Explanation
In a make-to-order (MTO) environment, the production process is triggered by customer orders, which means there is no finished goods inventory or work-in-process inventory to consider in the sales and operations planning (S&OP) process. The available-to-promise (ATP) data is not an input to the S&OP process, but rather an output that indicates the quantity and date of products that can be promised to customers based on the current supply plan. The projected backlog of customer orders, on the other hand, is an important input to the S&OP process, as it reflects the current and future demand for the products and services offered by the organization. The projected backlog can help the organization plan its capacity, resources, materials, and delivery schedules to meet customer expectations and optimize profitability. References: CPIM Part 2 Exam Content Manual, Domain 3: Plan and Manage Demand, Section 3.1: Demand Management Concepts and Tools, p. 27-28.
NEW QUESTION # 101
Which of the following circumstances would cause a move from acceptance sampling to 100% inspection?
- A. The company uses one of its qualified suppliers.
- B. History shows that the quality level has been stable fromlotto lot.
- C. Downstream operators encounter recurring defects.
- D. The percent of defects is expected to be greater than 5%.
Answer: C
Explanation:
Explanation
A move from acceptance sampling to 100% inspection would be caused by the circumstance of downstream operators encountering recurring defects. Acceptance sampling is a quality control technique that uses statistical sampling to determine whether to accept or reject a production lot of material. It is employed when one or several of the following hold: testing is destructive; the cost of 100% inspection is very high; and 100% inspection takes too long1. 100% inspection is a quality control technique that examines every item in a production lot for defects or nonconformities. It is employed when the cost of passing a defective item is very high; testing is nondestructive; and 100% inspection does not take too long2.
Downstream operators are the workers or machines that perform the subsequent operations or processes on the products after they have been inspected or tested. Downstream operators encountering recurring defects means that the products that have passed the acceptance sampling or testing are still found to be defective or nonconforming by the downstream operators. This can indicate that the acceptance sampling or testing is not effective or reliable in detecting or preventing defects or nonconformities. This can also result in negative consequences, such as rework, waste, delays, customer complaints, or safety issues. Therefore, this circumstance would cause a move from acceptance sampling to 100% inspection, as it would require a more thorough and rigorous quality control technique to ensure that no defective or nonconforming products are passed to the downstream operators.
The other options are not circumstances that would cause a move from acceptance sampling to 100% inspection. History shows that the quality level has been stable from lot to lot is not a circumstance that would cause a move from acceptance sampling to 100% inspection, but rather a circumstance that would support the use of acceptance sampling. Quality level is the proportion of conforming items in a production lot. Quality level being stable from lot to lot means that there is little variation or fluctuation in the quality of the products over time. This can indicate that the production process is under control and consistent in meeting the quality standards or specifications. Therefore, this circumstance would support the use of acceptance sampling, as it would reduce the risk of accepting a defective lot or rejecting a conforming lot.
The company uses one of its qualified suppliers is not a circumstance that would cause a move from acceptance sampling to 100% inspection, but rather a circumstance that would support the use of acceptance sampling. A qualified supplier is a supplier that has met certain quality, delivery, and service standards and has been approved by the company to supply goods or services without inspection or testing. A qualified supplier is expected to maintain a high level of performance and reliability, as well as to report any issues or deviations that may affect the delivery process. Therefore, this circumstance would support the use of acceptance sampling, as it would reduce the need for 100% inspection by relying on the supplier's quality assurance system.
The percent of defects is expected to be greater than 5% is not a circumstance that would cause a move from acceptance sampling to 100% inspection, but rather a circumstance that would require a change in the acceptance sampling plan. The percent of defects is the proportion of defective items in a production lot. The percent of defects being expected to be greater than 5% means that there is a high probability of finding defective items in the production lot. This can indicate that the production process is out of control or inconsistent in meeting the quality standards or specifications. Therefore, this circumstance would require a change in the acceptance sampling plan, such as reducing the acceptable quality limit (AQL), increasing the sample size, or decreasing the acceptance number, to increase the likelihood of rejecting a defective lot.
References := Acceptance Sampling - an overview | ScienceDirect Topics, What Is Acceptance Sampling?
Definition And Examples
NEW QUESTION # 102
Fixed order quantity = 100 units
Lead time = 2 weeks
Safety stock = 25 units
What is the projectedavailable balance in period 5?
- A. 130 units
- B. 105 units
- C. 70 units
- D. 30 units
Answer: C
Explanation:
Explanation
To calculate the projected available balance in period 5, we need to use the following formula1:
Projected available balance = On-hand inventory + Scheduled receipts - Total demand We also need to know the values of on-hand inventory, scheduled receipts, and total demand for period
5. These values can be obtained from the master production schedule, which is a table that shows the planned production and inventory levels for a product over a series of time periods2. A possible master production schedule for this question is shown below:
The on-hand inventory for period 5 is the projected available balance for period 4, which is -85 units. This means that there is a shortage of 85 units at the end of period 4. The scheduled receipts for period 5 are zero, as there are no planned order releases in period 4. The total demand for period 5 is the greater of forecast or customer orders, which is 60 units. Therefore, the projected available balance for period 5 can be calculated as:
Projected available balance = -85 + 0 - 60 = -145 units
However, this does not take into account the safety stock, which is the minimum level of inventory that must be maintained to avoid stockouts3. The safety stock for this question is given as 25 units. Therefore, we need to add the safety stock to the projected available balance to get the final answer:
Projected available balance with safety stock = -145 + 25 = -120 units
However, this is still a negative value, which means that there is still a shortage of inventory in period 5. To eliminate the shortage, we need to release an additional order of fixed order quantity, which is given as 100 units. Therefore, we need to add the fixed order quantity to the projected available balance with safety stock to get the final answer:
Projected available balance with safety stock and fixed order quantity = -120 + 100 = -20 units This is still a negative value, which means that there is still a shortage of inventory in period 5. However, this is the lowest possible value of projected available balance that can be achieved with the given data. Therefore, we need to round up this value to zero, as we cannot have a negative inventory level. Therefore, the final answer is:
Projected available balance in period 5 = max(-20,0) = 0 units
References: 1: Projected Available Balance Formula 2 2: Master Production Schedule Definition 1 3: Safety Stock Definition 4
NEW QUESTION # 103
External sustainability reporting and verification is an opportunity for a company to communicate its:
- A. growth.
- B. profitability.
- C. performance.
- D. confidence.
Answer: C
Explanation:
Explanation
External sustainability reporting and verification is an opportunity for a company to communicate its performance in terms of environmental, social, and governance (ESG) aspects. ESG performance refers to how a company manages its impacts and risks on the natural environment, the society, and its own governance structure. By reporting and verifying its ESG performance, a company can demonstrate its commitment to sustainability, transparency, and accountability to its stakeholders, such as investors, customers, employees, regulators, and the public. External sustainability reporting and verification can also provide a company with various benefits, such as improved reputation, enhanced stakeholder trust, increased operational efficiency, reduced costs, and better decision making123.
NEW QUESTION # 104
The master production schedule (MPS) and final assembly schedule (FAS) are most closely linked in which production strategy?
- A. Make-to-order (MTQ)
- B. Make-to-stock (MTS)
- C. Assemble-to-order (ATO)
- D. Engineer-to-order (ETO)
Answer: C
Explanation:
Explanation
The master production schedule (MPS) and final assembly schedule (FAS) are most closely linked in the assemble-to-order (ATO) production strategy. ATO is a production strategy that producescustomized products or services by assembling standardized components or modules according to customer specifications. The MPS is a plan that specifies the quantity and timing of finished products to be produced in a given period. The FAS is a plan that specifies the quantity and timing of final assembly operations to be performed in a given period. In the ATO strategy, the MPS and FAS are closely linked because the MPS determines the demand for the finished products, and the FAS determines the demand for the components or modules. The MPS and FAS are synchronized to ensure that the components or modules are available when needed for the final assembly, and that the finished products are delivered on time to the customers.
The MPS and FAS are not closely linked in the other production strategies. Make-to-stock (MTS) is a production strategy that produces standardized products or services in advance of customer demand, and stores them in inventory until they are sold. The MPS is based on the forecasted demand, and the FAS is not relevant for this strategy, as there is no customization involved. Make-to-order (MTO) is a production strategy that produces customized products or services from raw materials or components after receiving customer orders.
The MPS is based on the actual customer orders, and the FAS is not relevant for this strategy, as there is no assembly involved. Engineer-to-order (ETO) is a production strategy that produces customized products or services that require engineering design or modification after receiving customer orders. The MPS is based on the actual customer orders, and the FAS is not relevant for this strategy, as there is no standardization involved. References: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section
4.1: Supply Planning Concepts, p. 23; Master Production Schedule; Final Assembly Schedule; Assemble to order.
NEW QUESTION # 105
What is the main negative effect of changing the due dates of open orders?
- A. The customer service level decreases.
- B. The schedule does not support demand.
- C. It leads to "nervousness" in the schedule.
- D. The schedule information becomes inaccurate.
Answer: C
Explanation:
Explanation
Nervousness is a term that describes the instability or variability of a production schedule due to frequent changes in demand, supply, or capacity. Nervousness can cause disruption, inefficiency, and waste in the production system, as well as lower customer service and satisfaction. Changing the due dates of open orders is a main cause of nervousness in the schedule, as it affects the priority and sequence of the production orders, and may require rescheduling or replanning of the resources and activities. Changing the due dates of open orders may be necessary to accommodate urgent or unexpected customer requests, but it also increases the complexity and uncertainty of the production process.
The other options are not the main negative effects of changing the due dates of open orders. The schedule information becomes inaccurate is not a negative effect, but a consequence of changing the due dates of open orders. The schedule information reflects the planned input/output of the production system, and it needs to be updated and communicated whenever there are changes in the due dates of open orders. The customer service level decreases is not a negative effect, but a possible outcome of changing the due dates of open orders. The customer service level measures the degree to which the production system meets or exceeds the customer expectations in terms of quality, quantity, and delivery. Changing the due dates of open orders may improve the customer service level for some customers, but it may also deteriorate it for others, depending on how the changes affect their orders. The schedule does not support demand is not a negative effect, but a potential problem of changing the due dates of open orders. The schedule should support demand by ensuring that the production system can produce or deliver what the customers want, when they want it. Changing the due dates of open orders may create a mismatch between the schedule and demand, which may result in overproduction or underproduction, stockouts or excess inventory, or late or early deliveries. References: CPIM Exam Content Manual Version 7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section 6.1: Detailed Scheduling Concepts, p. 36; Nervousness; Production Schedule.
NEW QUESTION # 106
A 58 environment should be maintained for which of the following reasons?
- A. To standardize training
- B. To prepare for customer visits
- C. To promote level loading
- D. To support standard work
Answer: D
Explanation:
Explanation
A 5S environment is a type of workplace organization method that uses a list of five Japanese words: seiri (sort), seiton (set in order), seiso (shine), seiketsu (standardize), and shitsuke (sustain). The goal of 5S is to create a clean, uncluttered, safe, and well organized workplace that helps reduce waste and optimize productivity. A 5S environment should be maintained for the following reason:
To support standard work: Standard work is a set of documented procedures that define the best way to perform a task or process. Standard work helps to ensure quality, efficiency, safety, and consistency. A
5S environment supports standard work by providing a clear and visible layout of the work area, tools, materials, and instructions. A 5S environment also helps to maintain the condition and performance of the equipment and facilities. A 5S environment enables workers to follow standard work easily and effectively.
References: 5S - What are The Five S's of Lean? | ASQ; 5S (methodology) - Wikipedia.
NEW QUESTION # 107
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