APICS CPIM-Part-2 Certified in Planning and Inventory Management (Part 2) Exam Practice Test

Answer : B

A bill of resources is a tool that is used to evaluate the impact that a production plan has on capacity.A bill of resources is a document that lists the required resources, such as machines, labor, materials, and space, for each product or service in the production plan1.A bill of resources can help estimate the total capacity requirements for the production plan, as well as the capacity utilization and availability for each resource2.A bill of resources can also help identify potential capacity gaps, bottlenecks, or excesses, and evaluate alternative production plans or resource allocations3.

A bill of resources can be created by using the following steps4:

Step 1: Identify the products or services in the production plan and their quantities and timings.

Step 2: Identify the resources needed for each product or service and their quantities and timings. This can be done by using tools such as product routings, process maps, or work breakdown structures.

Step 3: Aggregate the resource requirements for each product or service and for the entire production plan. This can be done by using tools such as spreadsheets, tables, or charts.

Step 4: Compare the resource requirements with the resource capacities and availability. This can be done by using tools such as capacity planning matrices, load profiles, or resource histograms.

Step 5: Analyze the results and make adjustments or recommendations. This can be done by using tools such as what-if analysis, simulation, or optimization.

Therefore, a bill of resources is a tool that is used to evaluate the impact that a production plan has on capacity.

Answer : C

A lean relationship is a type of supplier-customer relationship that focuses on eliminating waste, improving quality, and reducing costs throughout the supply chain. A lean relationship requires a high level of collaboration, trust, and transparency between the supplier and the customer. Communication between the counterparts at the two companies is an essential activity that will enhance a successful lean relationship. Communication can help to align the goals, expectations, and performance measures of the supplier and the customer, as well as to identify and resolve any issues or problems that may arise. Communication can also facilitate information sharing, feedback, and continuous improvement initiatives.Reference: CPIM Exam Content Manual Version 7.0, Domain 7: Plan and Manage Distribution, Section 7.1: Develop Distribution Plans, Subsection 7.1.3: Describe how to develop supplier-customer relationships (page 66).

Answer : B

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.

Answer : C

Return on investment (ROI) is a financial ratio that measures the profitability of an investment relative to its cost. ROI is calculated by dividing the net income (or profit) generated by the investment by the total cost of the investment. ROI is decreased by any activity that reduces the net income or increases the cost of the investment. Increasing cost of sales is an activity that decreases ROI because it reduces the net income generated by the sales revenue. Cost of sales (or cost of goods sold) is the direct cost of producing or purchasing the goods or services sold by an organization. Cost of sales includes materials, labor, and overhead costs. Increasing cost of sales means that the organization spends more money to produce or acquire the same amount of goods or services, which lowers its profit margin and ROI.

Answer : C

A life cycle assessment (LCA) would be used to determine environmental aspects and impacts. Environmental aspects are the elements or characteristics of a product or service that can interact with the environment, such as emissions, energy use, water use, waste generation, etc.Environmental impacts are the effects or consequences of the environmental aspects on the environment, such as climate change, acidification, eutrophication, human health, biodiversity, etc1

A life cycle assessment (LCA) is a systematic analysis of the potential environmental impacts of products or services during their entire life cycle.During an LCA, you evaluate the potential environmental impacts throughout the entire life cycle of a product (production, distribution, use and disposal) by considering all the relevant environmental aspects and their interactions with the environment23

An LCA can help you:

Identify the most significant environmental aspects and impacts of your product or service

Compare the environmental performance of different products or services

Find opportunities to reduce the environmental impacts and improve the environmental performance of your product or service

Communicate the environmental benefits of your product or service to your customers, stakeholders, and regulators

Therefore, an LCA would be used to determine environmental aspects and impacts.

Answer : D

Long lead-time items are items that take a long time to procure, produce, or deliver. Stable demand means that the demand for these items is predictable and does not fluctuate much over time. A supply chain that supports long lead-time items with stable demand would best be designed to position inventory close to the consumer, because this would reduce the delivery time and improve the customer service level. Positioning inventory close to the consumer also reduces the transportation costs and risks associated with long-distance shipments. A supply chain that uses a pull system, which is based on actual customer orders rather than forecasts, may not be suitable for long lead-time items, because it may not be able to meet the customer demand in a timely manner. A supply chain that is linked through an enterprise resources planning (ERP) system, which is a software system that integrates various business functions and processes, may improve the visibility and coordination of the supply chain, but it does not necessarily reduce the lead time or position inventory close to the consumer. A supply chain that is designed to be responsive, which means that it can quickly adapt to changes in demand or other variables, may not be necessary for long lead-time items with stable demand, because these items have low demand uncertainty and variability.Reference:

Inventory Positioning | Supply Chain Resource Cooperative

Push System vs. Pull System: Adopting A Hybrid Approach To MRP

What Is Inventory Positioning in Supply Chain Management?

Answer : B

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.