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

Answer : C

Staging in a manual system corresponds to dispatching in a computer system.Staging is the process of preparing and moving materials or components to the point of use or consumption in a production system1.Staging can be done manually by workers who physically move the items from storage areas to workstations, or automatically by conveyors, robots, or other devices2.Dispatching is the process of authorizing and releasing work orders or tasks to the production system3.Dispatching can be done manually by supervisors who assign work to workers, or automatically by computer systems that use algorithms or rules to prioritize and schedule work4. Both staging and dispatching are functions that facilitate the flow of materials and information in a production system and ensure that the right items are available at the right time and place.

Answer : B

A quantitative model is a mathematical representation of a real-world situation that involves numbers, variables, equations, and logic. A quantitative model can be used to support sales and operations planning (S&OP), which is a process of aligning the demand and supply plans of an organization at an aggregate level. To develop a quantitative model for S&OP, the following statements are most true:

It isnotnecessary to capture all of the detail in order to create a useful model. In fact, too much detail can make the model complex, unrealistic, and difficult to solve.A useful model should capture the essential features of the situation and simplify the irrelevant or insignificant aspects1.

Aggregation will benecessaryto develop an appropriate model. Aggregation is the process of combining data or information into higher-level categories or groups. For example, products can be aggregated into product families, customers can be aggregated into market segments, and time periods can be aggregated into months or quarters.Aggregation can help reduce the size and complexity of the model, as well as improve its accuracy and reliability2.

Clear objectives arenecessaryto begin the modeling process. Objectives are the desired outcomes or goals that the model aims to achieve or optimize. For example, an objective of S&OP could be to maximize profit, minimize cost, or balance inventory.Clear objectives can help define the scope, structure, and criteria of the model3.

Asignificantlevel of effort is required to develop a model. Developing a model involves several steps, such as defining the problem, collecting and analyzing data, formulating and testing the model, implementing and validating the solution, and evaluating and improving the results.Each step requires careful planning, execution, and evaluation4.

Answer : C

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.

Answer : A

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.Reference: CPIM Part 2 Exam Content Manual, Domain 3: Plan and Manage Demand, Section 3.1: Demand Management Concepts and Tools, p. 27-28.

Answer : C

Visual control boards are tools that display the key performance indicators (KPIs) and metrics of a production system in a graphical and easy-to-understand format. Visual control boards are usually located at several locations within the production facility, such as the work centers, the shop floor, or the management office. Visual control boards help to communicate operational performance by providing real-time and relevant information, enabling quick feedback and corrective actions, and promoting transparency and accountability.

The other options are not the most effective approaches in communicating operational performance. Quality performance measures are indicators that evaluate the degree to which the products or services meet or exceed the specifications and standards. Quality performance measures are important for communicating operational performance, but they are not sufficient, as they do not cover other aspects of performance, such as cost, time, or customer satisfaction. Reviewing conformance to schedule is a method of comparing the actual production output with the planned production output, based on the master production schedule or the material requirements plan. Reviewing conformance to schedule is useful for communicating operational performance, but it is not timely, as it is usually done after the production is completed, and it does not provide enough details or explanations for the deviations or variances. Monthly meetings with employees are events that involve discussing and reviewing the operational performance with the staff members who are involved in the production process. Monthly meetings with employees are beneficial for communicating operational performance, but they are not frequent, as they are only held once a month, and they may not be effective, as they may lack participation or engagement from the employees.

Answer : D

The most appropriate production output reporting method for repetitive manufacturing is backflush.Repetitive manufacturing is a production system where the same or similar products are produced in large quantities or in a continuous flow1.Backflush is a method of reporting output and consumption of materials at the end of the production process, rather than at each operation or stage2. Backflush can simplify and streamline the production output reporting process, as it eliminates the need for tracking and recording each individual transaction or movement of materials and components.Backflush can also reduce the paperwork, errors, and costs associated with production output reporting2.

The other options are not as appropriate as backflush for repetitive manufacturing.Operation-by-operation is a method of reporting output and consumption of materials at each operation or stage of the production process3. This method can provide more detailed and accurate information about the production performance and costs, but it can also be more complex and time-consuming, as it requires tracking and recording each individual transaction or movement of materials and components.Count point is a method of reporting output and consumption of materials at selected points or milestones in the production process4. This method can provide a balance between detail and simplicity, but it can also introduce errors or discrepancies, as it requires estimating or extrapolating the output and consumption of materials between the count points.Job tickets are documents that record the time, materials, and costs associated with a specific job or order5. This method can provide more flexibility and customization, but it can also be more suitable for job shop or batch production systems, where different products are produced in small quantities or on demand.

Answer : C

The bullwhip effect is a supply chain phenomenon that causes fluctuations in demand to amplify as they move upstream, from the consumer to the retailer, to the distributor and then to the producer1.The bullwhip effect can result in inefficiencies and costs such as excess inventory, lost revenues, superfluous capacity and poor customer service1.

One of the activities that would be effective to mitigate the bullwhip effect is to reduce lead times, which are the time intervals between placing an order and receiving the goods2.Reducing lead times can help to reduce the uncertainty and variability in demand, as well as improve the responsiveness and flexibility of the supply chain2. By reducing lead times, the supply chain partners can order less frequently and in smaller quantities, while still meeting customer demand.This can reduce the need for safety stock, cycle stock and pipeline stock, and thus lower the inventory carrying costs and risks2.

The other options are not effective activities to mitigate the bullwhip effect.Implementing track and trace technology, which is a method for tracking the origin, history, location and status of a product or its parts throughout the supply chain3, may help to improve the visibility and transparency of the supply chain, but it may not reduce the demand fluctuations or inventory imbalances caused by the bullwhip effect.Using a push system, which is a production system where goods are produced based on forecasted demand rather than actual customer orders4, may increase the risk of overproduction or underproduction, as well as create more inventory and waste in the supply chain.Increasing inventory, which is the stock of goods or materials held by a company to meet customer demand5, may increase the inventory carrying costs and risks, as well as tie up cash flow and working capital.