One way to mitigate liability risk in the supply chain is to:

require traceability for components.

negotiate lower component cost.

require traceability for components.

push inventory to supplier locations.

use less-than-truckload (LTL) shipments more frequently.

Fishbone diagrams would help a service organization determine:

the source of a quality-of-service issue.

the proper level of service for a customer segment.

the source of a quality-of-service issue.

differences in the performance of employees.

the decomposition of customer return rates with seasonality.

Which of the following actions hinders the transition from a push system to a pull system?

Introducing kanban cards as authorization for material movement

Maintaining a constant number of kanban cards during minor changes in the level of production

For a company that uses first in, first out (FIFO) inventory accounting, the actual use in production of a recently arrived shipment of more expensive components rather than lower-cost components previously received will have which of the following results?

Higher cost of goods sold (COGS)

Under which of the following conditions is excess capacity most likely a good substitute for safety stock?

The cost of excess capacity is less than the cost of an additional unit of safety stock in the same period.

The cost to maintain one unit in inventory for a year is less than the direct labor cost.

The service level with safety stock is more than the service level with excess capacity.

Lead time for the product is longer than customers are willing to wait.

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

increase in direct (linear) proportion.

increase at an increasing rate.

A low-cost provider strategy works best when which of the following conditions are met?

Buyers are more price sensitive.

Price competition among rivals is similar.

Buyers are more price sensitive.

There are many ways to achieve product differentiation.

There are few industry newcomers.

An advantage of applying ABC classification to a firm's replenishment items is that:

it allows planners to focus on critical products.

it distinguishes independent demand from dependent demand.

it allows planners to focus on critical products.

it provides better order quantities than the economic order quantity (EOQ).

it allows the firm to utilize time-phased order point (TPOP).

Which of the following situations is most likely to occur when using a push system?

Work centers receive work even if capacity is not available.

Work centers are scheduled using finite capacity planning.

Work centers operate using decentralized control.

Work centers signal previous work centers when they are ready for more work.

When starting an external benchmarking study, a firm must first:

understand its own processes and document performance.

determine the metrics which will be measured and compared.

identify the target firms with which to benchmark against.

understand its own processes and document performance.

determine its areas of weakness versus the competition's.

A disadvantage of a capacity-lagging strategy may be:

lack of capacity to fully meet demand.

risk of excess capacity if demand does not reach forecast.

planned capital investments occur earlier than needed.

Which of the following statements is an assumption on which the economic order quantity (EOQ) model is based?

Order preparation costs and inventory-carrying costs are constant and known.

Customer demand is known but seasonal.

Items are purchased and/or produced continuously and not in batches.

Order preparation costs and inventory-carrying costs are constant and known.

Holding costs, as a percentage of the unit cost, are variable.

Information regarding a major new customer is received from sales. The company's most appropriate initial response would be to adjust the:

master production schedule (MPS).

Which of the following statements is true about total productive maintenance (TPM)?

It minimizes unscheduled breakdowns.

It is part of the business strategy.

It influences the product design process.

It minimizes unscheduled breakdowns.

Risk pooling would work best for items with:

high demand uncertainty and long lead times.

low demand uncertainty and short lead times.

low demand uncertainty and long lead times.

high demand uncertainty and short lead times.

high demand uncertainty and long lead times.

During the sales and operations planning (S&OP) process, which of the following tasks is the primary responsibility of the functional representatives on the supply planning team?

Ensuring that the functional objectives are considered when developing the plans

Identifying reasons why the demand plan is not realistic

Communicating when an event will prevent meeting the supply plan

Ensuring that the functional objectives are considered when developing the plans

Understanding how to use the plan to improve functional performance

An example of a cradle-to-cradle sustainability model would be:

a coffee shop collects paper waste in its restaurants, has a selected supplier collect the paper waste to be recycled, and then purchases paper products from that supplier.

a laundry service collects dirty baby clothes from families; cleans the clothes in large, efficient batches; and then sorts and delivers the clothes back to each family.

a coffee shop collects paper waste in its restaurants, has a selected supplier collect the paper waste to be recycled, and then purchases paper products from that supplier.

a company uses wood that has been gathered from multiple sources to construct items, such as beds and toys for babies and young children.

a bank offers the lowest interest rates on loans to firms that are committed to using recycled materials and implementing zero-waste initiatives in their processes.

What priority control technique is most appropriate for a firm using a cellular production system?

Pull production activity control (PAC)

Shortest processing time (SPT) rule

Distribution requirements planning (DRP)

Pull production activity control (PAC)

Push production activity control (PAC)

Which of the following circumstances would cause a move from acceptance sampling to 100% inspection?

Downstream operators encounter recurring defects.

History shows that the quality level has been stable from lot to lot.

The company uses one of its qualified suppliers.

Downstream operators encounter recurring defects.

The percent of defects is expected to be greater than 5%.

In pyramid forecasting, the 'roll up' process begins with:

combining individual product item forecasts into forecasts for product families.

combining forecasts for product families into a total business forecast.

allocating total business forecast changes to product families.

allocating product family forecast changes to individual products.

Exhibit: A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

Customer B has higher service level

100% service levels for B and C

Customer B has higher service level

Customer C has higher service level

Customer B and C have same service level

Which of the following statements correctly describes the relationship between the strategic plan and the business plan?

The strategic plan constrains the business plan.

These are two names for the same plan.

The strategic plan constrains the business plan.

The two plans are developed independently.

The two plans are the output of a single process.

Which of the following conditions is most likely to result in planned production that is greater than the total demand over the sales and operations planning (S&OP) horizon for a product family that is made to stock?

An increase in the customer service level is planned for the product family.

New models are being added to the product family.

Planned ending inventory for the product family is less than the beginning inventory.

There is a long-term upward trend in demand for the product family.

A house of quality (HOQ) chart aligns which pair of functions?

Competitive analysis with product design

Customer requirements with costing

Customer purchasing with supplier shipping

Competitive analysis with product design

APICS CPIM-8.0 Practice Test 1 - Free Online Exam Prep & Questions

Question 1 / 40

Based on the values reported in the table below, what is the inventory turnover?

APICS CPIM-8.0 image Question 1 63875516178458794366378

0.50

0.58

1.73

2.60

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