In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:

earlier Identification of shifts In customer preferences.

How would a master production schedule (MPS) be used In an assemble-to-order (ATO) manufacturing environment?

The MPS is used to plan subassemblies and components; end items are only scheduled when a customer order is received.

Subassemblies are scheduled in the MPS when the customer order is received, and production can start.

Typically, the MPS is not used in companies using an ATO manufacturing strategy.

Often In an ATO environment, the MPS is created once a year and only revised if a product is discontinued.

A plant uses a level production strategy due to the high costs of hiring and letting go of skilled employees. The constrained resource is due to be upgraded in the fourth month of the planning horizon, and that will reduce capacity for that month by 17%.Which of the following actions would be appropriate in this situation to maintain current levels of customer service and gross margin?

Increase planned production for the next three periods.

Defer the upgrade to a period beyond the planning time fence.

Increase planned production from the fifth period on.

Defer the upgrade to the period in which the highest stock level is planned.

An example of an assignable cause of variation in process performance is:

incorrect setup of a machine by the operator.

power fluctuation during machine operation.

machine vibration during operation.

incorrect setup of a machine by the operator.

changes in temperature in the machine shop.

The horizon for forecasts that are input to the sales and operations planning (S&OP) process should be long enough that:

required resources can be properly planned.

cumulative forecast deviation approaches zero.

planned product launches can be incorporated.

required resources can be properly planned.

supply constraints can be resolved.

A firm that currently produces all items to stock is implementing the concept of postponement in all new product designs. Which of the following outcomes is most likely to result?

Number of finished items stocked will decrease.

Sales volume per product family will increase.

Number of finished items stocked will decrease.

Number of component items stocked will increase.

Which of the following actions best supports a company's strategic focus on delivery speed to improve competitive advantage?

Maintaining high-capacity utilization

Implementing rapid process improvements

Which of the following capacity planning methods uses the master production schedule (MPS) as its primary input?

Rough-cut capacity planning (RCCP)

When the discrete available-to-promise (ATP) method is used, the master production receipt quantity is committed to:

requests only for shipment before the next master production schedule (MPS) receipt.

any request for shipment prior to the planning time fence.

any request for shipment prior to the demand time fence (DTF).

requests only for shipment before the next master production schedule (MPS) receipt.

requests only for shipment in the period of the receipt.

A company that uses concurrent engineering is likely to experience which of the following outcomes in the first period of a product's life cycle?

An increase in obsolete inventory

Conflicts between purchasing and engineering

The primary purpose for engaging in cycle count activities is to:

more frequently reconcile the actual on-hand and system on-hand for items.

eliminate the need for a traditional physical inventory count.

more frequently reconcile the actual on-hand and system on-hand for items.

smooth out the tasks of counting inventory throughout the fiscal year.

improve material handling processes and reduce or eliminate errors.

We have observed the inventory system does not handle plastic parts well.' What should be added to the problem statement to make it more useful?

Measurements that help describe the problem

Guidance to which problem-solving tools should be used

Criteria for selecting the improvement team

Description of who is responsible for the problem

The planned channels of Inventory disbursement from one or more sources to field warehouses are known as:

logistics data interchange (LDI).

A manufacturer has a primary assembly line supported by output from several subassembly lines. Which of the following scenarios would be the best argument for a multilevel master scheduling process?

High variation in subassembly demand mix

Low variation in aggregate subassembly demand

High variation in aggregate subassembly demand

Low variation in subassembly demand mix

High variation in subassembly demand mix

Which of the following planning modules considers the shortest-range planning goals?

Capacity requirements planning (CRP)

Rough-cut capacity planning (RCCP)

A life cycle assessment (LCA) would be used to determine:

environmental aspects and impacts.

the length of a long-term agreement.

how an Item should be scheduled.

environmental aspects and impacts.

If risk pooling would reduce inventory investment.

Which of the following statements characterizes a pull system In distribution management?

Each warehouse makes its own replenishment decisions.

It uses distribution requirements planning (DRP).

It uses uniform performance measures.

A company selling seasonal products is preparing their sales and operations plan for the coming year. Their current labor staffing is at the maximum for their production facility and cannot meet the forecasted demand. The business plan shows they do not have the financial capability to add to the production facility. Which of the following actions would be most appropriate?

Use level production planning and investigate subcontracting to meet the extra demand.

Use chase production planning and only take the orders that can be produced In the high demand season.

Use hybrid production planning to save labor costs and inventory costs in the low demand season.

Use hybrid production planning and reduce the size of the customer base during the high demand season.

What activity is a useful element in the change process?

Developing key performance indicators (KPIs)

Which of the following actions will result In lower inventory levels?

Reduce replenishment lead times.

Level load the master production schedule (MPS).

Reduce replenishment lead times.

Increase customer service level.

Decentralize inventory locations.

Capacity requirements planning (CRP) is applicable primarily In companies operating In an environment where:

material requirements planning (MRP) is used.

the status of work orders is disregarded.

material requirements planning (MRP) is used.

Which of the following statements is true about the mean time between failures (MTBF) measure?

It is a useful measure of reliability.

It is used for non-repairable products.

An increase in MTBF is proportional to an increase in quality.

It is a useful measure of reliability.

It is the same as operating life or service life.

The master schedule is an Important tool in the sales and operations planning (S&OP) process because it:

balances supply and demand at the product mix level.

represents the forecast before changes are made in S&OP.

represents the forecast with less detail.

balances supply and demand at the product mix level.

balances supply and demand at the sales volume level.

Check sheets can be used to:

determine the frequency of a defect and the time period between occurrences.

provide a quick method to identify if possible defects exist.

allow improvement teams to see if action items are being completed on time.

provide an indication of correlation between defects.

The primary reason for tracing a component with scheduling problems to Its master production schedule (MPS) item is to:

determine if a customer order will be impacted.

revise the rough-cut capacity plan.

reschedule a related component on the shop floor.

check the accuracy of the bills for the MPS items.

determine if a customer order will be impacted.

APICS CPIM-8.0 Practice Test 2 - Free Online Exam Prep & Questions

Question 1 / 40

What is the main negative effect of changing the due dates of open orders?

The schedule information becomes inaccurate.

The customer service level decreases.

It leads to 'nervousness' in the schedule.

The schedule does not support demand.

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