Which of the following benefits typically will be realized when switching from a functional to a cellular layout?

Products will have faster throughput.

Equipment utilization will be higher.

Quality inspections will be reduced.

Capital expenditures will be reduced.

Products will have faster throughput.

The production plan relates to a firm's financial planning because it is used to:

calculate standard product costs.

The most relevant measure of customer service performance Is:

service perceived by the customer against service expected by the customer.

service promised to the customer against service measured by the supplier.

customer complaints received as a percentage of orders shipped.

positive customer feedback as a percentage of customer feedback.

Which of the following items does the master scheduler have the authority to change in the master scheduling process?

Engineering change effectivity date

One advantage of adopting a supply network perspective Is that it:

enhances understanding of competitive and cooperative forces.

defines the market relationships and partnerships.

encourages rivals to collaborate.

In Company XYZ, transaction-costing capability has been Integrated into the shop floor reporting system. A batch of 20 units was started in production. At the fourth operation, 20 units are reported as complete. At the fifth operation, 25 units are reported as complete. When all operations are complete, 20 units are checked into the stockroom. If the error at the fifth operation is undetected, which of the following conditions will be true?

Work-in-process (WIP) cost will be understated.

Stockroom inventory balance will be incorrect.

Operator efficiency for the fifth operation will be overstated.

Units in process will be understated.

Work-in-process (WIP) cost will be understated.

The primary outcome of frequent replenishments in a distribution requirements planning (DRP) system is that:

the level of required safety stock is reduced.

lead times to customers decrease.

the level of required safety stock is reduced.

more efficient load consolidation occurs.

Improvements in an Input/output control (I/O control) system will most likely lead to:

reduction in queue size and queue time.

flattened bills of material (BOMs).

a change in operation sequencing.

reduction in queue size and queue time.

fewer engineering change notifications.

A newer automotive supplier has not fully developed its information technology (IT) systems. The supplier has Just received a contract from a large automotive manufacturer which requires the supplier to use electronic data interchange (EDI) transactions for receiving orders, sending advance ship notices (ASNs), and receiving invoice payments. What strategy can the supplier adopt to immediately meet the EDI requirements?

Use current third-party logistics provider (3PL) to handle the EDI transactions.

Select, install, and implement EDI software.

Use current third-party logistics provider (3PL) to handle the EDI transactions.

Claim hardship and ask the automotive manufacturer for a waiver.

Negotiate using email as an alternative with the customer.

Management should support investments in new process technologies that:

provide long-term competitive advantage with acceptable financial risk.

require minimal changes in existing systems, procedures, and skills.

have been recommended by technical experts and equipment suppliers.

provide significant cost-reduction opportunities for the company's current products.

provide long-term competitive advantage with acceptable financial risk.

Which of the following statements best characterizes enterprise resources planning (ERP) systems?

They provide real-time planning and scheduling, decision support, available-to-promise (ATP), and capable-to-promise (CTP) capabilities.

They track activity from customer order through payment.

They are expensive but easy to implement.

They provide real-time planning and scheduling, decision support, available-to-promise (ATP), and capable-to-promise (CTP) capabilities.

They are used for strategic reporting requirements.

Which of the following production activity control (PAC) techniques focuses on optimizing output?

Theory of constraints (TOC) scheduling

An example of a flexibility metric for an organization Is:

percentage of orders delivered late.

Forecast error typically triggers forecast revision when it is:

used in computing the tracking signal.

associated with the Introduction stage of the product life cycle.

Which of the following activities is an example of collaboration between suppliers and operations which would give more lead time visibility?

Sharing of demand data with a supplier

Conducting a facility tour for a supplier

Sharing of demand data with a supplier

Sending the supplier an annual forecast for materials

Conducting a qualification meeting with the supplier of a new material

In which of the following situations would you use an X-bar chart?

Determine the average value of a group of units.

Track the number of defects that are found in each unit.

Measure the difference between the largest and the smallest in a sample.

Determine the average value of a group of units.

Which of the following product design approaches are likely to reduce time to market for a global supply chain?

Quality function deployment (QFD)

Which of the following attributes describes a company with a global strategy?

It uses the same basic competitive style worldwide and focuses efforts on building global brands.

It customizes the basic competitive style to fit markets but focuses efforts on building global brands.

It coordinates major strategic decisions worldwide but gives country managers wide strategy-making latitude.

It operates plants in many host countries and uses decentralized distribution.

A company implementing a localized multi-country strategy to increase market share should engage in which of the following actions?

Sell different product versions in different countries under different brand names.

Sell the same products under the same brand name worldwide.

Locate plants on the basis of maximum location advantage.

Use the best suppliers regardless of geographic location.

The question below is based on the following standard and actual data of a production order Which of the following statements about variances is true?

The labor efficiency variance is favorable by S20

The material price vanance for Component A is favorable by S10

The labor pnce variance is unfavorable by S20

The material usage variance for Component B is favorable by $36

The labor efficiency variance is favorable by S20

An effective approach to projecting requirements for materials with long lead times Includes which of the following options?

Initiate a multilevel master schedule.

Use phantom bills of materials (BOMs).

Increase the level of safety stock.

A company assembles kits of hand tools after receipt of the order from distributors and uses two-level master scheduling. The appropriate levels of detail for the forecasts that are input to master scheduling would be total number of kits and:

percentage of total for each tool.

APICS CPIM-8.0 Practice Test 3 - Free Online Exam Prep & Questions

Question 1 / 40

Which of the following trade-offs should be evaluated when determining where to place inventory in a multi-echelon supply chain network?

Production cost and lot size quantity

Purchase cost and shrinkage rates

Transportation cost and delivery time

Customer price and order quantity

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