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Question 1

(0)

Work Center 1 has an available capacity of 1,200 hours per month. Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Mont

Question 2

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A customer requests an order of 100 units in Period 1. The master schedule for the item indicates an available-to-promise (ATP) of 85 units for Period 1. Which of the following approaches is the mo

Question 3

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Which of the following factors typically would distort a sales forecast that is based solely on shipment history?

Question 4

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A vendor-managed inventory (\VMI) program provides a benefit to the buying company in which of the following ways?

Question 5

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What is the purpose of a buffer in the theory of constraints (TOC)?

Question 6

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Which of the following tools is used for monitoring a capacity plan?

Question 7

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The primary consideration in maintenance, repair, and operating (MRO) supply systems typically is:

Question 8

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A factory work center has the following work orders. What is the load on this work center?

Question 9

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The horizon for forecasts that are input to the sales and operations planning (S&O0P) process should be long enough that:

Question 10

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Rivalry among competing sellers is generally weaker when:

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Related questions

In an assemble-to-order (ATO) environment, option overplanning is used to:

Providing a realistic basis for setting internal performance targets can be accomplished through:

When designing a production cell, which of the following items would be the most important consideration?

In which of the following environments is capable-to-promise (CTP) more appropriate than available-to-promise (ATP)?

Fixed order quantity = 100 units Lead time = 2 weeks Safety stock = 25 units What is the projected available balance in period 5?

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

Product X sells for $20 each, and it has a variable cost of $5 per unit. The company sells 10,000 units per year and has a fixed cost of $120,000. What is the break-even point in units for Product X?

In the sales and operations planning (S&0P) process in a repetitive manufacturing environment, the resulting operations plan for a product family could be stated in terms of which of the following outputs?

Sales and operations planning (S&0P) in a make-to-stock (MTS) environment is concerned with projecting:

Collaborative planning, forecasting, and replenishment (CPFR) typically would be most effective for a:

Question 59 - CPIM-Part-2 discussion

Report

Potential reasons to make instead of buy a product may include:

A.

maintain core competencies, increase capital expense, and reduce cost.

B.

less capital investment, large volume changes, and reduce cost.

C.

maintain quality, reduce cost, and keep confidential processes within the firm.

D.

eliminate risks associated with single sourcing, create intermittent flow, and reduce cost.

Suggested answer: C

Explanation:

According to the CPIM Exam Content Manual, a make-or-buy decision is a strategic decision that involves choosing between manufacturing a product or service internally or purchasing it from an external supplier1.A make-or-buy decision is based on a cost-benefit analysis that considers various factors, such as quality, cost, capacity, lead time, technology, and competitive advantage2.

Some of the potential reasons to make instead of buy a product may include:

Maintain quality: Making a product internally may allow the firm to control and ensure the quality standards of the product, which may affect customer satisfaction and loyalty.Buying a product from an external supplier may involve quality risks or uncertainties, especially if the supplier is located in a different country or has different quality systems3.

Reduce cost: Making a product internally may reduce the total cost of ownership of the product, which includes not only the purchase price, but also the costs of transportation, inventory, inspection, warranty, and maintenance. Buying a product from an external supplier may incur higher total costs due to these factors.

Keep confidential processes within the firm: Making a product internally may protect the firm's proprietary or confidential processes that give it a competitive edge in the market. Buying a product from an external supplier may expose the firm's processes to potential imitation or leakage.

Therefore, the correct answer is C. maintain quality, reduce cost, and keep confidential processes within the firm.

CPIM Exam Content Manual

Make-or-Buy Decision Explained: How to Make Outsourcing Decisions

Make or Buy Decision - What Is It, Examples, Factors, Advantages

Make-or-Buy Decision - Overview, How It Works, Triggers

Make or Buy Decision - Definition & Examples | Marketing Tutor

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asked 16/09/2024

AJ Foraker

36 questions

User

Your answer: A B C D

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