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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 63 - CPIM-Part-2 discussion

Report

Substituting capital equipment in place of direct labor can be economically justified for which of the following scenarios?

A.

Volumes are forecasted to increase

B.

Material prices are forecasted to increase

C.

Implementing a pull system in production

D.

Functional layouts are being utilized

Suggested answer: A

Explanation:

Substituting capital equipment in place of direct labor can be economically justified for the scenario where volumes are forecasted to increase. This is because capital equipment can provide higher productivity, efficiency, and quality than direct labor, especially when the demand for the product or service is high or growing.Capital equipment can also reduce the labor costs, such as wages, benefits, training, and turnover, that are associated with direct labor12. Therefore, investing in capital equipment can lower the unit cost and increase the profit margin of the product or service, as well as improve the customer satisfaction and loyalty.

The other scenarios are not likely to justify substituting capital equipment in place of direct labor, because they are either irrelevant or ineffective. Material prices are forecasted to increase (B) is a factor that affects the cost of inputs, not outputs. Substituting capital equipment in place of direct labor may not reduce the material costs, unless the capital equipment can use less or cheaper materials than direct labor. Implementing a pull system in production is a method of managing inventory and production based on actual customer demand, rather than forecasts. Substituting capital equipment in place of direct labor may not facilitate the implementation of a pull system, unless the capital equipment can provide more flexibility and responsiveness than direct labor. Functional layouts are being utilized (D) is a way of arranging the production facilities according to the type of operation or function performed. Substituting capital equipment in place of direct labor may not improve the performance or efficiency of a functional layout, unless the capital equipment can reduce the setup time or transportation cost between different functions.

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asked 16/09/2024

Tracy Nicholas

33 questions

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Your answer: A B C D

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