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Question 1

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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 104 - CPIM-Part-2 discussion

Report

Reducing distribution network inventory days of supply will have which of the following impacts?

A.

Increase turnovers and increase cash-to-cash cycle time.

B.

Increase turnovers and reduce cash-to-cash cycle time.

C.

Decrease turnovers and reduce cash-to-cash cycle time.

D.

Decrease turnovers and increase cash-to-cash cycle time.

Suggested answer: B

Explanation:

Reducing distribution network inventory days of supply will have the impact of increasing turnovers and reducing cash-to-cash cycle time.Distribution network inventory days of supply is a measure of how long it takes for a company to sell its entire inventory in its distribution network, which includes the warehouses and transportation systems that deliver the products to the customers1.It is calculated by dividing the average inventory by the cost of sales per day1. A lower distribution network inventory days of supply indicates that the company is selling its inventory faster and more efficiently, while a higher distribution network inventory days of supply indicates that the company is holding too much inventory or having difficulty selling its products.

Turnovers, also known as inventory turnover or stock turnover, is a measure of how many times a company sells and replaces its inventory in a given period.It is calculated by dividing the cost of goods sold by the average inventory2. A higher turnover indicates that the company is selling its inventory quickly and efficiently, while a lower turnover indicates that the company is holding too much inventory or having difficulty selling its products.

Cash-to-cash cycle time, also known as cash conversion cycle or net operating cycle, is a measure of how long it takes for a company to convert its cash outflows into cash inflows.It is calculated by adding the days sales outstanding (DSO), which is the average time it takes for customers to pay for their purchases, and the distribution network inventory days of supply, and subtracting the days payable outstanding (DPO), which is the average time it takes for the company to pay its suppliers3. A shorter cash-to-cash cycle time indicates that the company is managing its cash flow more effectively, while a longer cash-to-cash cycle time indicates that the company is tying up more cash in its operations.

Therefore, reducing distribution network inventory days of supply will have the impact of increasing turnovers and reducing cash-to-cash cycle time, as it will decrease the average inventory level, increase the cost of sales per day, and decrease the distribution network inventory days of supply component in the cash-to-cash cycle time formula. This will improve the efficiency and profitability of the company's operations and reduce its working capital needs.

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asked 16/09/2024

Tiziano Riezzo

47 questions

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Your answer: A B C D

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