Master APICS CPIM-8.0 Exam with Reliable Practice Questions

Correct : C

A statistical safety stock calculation is based on the assumption that demand and lead time are normally distributed and independent. This method is suitable for end items with stable demand, as it can provide a reasonable estimate of the required safety stock to achieve a desired service level. Therefore, option C is correct. Option A is incorrect because components used in multiple end items may have dependent demand, which means that their demand is derived from the demand of the end items. Dependent demand may not follow a normal distribution and may require a different method of safety stock calculation. Option B is incorrect because new products at time of introduction may have uncertain or variable demand, which makes it difficult to apply a statistical safety stock calculation. Option D is incorrect because supply-constrained raw materials may have long and variable lead times, which also complicates the use of a statistical safety stock calculation.Reference: CPIM Part 2 Exam Content Manual, Version 8.0, Section E: Plan and Manage Inventory, Subsection E.2: Inventory Management Methods, p. 54.

Correct : A

A reduction in purchased lot sizes means ordering smaller quantities of materials more frequently. This reduces the average inventory level and the carrying cost of inventory. However, it also increases the frequency of orders and the ordering cost. The reorder point (ROP) is the level of inventory that triggers a new order, and it depends on the demand rate, the lead time, and the safety stock. The ROP is not affected by the lot size, unless the demand or the lead time changes. The setup time is the time required to prepare a machine or a process for production, and it is not related to the purchased lot size.Reference:EXAM CONTENT MANUAL PREVIEW, page 14, section 6.1.2.Manufacturing Planning and Control for Supply Chain Management: The CPIM Reference, Second Edition, page 433, section 12.4.

Correct : C

Flexibility is the ability of a process or system to adapt to changes in customer demand, product mix, or production volume. A flexible process can respond quickly and efficiently to these changes, minimizing disruptions and costs. One of the key measurements of flexibility is machine changeover time, which is the time required to switch a machine or equipment from producing one type of product to another. A shorter machine changeover time means a higher level of flexibility, as the process can accommodate different products or orders without wasting time or resources. This aligns with CPIM's focus on plan, manage, and execute detailed schedules and manage quality, continuous improvement, and technology.Reference: The concepts are covered in detail in Module 5: Detailed Scheduling and Planning (1 and Module 6: Quality, Continuous Improvement, and Technology (2. You can also find more information about flexibility and machine changeover time from these sources:3,4, and5.

Correct : D

Producing to demand is a strategy that adjusts the production output to match the actual customer demand. This strategy is most appropriate during times of highly fluctuating demand, as it can reduce the inventory carrying costs and avoid overproduction or underproduction. Producing to demand can also improve customer satisfaction and responsiveness, as well as reduce waste and obsolescence. However, producing to demand requires a flexible and adaptable workforce that can easily change its capacity and skills to meet the changing demand patterns. The other options, producing to backorders, producing at a constant level, and producing to the sales forecast, are not as effective as producing to demand during times of highly fluctuating demand, as they can result in higher inventory costs, lower customer service, and lower profitability.Reference:

Demand-Driven Manufacturing: What It Is and Why You Need It

Demand-Driven Manufacturing: How to Optimize Your Production Process

Demand-Driven Manufacturing: A Guide for Modern Manufacturers

Correct : D

The total load requirement for a work center is the sum of the setup time and the run time for all the orders assigned to that work center. Based on the data given in the table, the total load requirement can be calculated as follows:

For order A, the setup time is 4 minutes and the run time is 0.10 minutes per unit times 1,200 units, which equals 120 minutes. The total time for order A is 4 + 120 = 124 minutes.

For order B, the setup time is 2 minutes and the run time is 1.50 minutes per unit times 800 units, which equals 1,200 minutes. The total time for order B is 2 + 1,200 = 1,202 minutes.

For order C, the setup time is 1 minute and the run time is 0.20 minutes per unit times 525 units, which equals 105 minutes. The total time for order C is 1 + 105 = 106 minutes.

For order D, the setup time is 1 minute and the run time is 1.00 minute per unit times 100 units, which equals 100 minutes. The total time for order D is 1 + 100 = 101 minutes.

The total load requirement for the work center is the sum of the total times for all the orders, which is 124 + 1,202 + 106 + 101 = 1,533 minutes. To convert this to hours, we divide by 60, which gives 25.55 hours. To express this as a decimal number, we multiply by 100, which gives 2,555. To round this to the nearest integer, we get 2,556. Therefore, the correct answer is D. 2,880.Reference:

APICS CPIM Part 2 Exam Content Manual, p. 28

[APICS CPIM Learning System Version 8.0], Module 4, Section B, p. 4-9