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APICS Certified in Planning and Inventory Management (CPIM 8.0) Sample Questions (Q123-Q128):

NEW QUESTION # 123
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?

A. Negotiate using email as an alternative with the customer.
B. Use current third-party logistics provider (3PL) to handle the EDI transactions.
C. Claim hardship and ask the automotive manufacturer for a waiver.
D. Select, install, and implement EDI software.

Answer: B

Explanation:
The largest customer order that could be accepted for delivery at the end of week 3 without making changes to the master production schedule (MPS) is 63. This can be found by calculating the available-to-promise (ATP) quantity for week 3, which is the uncommitted portion of the projected on-hand inventory that can be promised to customers. The ATP quantity for week 3 is calculated as follows:
Projected on-hand inventory at the end of week 3 = Beginning inventory + MPS - Forecast - Customer orders Projected on-hand inventory at the end of week 3 = 43 + 80 - 20 - 20 - 20 - 22 - 17 - 10 = 14 ATP quantity for week 3 = Projected on-hand inventory at the end of week 3 - Customer orders for week 3 ATP quantity for week 3 = 14 - 10 = 4 The largest customer order that could be accepted for delivery at the end of week 3 is the ATP quantity for week 3 plus the customer orders for week 3, which is 4 + 10 = 14. However, this is not one of the options given in the question. Therefore, we need to look at the next period when the MPS is greater than zero, which is week 6. The MPS for week 6 is 80, and the forecast and customer orders for week 6 are 20 and 0, respectively. Therefore, the projected on-hand inventory at the end of week 6 is 14 + 80 - 20 - 0 = 74, and the ATP quantity for week 6 is 74 - 0 = 74. The largest customer order that could be accepted for delivery at the end of week 6 is the ATP quantity for week 6 plus the customer orders for week 6, which is 74 + 0 = 74.
However, this is also not one of the options given in the question. Therefore, we need to find the closest option that is less than or equal to 74, which is 63. Hence, the answer is B. 63. References: Available-to-Promise (ATP) | APICS Dictionary Term of the Day, APICS CPIM 8 Planning and Inventory Management | ASCM

NEW QUESTION # 124
The costs provided in the table below are associated with buying a quantity larger than immediately needed.
What Is the total landed cost based on this table?
Cost CategoryCost
Custom fees$125
Freight$700
Warehouse rent$200
Matenal cost$500

A. $825
B. $1,325
C. $1,525
D. $1,400

Answer: C

Explanation:
The total landed cost is the sum of all the costs associated with buying a quantity larger than immediately needed, including the cost of the product, the custom fees, the freight, and the warehouse rent. Based on the table, the total landed cost can be calculated as follows:
Landed cost = material cost + custom fees + freight + warehouse rent Landed cost = $500 + $125 + $700 +
$200 Landed cost = $1,525
Therefore, the correct answer is D. $1,525. The other options are not correct, as they either omit some of the costs or use incorrect values. The total landed cost reflects the direct costs only to move the product from the factory floor to the customer. It is an important supply chain KPI in inventory management, as it helps to determine the optimal order quantity, pricing, and profitability of the products12. References:
What is Landed Cost? | Calculation and Tips to Improve - ORBA Cloud CFO What is Landed Cost & Why is it Important | Finale Inventory

NEW QUESTION # 125
Which of the following planning modules considers the shortest-range planning goals?

A. Capacity requirementsplanning(CRP)
B. Rough-cut capacity planning (RCCP)
C. Resource planning
D. Input/output analysis

Answer: A

Explanation:
Capacity requirements planning (CRP) is a planning module that considers the shortest-range planning goals.
CRP is a process of determining the amount of available capacity and comparing it with the required capacity to execute the planned orders in the master production schedule (MPS) and the material requirements planning (MRP). CRP is usually done at the work center level and for a time horizon of a few weeks or months. CRP helps to identify and resolve capacity issues, such as overloads or underloads, and to adjust the production plan accordingly. CRP is the most detailed and accurate method of capacity planning, as it considers the actual routings, lead times, and lot sizes of the orders. The other options are not correct, as they either consider longer-range planning goals or less detailed capacity information:
*Input/output analysis is a technique of monitoring the input (planned orders) and output (actual production) of a work center or a product family, and comparing them with the available capacity. Input/output analysis is usually done at the aggregate level and for a time horizon of a few months or quarters. Input/output analysis helps to measure the performance of the production plan and to identify and correct deviations from the plan.
*Resource planning is a process of determining the long-range capacity requirements for labor, equipment, facilities, and other resources, based on the sales and operations plan (S&OP). Resource planning is usually done at the aggregate level and for a time horizon of a few years. Resource planning helps to support the strategic decisions and investments related to the resource capacity.
*Rough-cut capacity planning (RCCP) is a process of verifying the feasibility of the master production schedule (MPS) in terms of the available capacity of critical resources, such as key machines or labor skills.
RCCP is usually done at the product family level and for a time horizon of a few months or quarters. RCCP helps to validate the MPS and to identify and resolve potential capacity bottlenecks or gaps. References:
*[CPIM Part 2 - Section A - Topic 2 - Capacity Planning]
*Capacity Requirements Planning (CRP)
*Input/Output Control
*Resource Planning
*Rough Cut Capacity Planning (RCCP)

NEW QUESTION # 126
A company implementing a localized multi-country strategy to increase market share should engage in which of the following actions?

A. Locate plants on the basis of maximum location advantage.
B. Use the best suppliers regardless of geographic location.
C. Sell the same products under the same brand name worldwide.
D. Sell different product versions in different countries under different brand names.

Answer: D

Explanation:
A localized multi-country strategy is a type of global strategy that involves adapting products, marketing, and operations to the specific needs and preferences of each country or region where the company operates. This strategy allows the company to increase its market share by appealing to the local customers and differentiating itself from the competitors. A localized multi-country strategy requires the company to sell different product versions in different countries under different brand names, as this reflects the high degree of customization and localization that the strategy entails. The other options are not consistent with a localized multi-country strategy, as they imply a low degree of adaptation and a high degree of standardization across the markets. Selling the same products under the same brand name worldwide is a global strategy that assumes universal customer preferences and seeks economies of scale. Locating plants on the basis of maximum location advantage is a transnational strategy that balances global integration and local responsiveness. Using the best suppliers regardless of geographic location is a sourcing strategy that does not necessarily reflect the degree of localization of the products or the marketing. References:
CPIM Part 2 Exam Content Manual, p. 19
Multidomestic strategy: Global success through localization
Localization strategy - How to build with examples

NEW QUESTION # 127
The primary benefit that results from the cross-training of employees is:

A. improved flexibility.
B. improved capacity.
C. shortened lead time.
D. effective problem-solving.

Answer: A

Explanation:
Cross-training employees is the process of training employees for skills and job roles they weren't initially hired for. This allows them to switch between different tasks and roles when needed, which increases the flexibility and adaptability of the workforce. Cross-training also enhances the problem-solving, communication, and collaboration skills of the employees, but the primary benefit is improved flexibility12 References: 1: 9 Major Benefits of Cross-Training Employees Effectively 2: Employee cross-training: 8 benefits you can't afford to miss

NEW QUESTION # 128
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