CPIM Part 2 Final Study Guide Latest
Updated
Distribution requirements planning (DRP) provides transportation planners with:
Answers
locations for scheduling deliveries.
backhauling information.
load optimization information.
current and future shipping requirements. - ANS-Rationale
DRP can convert the schedule of planned orders into transportation data elements such
as weight, volume, and number of pallets.
current and future shipping requirements.
Which is a decision at the operations strategy level related to planning and controlling
the delivery of products and services?
Answers
Should the operation develop its products or services in house or outsource the design?
What should be the size of the workforce and how much subcontracting should be
used?
How should operations adjust its activity levels in response to demand fluctuations?
What aggregate levels of inventory should be maintained? - ANS-Rationale
Operational strategies address detailed day-to-day planning. The adjustment of activity
levels is one example of an operational decision related to planning and controlling the
delivery of products and services. The other answer choices either relate to other areas
of the operational plan or are tactical (more long-term) decisions.
How should operations adjust its activity levels in response to demand fluctuations?
Which helps set boundaries around the type of work the company will pursue and
indicates what is out of scope?
Answers
Project scope statement
Vision
Core values
Mission - ANS-Rationale
The APICS Dictionary, 16th edition, defines mission as "the overall goal(s) for an
organization set within the parameters of the business scope."
Mission
,What can happen when management fails to articulate a concise operational strategy
that is aligned with overall corporate strategy?
Answers
Departmental "specialists" will tend to optimize their own areas of control without
consideration for the rest of the organization.
Enterprise resources planning (ERP) system accuracy will continue to be reliable
because employee training is part of ERP system startup.
Company-wide solutions will become a viable substitute for the weak operational
strategy.
IT security will likely fall victim to corporate espionage. - ANS-Rationale
In the absence of a more explicit operations strategy, specialists in areas such as
inventory control or process technology will tend to develop their own "systems"
protecting their own organizational positions.
Departmental "specialists" will tend to optimize their own areas of control without
consideration for the rest of the organization.
What is the primary purpose of a core values statement?
Answers
Emphasizes to shareholders the organization's commitment to ethical behavior
Enhances recruitment of the right kind of employees
Provides ethical and business guidepost to organization members
Satisfies the needs of legal and regulatory stakeholders - ANS-Rationale
While a core values statement can support recruitment, its primary function is for the
existing members of the organization. It helps guide future business and ethical
decisions.
Provides ethical and business guidepost to organization members
Strategies that lack stability over time and employee acceptance are the result of an
organization not having which of the following?
Answers
Mission and vision
Differentiation strategies
Dependability and flexibility
Big opportunities and eight accelerators - ANS-Rationale
A business's mission, vision, and core values create a foundation for the organization's
strategy by unifying leaders and employees behind a shared vision of the organization's
principles and future. Without this foundation, strategies can lack stability over time and
broad acceptance by executives, managers, and employees.
Mission and vision
Which quantitative forecasting technique applies past patterns of demand data covering
introduction, growth, maturity, saturation, and decline of similar products to a new
product family?
,Answers
Concurrent forecasting
Seasonality
Life cycle analysis
Trend - ANS-Rationale
Life cycle analysis is a quantitative forecasting technique based on applying past
patterns of demand data covering introduction, growth, maturity, saturation, and decline
of similar products to a new product family.
Life cycle analysis
What is a strengths, weaknesses, opportunities, and threats (SWOT) analysis best used
for?
Answers
Helping formulate and update the company's mission and vision statements
Initiating discussions within the monthly sales and operations planning (S&OP) activity
Identifying whether the company is in a position to pursue attractive market
opportunities and defend against external threats
Convincing venture capitalists to invest in a new business proposal - ANS-Rationale
In evaluating a company's overall situation, a key question is whether the company is in
a position to pursue attractive market opportunities and defend against external threats
to its future well-being.
Identifying whether the company is in a position to pursue attractive market
opportunities and defend against external threats
At a minimum, a company's key success factors should include which of the following?
Answers
Generous portions of narrative from the company's mission and vision statements
Company's targeted year-end stock price
Internal rate of return stated as a percent of earnings
Those attributes or strengths with the greatest impact on future success in the
marketplace - ANS-Rationale
Key success factors are the product attributes, organizational strengths, and
accomplishments that have the greatest impact on future success in the marketplace.
Those attributes or strengths with the greatest impact on future success in the
marketplace
Threats to a company's future well-being often take the form of:
Answers
a smear campaign orchestrated by a nefarious competitor.
a stock market adjustment.
the entry of lower-cost foreign competitors.
burdensome, oppressive regulations. - ANS-Rationale
, Threats to a company's future well-being often stem from the emergence of cheaper or
better technology or the entry of lower-cost foreign competitors.
the entry of lower-cost foreign competitors.
According to the five forces model of competition, when does supplier rivalry weaken?
Answers
When buyer costs to switch brands are low
When buyer costs to switch brands are high
When buyer demand is diminishing
When competitors are numerous - ANS-Rationale
When customers' costs to switch brands of purchased components are high, rivals have
less opportunity to convert customers to their products.
When buyer costs to switch brands are high
Through the use of value chain analysis, cost performance may be improved by:
Answers
charging more for products that use activities within the value chain.
imposing high utilization targets for value chain operations.
identifying and eliminating non-value-added activities.
finding lower-cost raw materials. - ANS-Rationale
Value chain analysis can improve the company's cost performance by identification and
elimination of non-value-added activities.
identifying and eliminating non-value-added activities.
What factors are considered in determining industry attractiveness?
Answers
Supplier collaboration and cumulative competitive pressure
Supplier collaboration and relative strength of seller versus rivals
Profitability and supplier collaboration
Profitability and cumulative competitive pressure - ANS-Rationale
Profitability and cumulative competitive pressure are factors considered when
determining an industry's attractiveness.
Profitability and cumulative competitive pressure
An organization is attempting to break into a market that already has several
competitors who have significant market share. Which action would increase the level of
competition and pressure on these established competitors?
Answers
Imitate the competitors' products features and price closely.
Choose specific products to produce where the cost of switching brands is high for the
consumer.
Introduce a daring but risky strategic innovation.
Updated
Distribution requirements planning (DRP) provides transportation planners with:
Answers
locations for scheduling deliveries.
backhauling information.
load optimization information.
current and future shipping requirements. - ANS-Rationale
DRP can convert the schedule of planned orders into transportation data elements such
as weight, volume, and number of pallets.
current and future shipping requirements.
Which is a decision at the operations strategy level related to planning and controlling
the delivery of products and services?
Answers
Should the operation develop its products or services in house or outsource the design?
What should be the size of the workforce and how much subcontracting should be
used?
How should operations adjust its activity levels in response to demand fluctuations?
What aggregate levels of inventory should be maintained? - ANS-Rationale
Operational strategies address detailed day-to-day planning. The adjustment of activity
levels is one example of an operational decision related to planning and controlling the
delivery of products and services. The other answer choices either relate to other areas
of the operational plan or are tactical (more long-term) decisions.
How should operations adjust its activity levels in response to demand fluctuations?
Which helps set boundaries around the type of work the company will pursue and
indicates what is out of scope?
Answers
Project scope statement
Vision
Core values
Mission - ANS-Rationale
The APICS Dictionary, 16th edition, defines mission as "the overall goal(s) for an
organization set within the parameters of the business scope."
Mission
,What can happen when management fails to articulate a concise operational strategy
that is aligned with overall corporate strategy?
Answers
Departmental "specialists" will tend to optimize their own areas of control without
consideration for the rest of the organization.
Enterprise resources planning (ERP) system accuracy will continue to be reliable
because employee training is part of ERP system startup.
Company-wide solutions will become a viable substitute for the weak operational
strategy.
IT security will likely fall victim to corporate espionage. - ANS-Rationale
In the absence of a more explicit operations strategy, specialists in areas such as
inventory control or process technology will tend to develop their own "systems"
protecting their own organizational positions.
Departmental "specialists" will tend to optimize their own areas of control without
consideration for the rest of the organization.
What is the primary purpose of a core values statement?
Answers
Emphasizes to shareholders the organization's commitment to ethical behavior
Enhances recruitment of the right kind of employees
Provides ethical and business guidepost to organization members
Satisfies the needs of legal and regulatory stakeholders - ANS-Rationale
While a core values statement can support recruitment, its primary function is for the
existing members of the organization. It helps guide future business and ethical
decisions.
Provides ethical and business guidepost to organization members
Strategies that lack stability over time and employee acceptance are the result of an
organization not having which of the following?
Answers
Mission and vision
Differentiation strategies
Dependability and flexibility
Big opportunities and eight accelerators - ANS-Rationale
A business's mission, vision, and core values create a foundation for the organization's
strategy by unifying leaders and employees behind a shared vision of the organization's
principles and future. Without this foundation, strategies can lack stability over time and
broad acceptance by executives, managers, and employees.
Mission and vision
Which quantitative forecasting technique applies past patterns of demand data covering
introduction, growth, maturity, saturation, and decline of similar products to a new
product family?
,Answers
Concurrent forecasting
Seasonality
Life cycle analysis
Trend - ANS-Rationale
Life cycle analysis is a quantitative forecasting technique based on applying past
patterns of demand data covering introduction, growth, maturity, saturation, and decline
of similar products to a new product family.
Life cycle analysis
What is a strengths, weaknesses, opportunities, and threats (SWOT) analysis best used
for?
Answers
Helping formulate and update the company's mission and vision statements
Initiating discussions within the monthly sales and operations planning (S&OP) activity
Identifying whether the company is in a position to pursue attractive market
opportunities and defend against external threats
Convincing venture capitalists to invest in a new business proposal - ANS-Rationale
In evaluating a company's overall situation, a key question is whether the company is in
a position to pursue attractive market opportunities and defend against external threats
to its future well-being.
Identifying whether the company is in a position to pursue attractive market
opportunities and defend against external threats
At a minimum, a company's key success factors should include which of the following?
Answers
Generous portions of narrative from the company's mission and vision statements
Company's targeted year-end stock price
Internal rate of return stated as a percent of earnings
Those attributes or strengths with the greatest impact on future success in the
marketplace - ANS-Rationale
Key success factors are the product attributes, organizational strengths, and
accomplishments that have the greatest impact on future success in the marketplace.
Those attributes or strengths with the greatest impact on future success in the
marketplace
Threats to a company's future well-being often take the form of:
Answers
a smear campaign orchestrated by a nefarious competitor.
a stock market adjustment.
the entry of lower-cost foreign competitors.
burdensome, oppressive regulations. - ANS-Rationale
, Threats to a company's future well-being often stem from the emergence of cheaper or
better technology or the entry of lower-cost foreign competitors.
the entry of lower-cost foreign competitors.
According to the five forces model of competition, when does supplier rivalry weaken?
Answers
When buyer costs to switch brands are low
When buyer costs to switch brands are high
When buyer demand is diminishing
When competitors are numerous - ANS-Rationale
When customers' costs to switch brands of purchased components are high, rivals have
less opportunity to convert customers to their products.
When buyer costs to switch brands are high
Through the use of value chain analysis, cost performance may be improved by:
Answers
charging more for products that use activities within the value chain.
imposing high utilization targets for value chain operations.
identifying and eliminating non-value-added activities.
finding lower-cost raw materials. - ANS-Rationale
Value chain analysis can improve the company's cost performance by identification and
elimination of non-value-added activities.
identifying and eliminating non-value-added activities.
What factors are considered in determining industry attractiveness?
Answers
Supplier collaboration and cumulative competitive pressure
Supplier collaboration and relative strength of seller versus rivals
Profitability and supplier collaboration
Profitability and cumulative competitive pressure - ANS-Rationale
Profitability and cumulative competitive pressure are factors considered when
determining an industry's attractiveness.
Profitability and cumulative competitive pressure
An organization is attempting to break into a market that already has several
competitors who have significant market share. Which action would increase the level of
competition and pressure on these established competitors?
Answers
Imitate the competitors' products features and price closely.
Choose specific products to produce where the cost of switching brands is high for the
consumer.
Introduce a daring but risky strategic innovation.
