APICS CPIM Part 1, Module 5 Exam Questions With 100% Correct Answers 2024

APICS CPIM Part 1, Module 5 Exam Questions With 100% Correct Answers 2024 inventory - answerThose stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies), and customer service (finished goods and spare parts). Demand for inventory may be dependent or independent. Inventory functions are anticipation, hedge, cycle (lot size), fluctuation (safety, buffer, or reserve), transportation (pipeline), and service parts. inventory management - answerthe branch of business management concerned with planning and controlling inventories Aggregate inventory - answerlong term inventory planning, grouped at category level Manufacturing efficiency - answermanaging the flow of materials into, through, and out of the production process. Includes strategies like decoupling, leveling production regardless of demand, long runs with few changeovers decoupling inventory - answerAn amount of inventory maintained between entities in a manufacturing or distribution network to create independence between processes or entities. Disconnects rate of use with supply to allow some independence. Raw material - answerPurchased items or extracted materials that are converted via the manufacturing process into components and products. Work in Process (WIP) - answergood or goods in various stages of completion throughout the plant, including all material from raw material that has been released for initial processing up to completely processed material awaiting final inspection and acceptance as finished goods inventory. Finished goods inventory - answerThose items on which all manufacturing operations, including final test, have been completed. These products are available for shipment to the customer as either end items or repair parts. Distribution Inventory - answerInventory, usually spare parts and finished goods, located in the distribution system (e.g., in warehouses or in transit between warehouses and the consumer). Maintenance, repair, and operating (MRO) supplies - answerItems used in support of general operations and maintenance such as maintenance supplies, spare parts, and consumables used in the manufacturing process and supporting operations. Service Part - answerthose modules, components, and elements that are planned to be used without modification to replace an original part Reasons to Hold Inventory - answerSafety stock Decoupling Buffers Anticipation inventory Lot-size inventory Transportation inventory Hedge inventory Safety Stock - answera quantity of stock planned to be in inventory to protect against fluctuations in demand or supply Fluctuation Inventory - answerInventory that is carried as a cushion to protect against forecast error. Inventory Buffer - answerInventory used to protect the throughput of an operation or the schedule against the negative effects caused by delays in delivery, quality problems, delivery of an incorrect quantity, and so on. anticipation inventories - answeradditional inventory above basic pipeline stock to cover projected trends of increasing sales, planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations. seasonal inventory - answerinventory built up to smooth production in anticipation of a peak seasonal demand. Cost of anticipation invetory - answerAvg anticipation inventory amount per time period x carrying cost Lot-size inventory - answerInventory that results whenever quantity price discounts, shipping costs, setup costs, or similar considerations make it more economical to purchase or produce in larger lots than are needed for immediate purposes. Cycle Stock - answerOne part of the concept of inventory. Depletes gradually as customer orders are received and is replenished cyclically when supplier orders are received. Transportation inventory - answerInventory in transit between locations Transit locations - answerInventory in transit between manufacturing and stocking locations Pipeline Stock - answerInventory in the transportation network and the distribution system, including the flow through intermediate stocking points. In-Transit Inventory - answerMaterial moving between two or more locations, usually separated geographically; for example, finished goods being shipped from a plant to a distribution center. hedge inventory - answerA form of inventory buildup to buffer against some event that may not happen. Hedge inventory planning involves speculation related to potential labor strikes, price increases, unsettled governments, and events that could severely impair a company's strategic initiatives. Risk and consequences are unusually high, and top management approval is often required. Balance Sheet - answera financial statement showing the resources owned, the debts owed, and the owner's share of a company at a given point in time. liabilities - answerAn accounting/financial term (balance sheet classification of accounts) representing debts or obligations owed by a company to creditors. owners' equity - answeran accounting/financial term (balance sheet classification of accounts) representing the residual claim by the company's owners or shareholders, or both, to the company's assets less its liabilities. Parts of the balance sheet - answerAssets = Liabilities - Owners Equity Owner's Equity Calculation - answerAssets - Liabilities income statement - answera financial statement showing the net income for a business over a given period of time. Income statement calculation - answerIncome = Revenue - Expenses Cost of goods sold (COGS) - answerAn accounting classification useful for determining the amount of direct materials, direct labor, and allocated overhead associated with the products sold during a given period of time. Direct labor - answerLabor that is specifically applied to the good being manufactured or used in the performance of the service. Direct Material - answerMaterial that becomes a part of the final product in measurable quantities.