APICS EXAM 1 QUESTIONS AND ANSWERS
Inventory is the ____ of Supply Chain - Answers-life blood
Inventory Turns equation - Answers-Annual COGS/ Avrg inventory $
Matrix structure - Answers-you can have more than one boss, one product group, Team
members come from different teams are also members of the product management
office
Centralized corp structure - Answers-decisions are made at the top
Appropriate response to risk (4 Parts) - Answers-1. Try to avoid risk
2. Risk acceptance
3. Risk transfer
4. Risk mitigation
Implement and monitor plan
Job enlargement - Answers-giving people more work to do
Job enrichment - Answers-giving workers more authority
Job Rotation - Answers-changing positions to provide broader perspective (ex LDP
Program)
Business planning - Answers-Done by product families and translated into synchronized
functional plans
Variable costing is what kind of tool - Answers-lean.. shows fixed OH on your income
statement
Job-Order costing - Answers-this is made to order environment
Process costing - Answers-costs are collected for the period and averaged
Strategy - Answers-A plan to use the organizations resources to achieve a sustainable
competitive advantage
vision - Answers-shared perception of the future, what the organization wants to
become
Mission - Answers-overall goals within business scope
Values - Answers-organizational guideposts for all business and ethical decisions
, Generic Business strategies (5) - Answers-1. low-cost provider
2. Differentiation
3. Focused low-cost provider
4. Focused differentiation
5. Best-cost provider
Differentiation Strategy - Answers--made to order environment
-profits margins will contribute to the bottom line
- extra capacity to get things done on time
- customer due dates are NON NEGOTIABLE
3 Objectives of MPR - Answers-1. customer service levels
2. cost of production
3. inventory investment
Current assets - Answers-assets that can be spent/ used in less than one year
Inventory ratio (aka activity ratio) - Answers-COGS/ Avrg Inventory
Fixed assets examples - Answers-gross property, plant and equipment
Payback period - Answers-cost of investment/ annual cash savings
Manufacturing costs (aka direct costs) - Answers-DM, DL, MOH
Product cost is recognized when - Answers-products are sold
Period costs - Answers-accrued at time of purchase, not included in COGS
Sales and operations planning - Answers-aggregation level- product family units
happens monthly/ quarterly
forecast length should be several months out
Sales and operations (<->) - Answers-resource planning
Master scheduling (<->) - Answers-rough- cut capacity planning
Demand management (<->) - Answers-distribution planning
Moving Average - Answers-Sum of demand of most recent periods/ # of periods
engineer to order - Answers-material is at the supplier's supplier (can be special
ordered)
make- to - order - Answers-material at supplier
Inventory is the ____ of Supply Chain - Answers-life blood
Inventory Turns equation - Answers-Annual COGS/ Avrg inventory $
Matrix structure - Answers-you can have more than one boss, one product group, Team
members come from different teams are also members of the product management
office
Centralized corp structure - Answers-decisions are made at the top
Appropriate response to risk (4 Parts) - Answers-1. Try to avoid risk
2. Risk acceptance
3. Risk transfer
4. Risk mitigation
Implement and monitor plan
Job enlargement - Answers-giving people more work to do
Job enrichment - Answers-giving workers more authority
Job Rotation - Answers-changing positions to provide broader perspective (ex LDP
Program)
Business planning - Answers-Done by product families and translated into synchronized
functional plans
Variable costing is what kind of tool - Answers-lean.. shows fixed OH on your income
statement
Job-Order costing - Answers-this is made to order environment
Process costing - Answers-costs are collected for the period and averaged
Strategy - Answers-A plan to use the organizations resources to achieve a sustainable
competitive advantage
vision - Answers-shared perception of the future, what the organization wants to
become
Mission - Answers-overall goals within business scope
Values - Answers-organizational guideposts for all business and ethical decisions
, Generic Business strategies (5) - Answers-1. low-cost provider
2. Differentiation
3. Focused low-cost provider
4. Focused differentiation
5. Best-cost provider
Differentiation Strategy - Answers--made to order environment
-profits margins will contribute to the bottom line
- extra capacity to get things done on time
- customer due dates are NON NEGOTIABLE
3 Objectives of MPR - Answers-1. customer service levels
2. cost of production
3. inventory investment
Current assets - Answers-assets that can be spent/ used in less than one year
Inventory ratio (aka activity ratio) - Answers-COGS/ Avrg Inventory
Fixed assets examples - Answers-gross property, plant and equipment
Payback period - Answers-cost of investment/ annual cash savings
Manufacturing costs (aka direct costs) - Answers-DM, DL, MOH
Product cost is recognized when - Answers-products are sold
Period costs - Answers-accrued at time of purchase, not included in COGS
Sales and operations planning - Answers-aggregation level- product family units
happens monthly/ quarterly
forecast length should be several months out
Sales and operations (<->) - Answers-resource planning
Master scheduling (<->) - Answers-rough- cut capacity planning
Demand management (<->) - Answers-distribution planning
Moving Average - Answers-Sum of demand of most recent periods/ # of periods
engineer to order - Answers-material is at the supplier's supplier (can be special
ordered)
make- to - order - Answers-material at supplier
