CPIM 8.0 test questions and answers with
solutions
Using ABC classification for cycle counting, A items are counted every
week, B items are counted quarterly, and C items are counted annually.
There are 2,000 A items, 5,000 B items, and 20,000 C items. How many
items are counted each day in total if there are 50 working weeks in the
year translating to 250 workdays in the year?
A. 574 units
B. 404 units
C. 395 units
D. 560 units
D. 560 units
To determine the total number of items to count, multiply the number of
items by the number of times the item is counted for each class and
then sum the results. A items are counted weekly, so this is 50 times per
year: 2,000 units × 50 weeks = 100,000 counts. B items are counted
quarterly, so this is 4 times per year: 5,000 × 4 = 20,000 counts. C items
are counted once, so this is just 20,000 counts. Next, sum the counts:
100,000 counts + 20,000 counts + 20,000 counts = 140,000 counts. Then
divide this sum by the number of manufacturing calendar days in the
year: 140,000 counts/250 days = 560 counts per day.
With which of the following modes of transportation does the carrier
typically have the highest fixed costs?
A. Rail
B. Air
,C. Road
D. Water
A. Rail
In contrast to variable costs, fixed costs do not change with the volume
of goods carried. Railways have large fixed costs, for example, tracks,
terminals, and vehicles.
Senior management agrees to expedite a customer order. After being
notified, what should operations managers do first?
A. Ignore the expediting if it is within the demand time fence.
B. Evaluate lateral and downstream operations for impact on schedules
and costs.
C. Increase capacity to enable handling the normal schedule plus the
increased load.
D. Add the expedited order to the top of the schedule and automatically
reschedule everything else.
B. Evaluate lateral and downstream operations for impact on schedules
and costs.
After detecting exceptions to plans, operations managers need to follow
an exception management process, which includes evaluating lateral and
downstream operations for their impact on schedules and costs. Since
senior management has approved this expediting, it is not possible to
just ignore it. Adding the expedited order to the top of the queue might
be done, but it would be a later step after evaluating impact and
feasibility.
In addition to customer orders, the master production schedule (MPS)
might handle which of the following types of demand?
A. Dependent demand
B. Interplant orders
C. Parts list items
D. Bill-of-material items
,B. Interplant orders
Interplant demand is usually handled by the master production
scheduling system in a manner similar to customer orders.
An organization implements a dock-to-stock program with a key supplier.
How will this impact the total cost of ownership (TCO) if the program is
implemented correctly?
A. TCO will not be affected because passing costs on to the supplier
cannot improve costs from a total supply chain perspective.
B. TCO will be lower due to no receiving and inspection without a higher
average cost of poor quality.
C. TCO will initially be higher but will eventually be lower as the cost of
poor quality goes down.
D. TCO will be higher because the costs of supplier relationship
management will more than offset shorter lead times from such a
program.
B. TCO will be lower due to no receiving and inspection without a higher
average cost of poor quality.
The total cost of ownership in supply chain management speaks to the
sum of all the costs associated with every activity of the supply stream.
In this case, dock-to-stock is a program through which specific quality
and packaging requirements are met before the product is released.
Prequalified product is shipped directly into the customer's inventory.
Dock-to-stock eliminates the costly handling of components, specifically
in receiving and inspection, and enables product to move directly into
production. If the program is implemented correctly, the costs of poor
quality should not increase. Even from a total supply chain perspective,
TCO will decrease because only one party is performing these quality
steps rather than both parties doing the same task.
What is the best reason for closing the loop between master scheduling
and sales and operations planning (S&OP)?
A. One is the plan, and one confirms execution of the plan.
, B. One is the plan, and one shows where the plan is valid.
C. One is the plan, and one is the execution of the plan.
D. One is the plan, and one confirms resource availability.
C. One is the plan, and one is the execution of the plan.
S&OP is the plan, and master scheduling identifies how the plan will be
executed.
Large-scale productivity software often experiences implementation
delays or initially performs below expectations. What mitigation strategy
could be used in this situation?
A. Budget for additional time and reduced performance after
implementation.
B. Implement it in small pieces while keeping existing systems in place.
C. Keep the old system running in parallel until there is 100%
functionality and user acceptance.
D. Hire a third party to implement it.
A. Budget for additional time and reduced performance after
implementation.
With productivity software implementations, it is often the case that
performance drops below existing and projected levels until the
application "works as expected."
Which of the following statements is true of inventory when the final
product design is continuously influenced by the customer?
A. Large safety stocks must be maintained.
B. Lot-size inventory increases to the finished goods level.
C. Buffer inventory should be held closer to the raw material stage.
D. Customer influence on the product design should not affect inventory
levels.
C. Buffer inventory should be held closer to the raw material stage.
Because the final configured item is often not determined until the
actual customer order, leaving materials and components in an
solutions
Using ABC classification for cycle counting, A items are counted every
week, B items are counted quarterly, and C items are counted annually.
There are 2,000 A items, 5,000 B items, and 20,000 C items. How many
items are counted each day in total if there are 50 working weeks in the
year translating to 250 workdays in the year?
A. 574 units
B. 404 units
C. 395 units
D. 560 units
D. 560 units
To determine the total number of items to count, multiply the number of
items by the number of times the item is counted for each class and
then sum the results. A items are counted weekly, so this is 50 times per
year: 2,000 units × 50 weeks = 100,000 counts. B items are counted
quarterly, so this is 4 times per year: 5,000 × 4 = 20,000 counts. C items
are counted once, so this is just 20,000 counts. Next, sum the counts:
100,000 counts + 20,000 counts + 20,000 counts = 140,000 counts. Then
divide this sum by the number of manufacturing calendar days in the
year: 140,000 counts/250 days = 560 counts per day.
With which of the following modes of transportation does the carrier
typically have the highest fixed costs?
A. Rail
B. Air
,C. Road
D. Water
A. Rail
In contrast to variable costs, fixed costs do not change with the volume
of goods carried. Railways have large fixed costs, for example, tracks,
terminals, and vehicles.
Senior management agrees to expedite a customer order. After being
notified, what should operations managers do first?
A. Ignore the expediting if it is within the demand time fence.
B. Evaluate lateral and downstream operations for impact on schedules
and costs.
C. Increase capacity to enable handling the normal schedule plus the
increased load.
D. Add the expedited order to the top of the schedule and automatically
reschedule everything else.
B. Evaluate lateral and downstream operations for impact on schedules
and costs.
After detecting exceptions to plans, operations managers need to follow
an exception management process, which includes evaluating lateral and
downstream operations for their impact on schedules and costs. Since
senior management has approved this expediting, it is not possible to
just ignore it. Adding the expedited order to the top of the queue might
be done, but it would be a later step after evaluating impact and
feasibility.
In addition to customer orders, the master production schedule (MPS)
might handle which of the following types of demand?
A. Dependent demand
B. Interplant orders
C. Parts list items
D. Bill-of-material items
,B. Interplant orders
Interplant demand is usually handled by the master production
scheduling system in a manner similar to customer orders.
An organization implements a dock-to-stock program with a key supplier.
How will this impact the total cost of ownership (TCO) if the program is
implemented correctly?
A. TCO will not be affected because passing costs on to the supplier
cannot improve costs from a total supply chain perspective.
B. TCO will be lower due to no receiving and inspection without a higher
average cost of poor quality.
C. TCO will initially be higher but will eventually be lower as the cost of
poor quality goes down.
D. TCO will be higher because the costs of supplier relationship
management will more than offset shorter lead times from such a
program.
B. TCO will be lower due to no receiving and inspection without a higher
average cost of poor quality.
The total cost of ownership in supply chain management speaks to the
sum of all the costs associated with every activity of the supply stream.
In this case, dock-to-stock is a program through which specific quality
and packaging requirements are met before the product is released.
Prequalified product is shipped directly into the customer's inventory.
Dock-to-stock eliminates the costly handling of components, specifically
in receiving and inspection, and enables product to move directly into
production. If the program is implemented correctly, the costs of poor
quality should not increase. Even from a total supply chain perspective,
TCO will decrease because only one party is performing these quality
steps rather than both parties doing the same task.
What is the best reason for closing the loop between master scheduling
and sales and operations planning (S&OP)?
A. One is the plan, and one confirms execution of the plan.
, B. One is the plan, and one shows where the plan is valid.
C. One is the plan, and one is the execution of the plan.
D. One is the plan, and one confirms resource availability.
C. One is the plan, and one is the execution of the plan.
S&OP is the plan, and master scheduling identifies how the plan will be
executed.
Large-scale productivity software often experiences implementation
delays or initially performs below expectations. What mitigation strategy
could be used in this situation?
A. Budget for additional time and reduced performance after
implementation.
B. Implement it in small pieces while keeping existing systems in place.
C. Keep the old system running in parallel until there is 100%
functionality and user acceptance.
D. Hire a third party to implement it.
A. Budget for additional time and reduced performance after
implementation.
With productivity software implementations, it is often the case that
performance drops below existing and projected levels until the
application "works as expected."
Which of the following statements is true of inventory when the final
product design is continuously influenced by the customer?
A. Large safety stocks must be maintained.
B. Lot-size inventory increases to the finished goods level.
C. Buffer inventory should be held closer to the raw material stage.
D. Customer influence on the product design should not affect inventory
levels.
C. Buffer inventory should be held closer to the raw material stage.
Because the final configured item is often not determined until the
actual customer order, leaving materials and components in an
