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APICS Certified in Planning and Inventory Management(Part 2) - CPIM-Part-2 Exam Questions

QUESTION NO: 1
Which of the following strategies can improve the effectiveness of a company's customer value proposition and enhance itsdifferentiation in the market?

A. Outsource activities to outside vendors or contractors. B. Adopt best practices that improve product design. C. Relocate high-cost activities to other geographic areas. D. Invest in productivity enhancing technological improvements.

Correct Answer: B

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QUESTION NO: 2
Return on investment (ROI) is decreased by which of the following activities?

A. Increasing prices B. Increasing cost of sales C. Reducing inventory levels D. Increasing sales volume

Correct Answer: B

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QUESTION NO: 3
In a make-to-order (MTO) environment, inputs to sales and operations planning (S&0P) should include the:

A. finished goods inventory. B. available-to-promise (ATP) data. C. work-in-process (WIP) inventory. D. projected backlog of customer orders.

Correct Answer: D

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QUESTION NO: 4
An online retailer moves from delivering hard copy books to offering digital downloads only. This action may result in an increased possibility of:

A. loss of intellectual property. B. supply disruptions. C. supply delays. D. forecast inaccuracy.

Correct Answer: A

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QUESTION NO: 5
Risk pooling would work best for items with:

A. high demand uncertainty and long lead times. B. low demand uncertainty and long lead times. C. low demand uncertainty and short lead times. D. high demand uncertainty and short lead times.

Correct Answer: A

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QUESTION NO: 6
Which of the following activities would be effective to mitigate the bullwhip effect?

A. Increase inventory. B. Implement track and trace technology. C. Reduce lead times. D. Use a push system.

Correct Answer: C

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QUESTION NO: 7
A factory work center has the following work orders. What is the load on this work center?

A. 252.5 hours B. 332.5 hours C. 248 hours D. 257 hours

Correct Answer: B

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QUESTION NO: 8
Which of the following factors typically would distort a sales forecast that is based solely on shipment history?

A. Material shortages B. Currency exchange rates C. Customer demands D. Labor rate changes

Correct Answer: A

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QUESTION NO: 9
Which of the following statements is true about the mean time between failures (MTBF) measure?

A. Itis used for non-repairable products. B. An increase in MTBF is proportional to an increase in quality. C. Itis a useful measure of reliability. D. Itis the same as operating life or service life.

Correct Answer: C

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QUESTION NO: 10
In an assemble-to-order (ATO) environment, option overplanning is used to:

A. address uncertainty in the product mix. B. schedule detailed production. C. verify appropriate inventory levels, D. compensatesfor forecast bias.

Correct Answer: A

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QUESTION NO: 11
A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer servicelevels for customers B and C?

A. Customer C has higher service level B. Customer B and C have same service level C. Customer B has higher service level D. 100% service levels for B and C

Correct Answer: C

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QUESTION NO: 12
Long lead-time items with stable demand would best be supported by a supply chain:

A. positioning inventory close to the consumer. B. linked through an enterprise resources planning (ERP) system. C. designed to be responsive. D. using a pull system.

Correct Answer: A

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QUESTION NO: 13
Which of the following techniques would be most appropriate to use to develop a forecast?

A. Delphi method B. Moving average C. Exponentialsmoothing D. Time series decomposition

Correct Answer: C

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QUESTION NO: 14
Which of the following measurements indicates there may be bias in the forecast model?

A. Variance B. Mean absolute deviation (MAD) C. Standard deviation D. Tracking signal

Correct Answer: D

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QUESTION NO: 15
What is a result of effective production activity control (PAC)?

A. Fewer machine hours are required for production B. Less scrap and rework on the shop floor C. Available capacity is increased D. Actual input/output matches planned input/output

Correct Answer: D

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