Certified in Planning and Inventory Management v1.0

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Exam contains 258 questions

A manufacturer has a primary assembly line supported by output from several subassembly lines. Which of the following scenarios would be the best argument for a multilevel master scheduling process?

  • A. Low variation in aggregate subassembly demand
  • B. High variation in aggregate subassembly demand
  • C. Low variation in subassembly demand mix
  • D. High variation in subassembly demand mix


Answer : D

One way to mitigate liability risk in the supply chain is to:

  • A. negotiate lower component cost.
  • B. require traceability for components.
  • C. push inventory to supplier locations.
  • D. use less-than-truckload (LTL) shipments more frequently.


Answer : B

Which of the following is the fundamental difference between finite loading and other capacity planning approaches?

  • A. It is highly dependent on advanced computer software to function effectively.
  • B. It is only managed by shop floor supervisors.
  • C. It can use historical information to drive decision-making processes.
  • D. It considers adjustments to plans based on planned capacity utilization.


Answer : D

The production plan relates to a firm’s financial planning because it is used to:

  • A. calculate standard product costs.
  • B. determine variable costs.
  • C. project payroll costs.
  • D. identify future cash needs


Answer : D

The time spent in queue by a specific manufacturing job is determined by which of the following factors related to the order?

  • A. Lot size
  • B. Priority
  • C. Setup time
  • D. Run time


Answer : B

Which of the following statements characterizes a pull system in distribution management?

  • A. Each warehouse makes its own replenishment decisions.
  • B. It uses distribution requirements planning (DRP).
  • C. It uses uniform performance measures.
  • D. It uses fair-share allocation.


Answer : A

When starting an external benchmarking study, a firm must first:

  • A. determine the metrics which will be measured and compared.
  • B. identify the target firms with which to benchmark against.
  • C. understand its own processes and document performance.
  • D. determine its areas of weakness versus the competition’s.


Answer : C

Risk pooling would work best for items with:

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


Answer : D

A company confirms a customer order based on available capacity and inventory, even though the current production plan does not cover the entire order quantity. This situation is an example of what type of order fulfillment policy?

  • A. Assemble-to-order (ATO)
  • B. Capable-to-promise (CTP)
  • C. Available-to-promise (ATP)
  • D. Configure-to-order (CTO)


Answer : B

An effective approach to projecting requirements for materials with long lead times includes which of the following options?

  • A. Initiate a multilevel master schedule.
  • B. Use phantom bills of materials (BOMs).
  • C. Increase the level of safety stock.
  • D. Decrease the planning horizon.


Answer : A

Which of the following criteria is used to determine safety stock in a distribution center (DC)?

  • A. Economic order quantity (EOQ)
  • B. Seasonal index value
  • C. Alpha factor level
  • D. Probability of stocking out


Answer : D

According to quality function deployment (QFD), customer needs are gathered through:

  • A. employee suggestions.
  • B. technical specifications.
  • C. surveys.
  • D. historical data.


Answer : C

Which of the following techniques would a group use to prioritize problems?

  • A. Critical path analysis
  • B. Pareto analysis
  • C. Scatter charts
  • D. Cause-and-effect diagrams


Answer : B

Which of the following methods would be appropriate for forecasting the demand for a product family when there is a significant trend and seasonality in the demand history?

  • A. Econometric models
  • B. Computer simulation
  • C. Time series decomposition
  • D. Weighted moving average


Answer : C

Which of the following measurements indicates there may be bias in the forecast model?

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


Answer : C

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Exam contains 258 questions

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