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Latest APICS CPIM 8.0 Free Exam Questions | SPOTO

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Question #1
Which of the following inventory management techniques is most responsive to changes in demand levels?
A. Two-bin system
B. Periodic review systemcorrect
C. Cycle counting
D. ABC classification
View answer
Correct Answer: B
Question #2
The demand for an item has increasing forecast error, whereas all other factors remain constant. Which of the following remains constant while maintaining the same customer service level?
A. Reorder point(ROP)
B. Safety stock
C. Inventory investment
D. Safety factorcorrect
View answer
Correct Answer: D
Question #3
If fixed costs are §200,000 and 20,000 units are produced, a unit's fixed cost is §10. This is an example of:
A. variable costing
B. activity-based costing (ABC)
C. absorption costing
D. overhead costing
View answer
Correct Answer: C
Question #4
A low-cost provider strategy works best when which of the following conditions are met?
A. Price competition among rivals is similar
B. Buyers are more price sensitive
C. There are many ways to achieve product differentiation
D. There are few industry newcomers
View answer
Correct Answer: B
Question #5
Which of the following prioritization rules will have the greatest impact In reducing the number of orders In queue?
A. Critical ratio
B. Shortest processing timecorrect
C. Fewest operations remaining
D. First come, first served
View answer
Correct Answer: B
Question #6
Which of the following prioritization rules will have the greatest impact In reducing the number of orders In queue?
A. Critical ratio
B. Shortest processing timecorrect
C. Fewest operations remaining
D. First come, first served
View answer
Correct Answer: B
Question #7
In which of the following phases of the product life cycle is product price most effective in influencing demand?
A. Introductioncorrect
B. Growth
C. Maturity
D. Decline
View answer
Correct Answer: A
Question #8
Which of the following statements is an assumption on which the economic order quantity (EOQ) model is based?
A. Customer demand is known but seasonal
B. Items are purchased and/or produced continuously and not in batches
C. Order preparation costs and inventory-carrying costs are constant and known
D. Holding costs, as a percentage of the unit cost, are variable
View answer
Correct Answer: C
Question #9
A manufacturer has a forecasted annual demand of 1,000,000 units for a new product. They have to choose 1 of 4 new pieces of equipment to produce this product. Assume that revenue will be $10 per unit for all 4 options. Which machine will maximize their profit if the manufacturer anticipates market demand will be steady for 3 years and there is no residual value for any of the equipment choices? MachineFixed CostVariable Cost per UnitAnnual Capacity AS100.000$6 00800,000 units B$200,000$5 501.000,000 units
A. Machine A
B. Machine B
C. Machine Ccorrect
D. Machine D
View answer
Correct Answer: C
Question #10
How would a master production schedule (MPS) be used In an assemble-to-order (ATO) manufacturing environment?
A. The MPS is used to plan subassemblies and components; end items are only scheduled when a customer order is received
B. Subassemblies are scheduled in the MPS when the customer order is received, and production can start
C. Typically, the MPS is not used in companies using an ATO manufacturing strategy
D. Often In an ATO environment, the MPS is created once a year and only revised if a product is discontinued
View answer
Correct Answer: A
Question #11
An advantage of applying ABC classification to a firm's replenishment items is that:
A. it distinguishes independent demand from dependent demand
B. it allows planners to focus on critical products
C. it provides better order quantities than the economic order quantity (EOQ)
D. it allows the firm to utilize time-phased order point (TPOP)
View answer
Correct Answer: B
Question #12
Which of the following production activity control (PAC) techniques focuses on optimizing output?
A. Gantt chart
B. Priority sequencing rules
C. Theory of constraints (TOC) schedulingcorrect
D. Critical path management (CPM)
View answer
Correct Answer: C
Question #13
Which of the following environments is most suitable for the use of kanban systems?
A. Short product life cycles
B. High levels of customization
C. Intermittent production
D. Stable and predictable demandcorrect
View answer
Correct Answer: D
Question #14
For a process that is outside its upper control limit (UCL), which of the following techniques would best be used to return the process under control?
A. Conduct a Pareto analysis
B. Plan-do-check-action (PDCA)correct
C. Plot histograms
D. Monitor control charts
View answer
Correct Answer: B
Question #15
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
View answer
Correct Answer: D
Question #16
For a process that is outside its upper control limit (UCL), which of the following techniques would best be used to return the process under control?
A. Conduct a Pareto analysis
B. Plan-do-check-action (PDCA)correct
C. Plot histograms
D. Monitor control charts
View answer
Correct Answer: B
Question #17
The primary reason for tracing a component with scheduling problems to Its master production schedule (MPS) item is to:
A. revise the rough-cut capacity plan
B. reschedule a related component on the shop floor
C. check the accuracy of the bills for the MPS items
D. determine if a customer order will be impacted
View answer
Correct Answer: D
Question #18
Which of the following stock location systems would you use in a repetitive manufacturing, lean environment?
A. Fixed location
B. Floating location
C. Point-of-use storagecorrect
D. Central storage
View answer
Correct Answer: C
Question #19
Global outsourcing and shared suppliers serving an industry are drivers of which category of risk?
A. Supply disruptions
B. Forecast inaccuracy
C. Procurement problems
D. Loss of intellectual propertycorrect
View answer
Correct Answer: D
Question #20
A statistical safety stock calculation would be appropriate for:
A. components used in multiple end items
B. new products at time of introduction
C. end items with stable demand
D. supply-constrained raw materials
View answer
Correct Answer: C

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