CPIM

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JMANDERSON675
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158410
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CPIM
Updated:
2012-06-12 19:38:01
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CPIM
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Description:
BASISS OF SUPPLY CHAIN MANAGEMENT
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  1. What are the 3 types of advertising media?
    • 1. Print Media
    • 2. Electronic Media
    • 3. Outdoor media
  2. What type of inventory category is for items used in production that do not become a part of the product?

    A.Work in Progress
    B.Service Parts
    C.Raw Materials
    D.MRO Inventory
    D. MRO Inventory

    Explanation: Maintenance, repair, and operational supplies (MROs) are items used in production that do not become a part of the product. These include hand tools, spare parts, lubricants, and cleaning supplies.
    (this multiple choice question has been scrambled)
  3. Which of the following activities are a part of Physical Supply/ Distribution
    I. Packaging
    II. Transportation
    III. MRP
    IV. Order entry

    A.I.II, & IV Only
    B.I, II, III, & IV
    C.I & II Only
    D.I, III, IV
    A.I.II, & IV Only

    Explanation: Physical Supply/ Distribution include all of the following activities 1. Transportation 2. Distribution inventory 3. Warehousing 4. Packaging 5. Materials handling 6. Order Entry
    (this multiple choice question has been scrambled)
  4. If your company was going to turn oil into gasoline, what operating process type should you use?
    A.Continuous
    B.Lot/ Batch
    C.Line/ Repetitive
    D.Project
    A.Continuous

    Explanation: Since turning oil into gasoline is a process - a continuous process line would be best for this company.
    (this multiple choice question has been scrambled)
  5. Just in Time philosophy is:

    A. the elimination of waste
    B.Materials show at the dock at the right time
    C. Produce high quality products for customer
    D.Get products to customers quickly
    A. the elimination of waste

    Explanation: Just in Time manufacturing is measured in many ways, but the most popular is "the elimination of waste". Waste means anything other than the minimum amount of materials and resource that is absolutely necessary to add value.
    (this multiple choice question has been scrambled)
  6. What tool is used to rank the frequency of a material being purchased by a customer?

    A.Failure Mode Effects Analysis
    B.Process flow diagram
    C.Pareto Analysis
    D.Cause and Effect Diagram
    C.Pareto Analysis

    Explanation: When you rank the frequency of something (problems/ customer orders, etc) you would use Pareto analysis to rank them (Pareto analysis is also known as the 80/20 rule)
    (this multiple choice question has been scrambled)
  7. An Ishikawa diagram is also called a:

    A.Process Map
    B.Failure Mode Effects Analysis
    C.Cause-and-effect diagram
    D.Pareto Diagram
    C.Cause-and-effect diagram

    Explanation: An Ishikawa diagram is also called a case and effect diagram or a fishbone diagram
    (this multiple choice question has been scrambled)
  8. For master production scheduling, the minimum planning horizon is equal to the:

    A.Manufacturing lead time
    B.shortest cumulative lead time
    C.Just in time
    D.longest cumulative lead time
    D.longest cumulative lead time

    Explanation: For master production scheduling, the minimum planning horizon is the longest cumulative or end to end lead time.
    (this multiple choice question has been scrambled)
  9. What would BEST describe Rough Cut Capacity Planning?

    A.Check if there is enough capacity for to support MRP
    B.Check if there is enough capacity against a work center to support Production Activity Control
    C.Check if resources are available by product family
    D.Check if critical resources are available to support the preliminary MPS
    D.Check if critical resources are available to support the preliminary MPS

    Explanation: The RCCP is to check if critical resources are available to support the preliminary MPS
    (this multiple choice question has been scrambled)
  10. If company A has
    8 Million in Revenue
    15 Million in Assets
    10 Million in Liabilites
    4 Million in Expenses
    What does Owners Equity equal to ?

    A. 5 Million
    B. -5 Million
    C. 11 Million
    D. 4 Million
    A. 5 Million
    (this multiple choice question has been scrambled)
  11. Explanation: Assets = Liabilities + Owners equity on the balance sheet. For this equation we will rearrange the variables to be Assets- Liabilities = Owners Equity so 15 Million - 10 Million = 5 Million Expense and Revenue are not used in Owners' Equity Calculation
  12. What function(s) would want to maintain high finished goods inventory?

    A. Production Only
    B. Production and Marketing
    C. Marketing Only
    D. Finance and Marketing
    C. Marketing Only
    (this multiple choice question has been scrambled)
  13. Explanation: Marketing function would want to maintain high inventories so that goods are always available. This would satisfy's marketing objective of high customer service. Production would want high raw material inventories, but would not necessarily want high finished goods inventory. Finance would always want low inventory to reduce costs
  14. A Master Production Schedule is defined as:

    A. An actual build schedule
    B. An anticipated build schedule
    C. Driven from Materials Requirements Plan
    D. Driven from RCCP
    B. An anticipated build schedule
    (this multiple choice question has been scrambled)
  15. Explanation: A Master Production Schedule is defined as an ANTICIPATED build schedule. It is an initial plan. The actual build schedule is called the final assembly schedule (FAS) MPS drives MRP not MRP drives MPS MPS drives RCCP not RCCP drive MPS
  16. The role of central supply in a decentralized distribution system is to:

    A. Replenish stock at regular intervals
    B. Respond to orders from distribution site
    C.To forecast demand on behalf of the distribution center
    D.To help coordinate forecasts across the distribution network
    B. Respond to orders from distribution site

    Explanation: In a decentralized distribution system, each distribution center is responsible for their own forecasts and placing orders on centralized supply. In a centralized system central supply will plan forecasts on behalf of the distribution center and send them parts when central supply sees it is necessary
    (this multiple choice question has been scrambled)
  17. Which of the following does Capacity Requirements Planning shows the feasibility for?

    A. Production Planning
    B. Master Production Scheduling
    C. Material Requirements Planning
    D. Production Activity Control
    C. Material Requirements Planning

    Explanation: Capacity requirements planning shows the feasibility for Material requirements planning Rough Cut Capacity shows the feasibility of Master Production Scheduling
    (this multiple choice question has been scrambled)
  18. What is the best reason to hold inventory?

    A. A company should never hold inventory
    B. Minimize the levels in a Bill of Materials
    C. Reduce the amount of purchases from suppliers
    D. To decouple production from demand variation
    D. To decouple production from demand variation

    Explanation: The reason to hold inventory is to decouple production schedule from the variation in demand. Holding inventory does not reduce purchases from suppliers, minimize the levels in a BOM. It is a goal to hold as little inventory as possible, but not to have no inventory
    (this multiple choice question has been scrambled)
  19. What is MOST likely to be independent demand?

    A. WIP Inventory
    B. A sub assembly at the factory
    C. A spare part for a jet engine
    D. Raw Material for a factory
    C. A spare part for a jet engine

    Explanation: Independent demand is what a customer will purchase from the company. A jet plane spare part is the only independent item. All other answers are sub assemblies (dependent) on higher level items that would be sold to a customer.
    (this multiple choice question has been scrambled)
  20. In a Physical Distribution System, DRP stands for what?

    A. Distribution Requirements Planning
    B. Disaster Recovery Plan
    C. Distribution Recovery Plan
    D. Dividend Reinvestment Plan
    A. Distribution Requirements Planning
    (this multiple choice question has been scrambled)
  21. Explanation: is a method used in business administration for planning orders within a supply chain. DRP enables the user to set certain inventory control parameters (like a safety stock) and calculate the time-phased inventory requirements. This process is also commonly referred to as Distribution Resource Planning.
  22. Which of the following is NOT an important role of a warehouse?

    A. Service
    B. Assembly
    C. Product Mixing
    D. Transportation consolidation
    B. Assembly
    (this multiple choice question has been scrambled)
  23. Explanation: Warehouses serve three important roles 1. Transportation consolidation 2. Product mixing 3. Service
  24. Each of the following are a part of the marketing strategy 4p's EXCEPT:

    A. Packaging
    B. Product
    C. Price
    D. Place
    A. Packaging

    Explanation: The marketing 4p's are
    1. Product
    2. Price
    3. Promotion
    4. Place
    (this multiple choice question has been scrambled)
  25. Demand ManagementDemand over the past 5 months has been 86, 90, 95, 92, and 89 units respectively. Using a three-month moving average, calculate the forecast for the 6th month.

    A. 82
    B. 91
    C. 92
    D. 90
    C. 92

    Explanation: Remember to take only the last three months in your formula. Any months before the last three months we can discard for this problem. (95+92+87)/3=92
    (this multiple choice question has been scrambled)
  26. Which of the following best describe VMI?

    A. Vendor Integration through EDI
    B. Supplier takes full responsibility for maintaining an agreed inventory of the material
    C. Visual card to pull new inventory
    D. Vertical alignment of inventory
    B. Supplier takes full responsibility for maintaining an agreed inventory of the material

    Explanation: VMI stands for Vendor Managed Inventory and is a method of a vendor to take responsibility of the inventory levels for a customer, usually at the point of use.
    (this multiple choice question has been scrambled)
  27. Annual Sales = $26 million
    Average General and administrative expenses = $6 million Average inventory = $2 million
    Annual Cost of goods sold = $12 million

    The inventory turnover Ratio equals:

    A. 6
    B. 2
    C. 3
    D. 2.166
    A. 6

    Explanation: Inventory Turns = annual cost of goods sold/ average inventory in dollars. 12M/2M=6 Inventory Turns
    (this multiple choice question has been scrambled)
  28. In the Theory of Constraints (TOC) the rope refers to

    A. pull of materials out of the bottleneck
    B. Holding a queue of input materials before the bottleneck
    C. scheduling materials into the bottleneck at a constant pace
    D. the scheduled shipping of a product from a plant
    A. pull of materials out of the bottleneck

    Explanation: Theory of constraints drum-buffer rope, the rope refers to the "pull" of the materials through the constraint. Drum is to schedule the materials into the constraint at a constant pace and buffer is to hold a queue before the constraint so the constraint will always have materials available.
    (this multiple choice question has been scrambled)
  29. A Routing file contains the following information
    I. Unit Run time
    II. Manufacturing Lead Time
    III. Set-up time
    IV. Work Center

    A. II & IV Only
    B. I, III, & IV Only
    C. III & IV Only
    D. I, II, & III Only
    B. I, III, & IV Only

    Explanation: Information on a routing file includes
    1. Operation number
    2. Work Center
    3. Description
    4. Setup
    5 Unit Run
    6. Labor Grade
    Manufacturing lead time is part of the item master file, not the routing file
    (this multiple choice question has been scrambled)
  30. A work center consists of three machines and is operated eight hours per day for five days a week. Historically. The utilization has been 95% and the efficiency 90%. What is the rated capacity?

    A. 34.2
    B. 140.3
    C. 114
    D. 102.6
    D. 102.6

    Explanation: Available time = 3*8*5 = 120 hours a week Rated capacity = 120* .95*.9 = 102.6
    (this multiple choice question has been scrambled)
  31. The least important factor involved in selecting a site for a factory is the

    A. Current location of management
    B. Skilled Labor
    C. Land availability
    D. Near to suppliers
    A. Current location of management

    Explanation: Many factors are involved in selecting a site for a factory, but the least important factor is where management currently lives
    (this multiple choice question has been scrambled)

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