CPIM-MPR Certified in Production and Inventory Management - Master Planning of Resources

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Question 1

Which of the following considerations is valid when selecting a mode of transportation?

  • A. Financial viability of the supplier
  • B. Transit time consistency
  • C. Ownership of equipment
  • D. Age of equipment

Answer : B

Question 2

Which of the following is typically an output of the master scheduling process?

  • A. Sales forecasts
  • B. Resource requirements plans
  • C. Interplant demands
  • D. Projected available balances

Answer : D

Question 3

The primary purpose of a pre-sales and operations planning meeting between
representatives from different business functions is to:

  • A. reconcile differences in recommendations.
  • B. discuss changes in demand for end items.
  • C. prepare recommendations for the demand planning phase.
  • D. prepare recommendations for the supply planning phase.

Answer : A

Question 4

Which of the following tradeoffs should be considered to improve the performance of a
distribution network?

  • A. Reduce cost but improve customer service by using full truckload or carload shipments
  • B. Increase inventory turns but decrease costs by shipping more frequently
  • C. Improve profit but decrease inventory by not scrapping obsolete product
  • D. Improve fill rate but decrease inventory turns by adding safety stock

Answer : D

Question 5

Which of the following considerations is most important when selecting forecasting

  • A. Cost of data storage
  • B. Ability to forecast over multiple planning horizons
  • C. Ability to forecast capacity requirements
  • D. Computational speed

Answer : B

Question 6

The question below is based on the following information:

Which of the following distributions would be the central warehouse allocation of 120 units
of inventory to district warehouses A, B, and C if the equal run-out method were used?

  • A. 20 units to A, 53 units to B, 47 units to C
  • B. 20 units to A, 60 units to B, 40 units to C
  • C. 20 units to A, 80 units to B, 20 units to C
  • D. 100 units to A, 0 units to B, 20 units to C

Answer : C

Question 7

The following question is based on the following information:

The master production schedule quantity that should be placed in Period 7 is:

  • A. 00.
  • B. 10.
  • C. 13.
  • D. 20.

Answer : D

Question 8

In a capacity-constrained situation, which of the following actions is best to take if
marketing wants to increase production of a master schedule item?

  • A. Increase production of the item, but do not make any other changes.
  • B. Increase production of the item, and decrease production of another item.
  • C. Increase production of the item, and change the production plan.
  • D. If the item is within the demand time fence, let the computer make the change automatically.

Answer : B

Question 9

An intensive distribution channel strategy would be most appropriate for which of the
following types of product?

  • A. Special tools
  • B. Capital equipment
  • C. Designer clothing
  • D. Carbonated beverages

Answer : D

Question 10

A tailor shop is shifting its main business from assemble-to-order to make-to-order. The
customer order decoupling point will shift:

  • A. from raw material to WIP.
  • B. from WIP to raw material.
  • C. from finished goods to WIP.
  • D. from WIP to suppliers.

Answer : B

Question 11

The primary outputs of the pre-sales and operations planning (S&OP) meeting are:

  • A. the recommendations and agenda for the executive S&OP meeting.
  • B. a statistical forecast and field sales worksheet.
  • C. a capacity-constraints analysis and second-pass spreadsheets.
  • D. decisions about and authorization of the plan.

Answer : A

Question 12

Which of the following factors typically has the largest effect on the schedule developed by
an advanced production scheduling (APS) system?

  • A. Amount of past due work
  • B. Performance measures used
  • C. Precision of the capacity data
  • D. Priorities of the master schedule items

Answer : D

Question 13

When the overall distribution requirements planning system is structured to achieve a high
level of customer service, the outcome generally will be:

  • A. lower inventory levels and lower total cost.
  • B. higher inventory levels and higher total cost.
  • C. lower inventory levels and higher total cost.
  • D. higher inventory levels and lower total cost.

Answer : B

Question 14

Which of the following inputs to the demand planning phase of sales and operations
planning typically is most important for a product line that is made to customer order?

  • A. An analysis of past forecast errors
  • B. Information about planned pricing actions
  • C. Sales force input about customer plans
  • D. Statistical information about historical sales

Answer : C

Question 15

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

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