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| Section | Objectives |
|---|---|
| CPIM Part 2: Strategic Planning and Execution | - Continuous Improvement and Quality Management - Master Planning of Resources - Execution and Control of Operations - Detailed Scheduling and Planning - Strategic Management of Resources |
| CPIM Part 1: Supply Chain Fundamentals | - Supply Management Fundamentals - Demand Management - Supply Chain Basics - Operations Planning |
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NEW QUESTION # 431
If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will:
Answer: A
Explanation:
Increasing finished goods inventory investment will improve service levels by reducing the probability of stockouts. However, the relationship between inventory and service level is not linear, but rather asymptotic.
This means that as inventory increases, service level increases at a decreasing rate, approaching a maximum value. Therefore, option C is correct. Option A is incorrect because service level will not remain the same when inventory changes. Option B is incorrect because service level will not increase in direct proportion to inventory. Option D is incorrect because service level will not increase at an increasing rate as inventory increases. References: CPIM Part 2 Exam Content Manual, Version 8.0, Section A: Demand Management, Subsection A.3: Demand Management and Customer Service, p. 10.
NEW QUESTION # 432
An organizations is developing a new software package for a financial institution. What is the FIRST step when modeling threats to this new software package?
Answer: B
NEW QUESTION # 433
The primary benefit that results from the cross-training of employees is:
Answer: B
Explanation:
Cross-training employees is the process of training employees for skills and job roles they weren't initially hired for. This allows them to switch between different tasks and roles when needed, which increases the flexibility and adaptability of the workforce. Cross-training also enhances the problem-solving, communication, and collaboration skills of the employees, but the primary benefit is improved flexibility12 Reference: 1: 9 Major Benefits of Cross-Training Employees Effectively 2: Employee cross-training: 8 benefits you can't afford to miss
NEW QUESTION # 434
Which of the following methods is most often used to manage inventory planning variability across the supply chain?
Answer: C
Explanation:
Risk pooling reduces inventory variability by aggregating demand across multiple locations or products. This strategy lowers safety stock requirements while maintaining service levels. It is widely used in inventory planning to counter variability due to uncertain demand patterns across the supply chain.
"Risk pooling is most effective in reducing inventory and managing variability because demand uncertainties across regions can offset each other when aggregated."
- APICS Dictionary, 16th edition; also referenced in MRP material on inventory strategies
NEW QUESTION # 435
An example of an assignable cause of variation in process performance is:
Answer: C
Explanation:
An assignable cause of variation is a source of variation that is intermittent, not predictable, and identifiable.
It is also called a special cause of variation. An assignable cause of variation affects the process performance in an unexpected and non-random way, and it can be eliminated or controlled by finding and correcting the specific cause1. An example of an assignable cause of variation in process performance is incorrect setup of a machine by the operator. This means that the operator did not follow the standard procedure or specification for setting up the machine, which may result in defective or nonconforming products or materials. This cause of variation can be identified and corrected by checking the setup instructions, training the operator, or implementing a setup verification system23. References: 1 Assignable Cause - isixsigma.com 4 2 Process Capability Analysis - an overview | ScienceDirect Topics 5 3 CPIM Exam References - Association for Supply Chain Management 1
NEW QUESTION # 436
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