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NEW QUESTION # 18
Which of the following factors typically would distort a sales forecast that is based solely on shipment history?
Answer: D
Explanation:
A sales forecast that is based solely on shipment history assumes that the past demand patterns will continue in the future. However, this assumption may not be valid if there are factors that affect the customer demand that are not captured by the shipment history. For example, customer demands may change due to seasonality, promotions, new product introductions, competitor actions, economic conditions, or other external influences.
These factors may distort the sales forecast that is based solely on shipment history and cause it to be inaccurate or unreliable. The other options are not factors that typically distort a sales forecast that is based solely on shipment history, as they do not directly affect the customer demand. Material shortages, labor rate changes, and currency exchange rates may affect the supply side of the business, but they do not necessarily reflect the customer preferences or needs. References:
CPIM Part 2 Exam Content Manual, p. 29
Sales Forecast: Complete Guide to Sales Forecasting in [2023]
The Complete Guide to Building a Sales Forecast | Salesforce
NEW QUESTION # 19
Which of the following represents the level of confidence that software is free from intentional an accidental vulnerabilities?
Answer: A
NEW QUESTION # 20
A low-cost provider strategy works best when which of the following conditions are met?
Answer: C
Explanation:
A low-cost provider strategy is a business strategy where a company aims to become the most cost-efficient player in its industry, often by producing goods or providing services at a lower cost than its competitors. The overall goal is to increase market share or achieve higher profitability. The low-cost leader in an industry often sets the price that other companies have to match or beat to stay competitive12.
A low-cost provider strategy works best when buyers are more price sensitive, meaning they are more likely to switch to cheaper alternatives if the price of a product or service increases. This condition creates a strong demand for low-priced products or services, and gives the low-cost leader a competitive advantage over rivals who have higher costs and prices. Buyers are more price sensitive when34:
*The product or service is standardized or undifferentiated, and there are few switching costs.
*The product or service represents a significant portion of the buyer's budget or income.
*The product or service has low quality, performance, or image attributes that limit the buyer's satisfaction or loyalty.
*The product or service is not crucial to the buyer's well-being or enjoyment.
The other options are not correct because:
*A. Price competition among rivals is similar. This condition does not favor a low-cost provider strategy, because it implies that the industry is already highly competitive and there is little room for differentiation. A low-cost leader would have to lower its prices even further to gain an edge over rivals, which could erode its profitability and sustainability.
*C. There are many ways to achieve product differentiation. This condition does not favor a low-cost provider strategy, because it implies that the industry is diverse and dynamic, and there are many opportunities for innovation and value creation. A low-cost leader would have to invest more in research and development, marketing, and customer service to keep up with the changing customer preferences and expectations, which could increase its costs and reduce its efficiency.
*D. There are few industry newcomers. This condition does not favor a low-cost provider strategy, because it implies that the industry is mature and stable, and there are few threats from new entrants. A low-cost leader would have to rely on its existing customer base and market share, which could limit its growth potential and expose it to the risk of obsolescence.
References := 1 Low-cost leadership strategy: Explained with examples2 2 Low-Cost Producer: Definition, Strategies, Examples - Investopedia4 3 Low Cost Strategy - Definition, Factors & Example - MBA Skool5 4 Generating Advantage - Strategic Management - Open Educational Resources1
NEW QUESTION # 21
Labor3 people
Work hours10 hours per day
Days4 days per week
Meetings with work area employees1/2 hour per day
Work area efficiency85%
Given the information above, what is the weekly theoretical capacity of this work area in hours?
Answer: D
Explanation:
The weekly theoretical capacity of this work area in hours is calculated by multiplying the number of people, the work hours per day, the days per week, and the work area efficiency, and subtracting the time spent on meetings. The formula is:
Capacity=(3×10×4×0.85)#(3×0.5×4)
Capacity=(102)#(6)
Capacity=96
The closest answer to this value is 120, which is option D. References :=
* CPIM Exam Content Manual, Module 5: Detailed Schedules, Section 5.1: Capacity Management, p. 18
* Manufacturing Planning and Control for Supply Chain Management, Chapter 9: Capacity Planning and Management, Section 9.2: Capacity Planning Concepts, pp. 217-218
NEW QUESTION # 22
Which of the following systems would be the most cost-efficient for inventory management of a low value item?
Answer: A
Explanation:
Periodic review is a system that determines the order quantity and reorder point for an item based on the inventory position at fixed intervals. This system is suitable for inventory management of low value items, as it reduces the ordering and holding costs, simplifies the ordering process, and allows for grouping orders. Therefore, option C is correct. Option A is incorrect because order point is a system that triggers an order when the inventory level falls below a predetermined level. This system requires continuous monitoring of inventory levels, which may not be cost-efficient for low value items. Option B is incorrect because material requirements planning (MRP) is a system that calculates the requirements for components and materials based on the demand for end items. This system is more appropriate for items with dependent demand, rather than independent demand. Option D is incorrect because economic order quantity (EOQ) is a system that determines the optimal order quantity that minimizes the total ordering and holding costs. This system assumes constant and known demand and lead time, which may not be realistic for some items. Reference: CPIM Part 2 Exam Content Manual, Version 8.0, Section E: Plan and Manage Inventory, Subsection E.2: Inventory Management Methods, p. 53.
NEW QUESTION # 23
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