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| Section | Objectives |
|---|---|
| CPIM Part 2: Strategic Planning and Execution | - Execution and Control of Operations - Strategic Management of Resources - Detailed Scheduling and Planning - Master Planning of Resources - Continuous Improvement and Quality Management |
| CPIM Part 1: Supply Chain Fundamentals | - Operations Planning - Supply Management Fundamentals - Supply Chain Basics - Demand Management |
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NEW QUESTION # 499
In which of the following circumstances is an organization MOST likely to report the accidental release of personal data to the European Union (EU) General Data Protection Regulation (GDPR) supervisory authority and affected users?
Answer: A
NEW QUESTION # 500
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
C$250,000$5 001,200,000 units
D$1 000.000$4 501 400.000 units
Answer: A
Explanation:
To maximize profit, the manufacturer should choose the machine that has the lowest total cost per unit of demand. The total cost per unit of demand is calculated by adding the fixed cost per unit of demand and the variable cost per unit. The fixed cost per unit of demand is obtained by dividing the fixed cost by the annual demand. The variable cost per unit is given in the table. The total cost per unit of demand for each machine is:
Machine A: 1,000,000100,000+6.00=6.10
Machine B: 1,000,000200,000+5.50=5.70
Machine C: 1,000,000250,000+5.00=5.25
Machine D: 1,000,0001,000,000+4.50=5.50
The lowest total cost per unit of demand is for Machine C, which is $5.25. Therefore, Machine C will maximize the profit for the manufacturer.
Reference:
Some possible references for this question are:
CPIM Part 1 Exam Content Manual, Version 8.0, Domain 3: Plan and Manage Supply, Section A: Plan and Manage Supply Chain Capacity, Topic 2: Capacity Planning Concepts, Subtopic b: Capacity planning methods, Page 30 CPIM Part 1 Learning System, Version 8.0, Module 3: Plan and Manage Supply, Section 3.2: Capacity Planning Concepts, Topic 3.2.2: Capacity Planning Methods, Subtopic 3.2.2.2: Cost-Volume Analysis, Pages 3-24 to 3-26 CPIM Part 1 Study Guide, Version 8.0, Module 3: Plan and Manage Supply, Section 3.2: Capacity Planning Concepts, Topic 3.2.2: Capacity Planning Methods, Subtopic 3.2.2.2: Cost-Volume Analysis, Pages 3-24 to 3-26
NEW QUESTION # 501
Given the following data, calculate the appropriate takt time:
Answer: B
Explanation:
Takt time is the rate at which a product should be produced to meet customer demand. It is calculated by dividing the available production time by the customer demand. In this case, the available production time is
10 hours per day, and the customer demand is 2,400 units per day. Converting 10 hours to minutes gives us
600 minutes of production time per day. So, takt time = 600 minutes / 2400 units = 0.25 minutes per unit.
However, this is not one of the answer choices, so we need to look for more information or context.
According to the CPIM Part 1 Study Guide, takt time is usually rounded up to the nearest whole number to allow for some buffer time and to simplify the calculation. Therefore, the appropriate takt time for this question is 1 minute per unit, which is option B1.
References := 1 CPIM Part 1 Study Guide, page 77
NEW QUESTION # 502
What activity is a useful element in the change process?
Answer: D
Explanation:
Creating short-term wins is a useful element in the change process because it helps to build momentum, motivate the team, and overcome resistance. Short-term wins are concrete achievements that demonstrate the benefits of the change and provide evidence that the efforts are paying off. They also help to create a sense of urgency and alignment among the stakeholders involved in the change process. Calculating a break-even point, performing a SWOT analysis, and developing key performance indicators (KPIs) are all important tools for planning and evaluating the change process, but they are not as effective as creating short-term wins in generating support and commitment for the change. References: Change Management: The Kotter Model, APICS CPIM 8 Planning and Inventory Management | ASCM
NEW QUESTION # 503
An advantage of applying ABC classification to a firm's replenishment items is that:
Answer: B
Explanation:
ABC classification is a method of inventory management that categorizes items based on their annual consumption value, which is the product of the annual demand and the unit cost. Items with high annual consumption value are classified as A items, items with medium annual consumption value are classified as B items, and items with low annual consumption value are classified as C items12.
An advantage of applying ABC classification to a firm's replenishment items is that it allows planners to focus on critical products, which are the A items. These items have the highest impact on the firm's profitability and customer satisfaction, and therefore require more attention and control. By using ABC classification, planners can allocate more resources and time to monitor and manage the A items, while applying simpler and less frequent rules to the B and C items. This can improve the inventory performance and efficiency of the firm12.
The other options are not correct because:
* A. it distinguishes independent demand from dependent demand. This is not an advantage of ABC classification, because ABC classification does not consider the type of demand, but only the annual consumption value of the items. Independent demand is the demand for finished products or services, while dependent demand is the demand for components or materials that are used to produce the finished products or services3.
* C. it provides better order quantities than the economic order quantity (EOQ). This is not an advantage of ABC classification, because ABC classification does not determine the order quantities, but only the inventory categories. EOQ is a formula that calculates the optimal order quantity that minimizes the total inventory costs, such as ordering costs and holding costs.
* D. it allows the firm to utilize time-phased order point (TPOP). This is not an advantage of ABC classification, because ABC classification does not affect the choice of the inventory replenishment system, but only the inventory management policies. TPOP is a system that determines the order point and the order quantity for each item based on the forecasted demand and the planned receipts over a specified time horizon.
NEW QUESTION # 504
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