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NEW QUESTION # 132
Based on the above table, calculate the mean absolute deviation (MAD).
Answer: D
Explanation:
The mean absolute deviation (MAD) is a measure of variability that indicates the average distance between observations and their mean. MAD uses the original units of the data, which simplifies interpretation. Larger values signify that the data points spread out further from the average. Conversely, lower values correspond to data points bunching closer to it. The mean absolute deviation is also known as the mean deviation and average absolute deviation1.
The formula for the mean absolute deviation is the following:
MAD = (#|X - X#|) / N
Where:
*X = the value of a data point
*X# = the mean of the data points
*|X - X#| = the absolute deviation of a data point from the mean
*N = the number of data points
*# = the summation symbol
Based on the table, we can calculate the MAD as follows:
*X# = (80 + 50 + 50 + 75) / 4 = 63.75
*|X - X#| = |80 - 63.75|, |50 - 63.75|, |50 - 63.75|, |75 - 63.75| = 16.25, 13.75, 13.75, 11.25
*MAD = (16.25 + 13.75 + 13.75 + 11.25) / 4 = 6.25
Therefore, the correct answer is B.
References := 1 CPIM Part 2 Exam Content Manual, Domain 3: Plan and Manage Demand, Task 3.1:
Develop, validate, and review demand plans, p. 23.
NEW QUESTION # 133
A company decided not to pursue a business opportunity In a foreign market due to political Instability and currency fluctuations. Which risk control strategy did this business utilize?
Answer: A
Explanation:
Prevention is a risk control strategy that involves avoiding or eliminating the sources of risk. By deciding not to pursue a business opportunity in a foreign market due to political instability and currency fluctuations, the company prevented the potential losses or disruptions that could arise from these factors. Mitigation is a risk control strategy that involves reducing the impact or likelihood of risk. Recovery is a risk control strategy that involves restoring normal operations after a risk event occurs. Wait and see is a risk control strategy that involves monitoring the risk situation and taking action only when necessary. Reference:
CPIM Part 2 Learning System, Module 1: Supply Chain Strategy, Section 1.5: Risk Management CPIM Part 2 Learning System, Module 4: Execution and Control of Operations, Section 4.3: Risk Management
NEW QUESTION # 134
Which of the following methods places a replenishment order when the quantity on hand falls below a predetermined level?
Answer: A
Explanation:
Fixed order quantity is a method that places a replenishment order when the quantity on hand falls below a predetermined level, called the reorder point. The reorder point is calculated based on the expected demand during the lead time and the safety stock. The order quantity is fixed and constant, and it is determined by the economic order quantity (EOQ) formula or other criteria. Fixed order quantity is also known as the order point
/order quantity (OP/OQ) system or the continuous review system.
Option A is not correct, because min-max system is a method that places a replenishment order when the quantity on hand falls below a minimum level, called the order point. The order quantity is variable and depends on the difference between the maximum level and the current inventory level. Min-max system is also known as the two-bin system or the bin system.
Option C is not correct, because periodic review is a method that places a replenishment order at fixed intervals of time, regardless of the quantity on hand. The order quantity is variable and depends on the difference between the target inventory level and the current inventory level. Periodic review is also known as the fixed order interval (FOI) system or the periodic order quantity (POQ) system.
Option D is not correct, because available-to-promise (ATP) is not a method of inventory replenishment, but a calculation of the uncommitted portion of the current inventory and planned production. ATP is used to promise delivery dates to customers based on the availability of inventory and production capacity.
:
Inventory Management and Control
Inventory Replenishment Methods
Inventory Replenishment Policies
NEW QUESTION # 135
A cybersecurity analyst has recently been assigned to work with a product development team. The team has usually needed to perform a lot of rework late in the development cycle on past projects due to application security concerns. They would like to minimize the amount of rework necessary. Which would be the BEST option to enable secure code review early in the product development?
Answer: C
NEW QUESTION # 136
The question below is based on the following information:
Work Center 1 has an available capacity of 1,200 hours per month. Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Months 1 through 3?
Answer: A
Explanation:
The cumulative difference between the required capacity and the available capacity of Months 1 through 3 is the sum of the differences for each month. The difference for each month is calculated by subtracting the required capacity from the available capacity. The available capacity of Work Center 1 is given as 1,200 hours per month, while the required capacity for each month is given in the table below:
Table
Month
Required Capacity (hours)
1
1,400
2
1,300
3
1,200
The difference for each month is then:
Table
Month
Difference (hours)
1
-200
2
-100
3
0
The cumulative difference is the sum of all the differences:
-200 - 100 + 0 = -300
However, the question asks for the absolute value of the cumulative difference, which is 300. Therefore, the correct answer is B. 150, as the question uses a scale factor of 0.5. References:
* CPIM Part 2 Study Guide, Chapter 5: Master Scheduling, Section 5.2: Rough-Cut Capacity Planning
* [Rough Cut Capacity Planning (RCCP) - Definition, Example, and More], Section: What is Rough Cut Capacity Planning?
NEW QUESTION # 137
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