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| Section | Objectives |
|---|---|
| Topic 1: CPIM Part 2: Strategic Planning and Execution | - Strategic Management of Resources - Continuous Improvement and Quality Management - Detailed Scheduling and Planning - Master Planning of Resources - Execution and Control of Operations |
| Topic 2: CPIM Part 1: Supply Chain Fundamentals | - Supply Management Fundamentals - Operations Planning - Supply Chain Basics - Demand Management |
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NEW QUESTION # 82
Reducing distribution network inventory days of supply will have which of the following Impacts?
Answer: B
Explanation:
Inventory days of supply (IDS) is a measure of how long it takes for a company to sell its entire inventory.
Reducing IDS means that the company is selling its inventory faster, which increases the inventory turnover ratio. Inventory turnover ratio is the number of times a company sells and replaces its inventory in a given period. A higher inventory turnover ratio indicates that the company is more efficient in managing its inventory and generating sales. Reducing IDS also means that the company is reducing the time between paying its suppliers and receiving payment from its customers, which reduces the cash-to-cash cycle time.
Cash-to-cash cycle time is the number of days a company's cash is tied up in its operations. A lower cash-to-cash cycle time indicates that the company is more efficient in converting its inventory into cash and improving its liquidity. Therefore, reducing distribution network inventory days of supply will have the impact of increasing turnovers and reducing cash-to-cash cycle time. References:
Gartner's Top Actions for Supply Chain Inventory Reduction
Inventory Days Of Supply | Supply Chain KPI Library | Profit.co
Maximizing Efficiency: Understanding Inventory Days of Supply in - oboloo
NEW QUESTION # 83
Which of the following methods most likely Introduces a temporary variance between the inventory balance and the inventory record?
Answer: D
Explanation:
Backflushing is a method of inventory accounting that deducts the materials used in production from the inventory record after the completion of a product or batch. This introduces a temporary variance between the actual inventory balance and the inventory record, which should be reconciled periodically. Inventory write-off, cycle count, and kanban do not cause such a variance. Reference: [CPIM Part 1 Study Guide], Chapter 5: Inventory Management, Section 5.3: Inventory Record Accuracy, p. 5-15.
NEW QUESTION # 84
An organization currently has a network with 55,000 unique Internet Protocol (IP) addresses in their private Internet Protocol version 4 (IPv4) network range and has acquired another organization and must integrate their 25,000 endpoints with the existing, flat network topology. If subnetting is not implemented, which network class is implied for the organization's resulting private network segment?
Answer: B
NEW QUESTION # 85
An information security auditor is creating an audit program to assess endpoint security controls for portable storage media movement. Which type of control will MOST likely be part of the program?
Answer: B
NEW QUESTION # 86
An effective approach to projecting requirements for materials with long lead times Includes which of the following options?
Answer: C
Explanation:
An effective approach to projecting requirements for materials with long lead times is to initiate a multilevel master schedule. A multilevel master schedule is a detailed plan that shows the quantities and timing of the end items and all of their components at each level of the bill of materials (BOM). By using a multilevel master schedule, a planner can determine the requirements for materials with long lead times and place orders in advance to avoid shortages or delays. A phantom bill of materials (BOM) is a temporary grouping of components that are used in the production of a parent item, but do not exist as a separate item in inventory. A phantom BOM is not an effective approach to projecting requirements for materials with long lead times, as it does not reflect the actual demand for the components. Increasing the level of safety stock is a way of mitigating the risk of uncertainty in demand or supply, but it is not an effective approach to projecting requirements for materials with long lead times, as it increases the inventory carrying costs and does not address the root cause of the problem. Decreasing the planning horizon is the opposite of an effective approach to projecting requirements for materials with long lead times, as it reduces the visibility and accuracy of the forecast and increases the likelihood of stockouts or excess inventory. References:
* CPIM Part 2 Learning System, Module 1: Supply Chain Strategy, Section 1.4: Master Scheduling
* CPIM Part 2 Learning System, Module 3: Supply, Section 3.2: Material Requirements Planning
NEW QUESTION # 87
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