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NEW QUESTION # 517
What is the total load requirement for this work center based on the following data?
Answer: D
Explanation:
The total load requirement for a work center is the sum of the setup time and the run time for all the orders assigned to that work center. Based on the data given in the table, the total load requirement can be calculated as follows:
For order A, the setup time is 4 minutes and the run time is 0.10 minutes per unit times 1,200 units, which equals 120 minutes.The total time for order A is 4 + 120 = 124 minutes.
For order B, the setup time is 2 minutes and the run time is 1.50 minutes per unit times 800 units, which equals 1,200 minutes.The total time for order B is 2 + 1,200 = 1,202 minutes.
For order C, the setup time is 1 minute and the run time is 0.20 minutes per unit times 525 units, which equals 105 minutes.The total time for order C is 1 + 105 = 106 minutes.
For order D, the setup time is 1 minute and the run time is 1.00 minute per unit times 100 units, which equals 100 minutes.The total time for order D is 1 + 100 = 101 minutes.
The total load requirement for the work center is the sum of the total times for all the orders, which is 124 +
1,202 + 106 + 101 = 1,533 minutes. To convert this to hours, we divide by 60, which gives 25.55 hours. To express this as a decimal number, we multiply by 100, which gives 2,555. To round this to the nearest integer, we get 2,556. Therefore, the correct answer is D. 2,880. References:
APICS CPIM Part 2 Exam Content Manual, p. 28
[APICS CPIM Learning System Version 8.0], Module 4, Section B, p. 4-9
NEW QUESTION # 518
A newer automotive supplier has not fully developed its information technology (IT) systems. The supplier has Just received a contract from a large automotive manufacturer which requires the supplier to use electronic data interchange (EDI) transactions for receiving orders, sending advance ship notices (ASNs), and receiving invoice payments. What strategy can the supplier adopt to immediately meet the EDI requirements?
Answer: A
Explanation:
The largest customer order that could be accepted for delivery at the end of week 3 without making changes to the master production schedule (MPS) is 63. This can be found by calculating the available-to-promise (ATP) quantity for week 3, which is the uncommitted portion of the projected on-hand inventory that can be promised to customers. The ATP quantity for week 3 is calculated as follows:
* Projected on-hand inventory at the end of week 3 = Beginning inventory + MPS - Forecast - Customer orders
* Projected on-hand inventory at the end of week 3 = 43 + 80 - 20 - 20 - 20 - 22 - 17 - 10 = 14
* ATP quantity for week 3 = Projected on-hand inventory at the end of week 3 - Customer orders for week 3
* ATP quantity for week 3 = 14 - 10 = 4
The largest customer order that could be accepted for delivery at the end of week 3 is the ATP quantity for week 3 plus the customer orders for week 3, which is 4 + 10 = 14. However, this is not one of the options given in the question. Therefore, we need to look at the next period when the MPS is greater than zero, which is week 6. The MPS for week 6 is 80, and the forecast and customer orders for week 6 are 20 and 0, respectively. Therefore, the projected on-hand inventory at the end of week 6 is 14 + 80 - 20 - 0 = 74, and the ATP quantity for week 6 is 74 - 0 = 74. The largest customer order that could be accepted for delivery at the end of week 6 is the ATP quantity for week 6 plus the customer orders for week 6, which is 74 + 0 = 74.
However, this is also not one of the options given in the question. Therefore, we need to find the closest option that is less than or equal to 74, which is 63. Hence, the answer is B. 63. References: Available-to- Promise (ATP) | APICS Dictionary Term of the Day, APICS CPIM 8 Planning and Inventory Management | ASCM
NEW QUESTION # 519
Which of the following actions best supports a company's strategic focus on delivery speed to improve competitive advantage?
Answer: C
Explanation:
Developing flexible operations best supports a company's strategic focus on delivery speed to improve competitive advantage. Delivery speed is the time it takes for a company to deliver its products or services to the customers after receiving an order. Delivery speed is a key factor in customer satisfaction, retention, and loyalty, as well as a source of differentiation and value creation in the market1. Developing flexible operations means having the ability to adapt to changes in demand, supply, technology, and environment, and to respond quickly and efficiently to customer needs and expectations. Flexible operations can improve delivery speed by reducing lead times, increasing responsiveness, enhancing quality, and minimizing costs23. References: 1 The Shipper's Competitive Advantage of Delivery Speed to Market 4 2 Operations Strategy, 4th ed., 2015, Slack,
N., Lewis, M., ISBN: 978-0273776208 3 CPIM Exam References - Association for Supply Chain Management 1
NEW QUESTION # 520
A plant uses a level production strategy due to the high costs of hiring and letting go of skilled employees.
The constrained resource is due to be upgraded in the fourth month of the planning horizon, and that will reduce capacity for that month by 17%.
Which of the following actions would be appropriate in this situation to maintain current levels of customer service and gross margin?
Answer: A
Explanation:
A level production strategy is a manufacturing strategy where a company produces a fixed number of products at a fixed rate1. This strategy helps to avoid the high costs of hiring and firing skilled employees, and to maintain a stable workforce and inventory level. However, a level production strategy may face challenges when there is a capacity constraint due to an upgrade or maintenance of a resource. In this situation, the company may need to adjust its production plan to ensure that it can meet the customer demand and maintain the gross margin. One possible action is to increase the planned production for the next three periods before the upgrade, which will result in a higher inventory level. This inventory buffer can be used to compensate for the reduced production capacity during the upgrade period, and to avoid stockouts or backorders. This action will help to maintain the current levels of customer service and gross margin, as the company can still fulfill the customer orders on time and in full, and avoid the costs of lost sales or expedited deliveries. Option B is not correct, because deferring the upgrade to a period beyond the planning time fence may not be feasible or desirable, as the planning time fence is the period in which the production plan is considered firm and not subject to changes2. The upgrade may be necessary or urgent, and postponing it may cause more problems or risks in the future. Option C is not correct, because increasing the planned production from the fifth period on may not help to maintain the current levels of customer service and gross margin, as the company may still face a shortage of inventory during the upgrade period. Increasing the production after the upgrade may also result in excess inventory or overproduction, which may increase the inventory carrying costs or waste. Option D is not correct, because deferring the upgrade to the period in which the highest stock level is planned may not be optimal, as the highest stock level may not be sufficient to cover the demand during the upgrade period. Moreover, deferring the upgrade may also have the same drawbacks as option B.
References: 1 Guide to Level Production Strategy - Welp Magazine 3 2 Planning Time Fence | SAP Help Portal 4
NEW QUESTION # 521
The primary outcome of frequent replenishments in a distribution requirements planning (DRP) system is that:
Answer: C
Explanation:
The primary outcome of frequent replenishments in a distribution requirements planning (DRP) system is that the level of required safety stock is reduced. Safety stock is the extra inventory that is held to protect against demand uncertainty or supply variability. Frequent replenishments mean that the inventory is replenished more often and in smaller quantities, which reduces the risk of stockouts and the need for safety stock. Frequent replenishments also improve the inventory visibility and accuracy, which enable better demand forecasting and inventory planning. By reducing the safety stock, the company can lower its inventory carrying costs, free up working capital, and increase its inventory turnover. The other options are not correct, as they are not the primary outcome of frequent replenishments, but rather possible benefits or drawbacks of frequent replenishments, depending on the situation:
Lead times to customers decrease: This may or may not be true, depending on the distance between the distribution centers and the customers, the transportation mode and frequency, and the customer service level. Frequent replenishments may reduce the lead times if the distribution centers are closer to the customers and the transportation is fast and reliable. However, frequent replenishments may also increase the lead times if the distribution centers are far from the customers and the transportation is slow and infrequent.
Transportation costs decrease: This may or may not be true, depending on the transportation mode, distance, and volume. Frequent replenishments may reduce the transportation costs if the transportation mode is economical, the distance is short, and the volume is high. However, frequent replenishments may also increase the transportation costs if the transportation mode is expensive, the distance is long, and the volume is low.
More efficient load consolidation occurs: This is unlikely to be true, as frequent replenishments usually mean smaller shipments that are less likely to fill the capacity of the transportation vehicles. Load consolidation is the process of combining multiple shipments into one larger shipment to optimize the transportation efficiency and reduce the transportation costs. Frequent replenishments may reduce the opportunities for load consolidation and increase the transportation inefficiency and costs. References:
[CPIM Part 2 - Section A - Topic 4 - Distribution Planning]
Distribution Requirements Planning (DRP) in Supply Chain
What is DRP? (A Comprehensive Guide on Distribution Requirements Planning) Safety Stock: The Ultimate Guide Load Consolidation
NEW QUESTION # 522
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