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| Certification Vendor: | ASCM (Association for Supply Chain Management) |
|---|---|
| Exam Name: | Certified in Planning and Inventory Management (CPIM 8.0) |
| Exam Number: | CPIM-8.0 |
| Real Exam Qty: | 150 (120 scored + 30 pretest) |
| Exam Duration: | 210 minutes |
| Exam Format: | Multiple-choice questions |
| Available Languages: | English |
| Exam Price: | USD 495 (ASCM member) / USD 695 (non-member) |
| Passing Score: | 300 (on a scale of 200β350) |
| Certificate Validity Period: | 5 years |
| Related Certifications: | Certified in Planning and Inventory Management (CPIM) |
| Sample Questions: | APICS CPIM-8.0 Sample Questions |
| Exam Way: | Computer-based testing at Pearson VUE testing centers worldwide or online proctored exam. |
| Pre Condition: | No prerequisites required. Open to all candidates interested in supply chain planning and inventory management. |
| Official Syllabus URL: | https://www.ascm.org/learning-development/certifications-credentials/cpim/ |
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NEW QUESTION # 581
An advantage of applying ABC classification to a firm's replenishment items is that:
Answer: D
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.
References := 1 ABC Inventory Analysis & Management | NetSuite1 2 What Is ABC Inventory Classification? | Business.org2 3 Independent Demand vs Dependent Demand: What's the Difference?
Economic Order Quantity (EOQ) - Overview, Formula, and Example Time-Phased Order Point (TPOP) - an overview | ScienceDirect Topics
NEW QUESTION # 582
A healthcare organization's new cloud-based customer-facing application is constantly receiving security events from dubious sources. What BEST describes a security event that compromises the confidentiality, integrity, or availability of the application and data?
Answer: D
NEW QUESTION # 583
In a make-to-stock (MTS) environment, the master production schedule (MPS) Is usually a schedule of which of the following types of items?
Answer: B
Explanation:
In a make-to-stock (MTS) environment, the master production schedule (MPS) is usually a schedule of finished goods items that are ready to be sold to customers. Phantom items, component/subassembly items, and raw material items are not typically scheduled in the MPS, but rather in the material requirements planning (MRP) system, which is driven by the MPS. Reference:
CPIM 8.0 Exam Content Manual Preview, page 10, section 4.1.1
CPIM Part 1 Study Guide, page 66, section 4.1.1
CPIM Part 1 Learning System, Module 4, Lesson 1, Topic 1: Master Production Schedule
NEW QUESTION # 584
A planner has chosen to increase the order point for a raw material. Which of the following costs is most likely to increase?
Answer: A
Explanation:
The order point is the level of inventory that triggers a replenishment order. By increasing the order point, the planner is increasing the average inventory level, which in turn increases the carrying cost. Carrying cost is the cost of holding inventory, such as storage, insurance, obsolescence, and opportunity cost. Ordering cost, landed cost, and product cost are not directly affected by the order point12. References: What is Inventory Reorder Point in Inventory Management? - Deskera, Reorder Point Defined: Formula & How to Use | NetSuite
NEW QUESTION # 585
A life cycle assessment (LCA) would be used to determine:
Answer: A
Explanation:
A life cycle assessment (LCA) is a method of evaluating the environmental impacts of a product or service throughout its life cycle, from raw material extraction to disposal or recycling1. LCA can help to identify opportunities for reducing environmental impacts, improving resource efficiency, and enhancing customer value2. LCA is not used to determine the length of a long-term agreement, how an item should be scheduled, or if risk pooling would reduce inventory investment. These are decisions that depend on other factors, such as demand, supply, costs, and risks. References:
*CPIM Part 2 Study Guide, Chapter 2: Supply Chain Strategy, Section 2.3: Sustainability and Corporate Social Responsibility
*ILCD Handbook - General guide on LCA - Detailed guidance, Chapter 1: Introduction to LCA and LCT
NEW QUESTION # 586
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