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CPIM-8.0 Latest Exam Price | CPIM-8.0 Reliable Exam Price

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02:25 02/07/24


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APICS Certified in Planning and Inventory Management (CPIM 8.0) Sample Questions (Q111-Q116):

NEW QUESTION # 111
A disadvantage of a capacity-lagging strategy may be:

* A. risk of excess capacity if demand does not reach forecast.
* B. lack of capacity to fully meet demand.
* C. a high cost of inventories.
* D. planned capital investments occur earlier than needed.
Answer: B

Explanation:
A capacity-lagging strategy is a conservative approach to capacity planning that involves adding capacity only when the firm is operating at full capacity because of an increase in demand1. This strategy can help minimize costs and reduce the risk of excess capacity, but it can also lead to a disadvantage of not being able to fully meet customer demand if it rises quickly2. This can result in lost customers, revenue, and market share, as well as lower customer satisfaction and loyalty3. References:
*Lag Capacity Strategy, Lag Demand Strategy - UniversalTeacher.com
*Capacity Planning Strategies: Types, Examples, Pros And Cons - Toggl
*3 types of capacity planning strategies (with examples) - Xola

NEW QUESTION # 112
A company with stable demand that uses exponential smoothing to forecast demand would typically use a:

* A. low beta value.
* B. high beta value.
* C. low alpha value.
* D. high alpha value.
Answer: C

Explanation:
Exponential smoothing is a forecasting method that uses weighted averages of past observations to predict future values. The weights decrease exponentially as the observations get older, giving more importance to recent data. Exponential smoothing can be applied to data with different patterns, such as level, trend, or seasonality. Depending on the pattern, different exponential smoothing models and parameters are used. Two common parameters are alpha () and beta ():
Alpha is the smoothing parameter for the level component of the forecast. The level component is the average or typical value of the data. Alpha can range from 0 to 1, not inclusive. A low alpha value gives more weight to older observations and produces a smoother forecast. A high alpha value gives more weight to recent observations and produces a more responsive forecast.
Beta is the smoothing parameter for the trend component of the forecast. The trend component is the direction and rate of change of the data over time. Beta can also range from 0 to 1, notinclusive. A low beta value gives more weight to older trends and produces a smoother forecast. A high beta value gives more weight to recent trends and produces a more responsive forecast.
A company with stable demand that uses exponential smoothing to forecast demand would typically use a low alpha value. Stable demand means that the data do not have significant variations, fluctuations, or patterns over time. In this case, a simple exponential smoothing model that estimates only the level component is sufficient. A low alpha value would produce a smooth and stable forecast that reflects the average demand level and does not react to random noise or outliers. The other options are not correct, as they either refer to a different parameter (beta) or a different scenario (high alpha value):
A low beta value would be used for data with a trend component, but a stable demand does not have a trend component. A low beta value would produce a smooth and stable trend forecast that does not react to random noise or outliers.
A high beta value would also be used for data with a trend component, but a stable demand does not have a trend component. A high beta value would produce a responsive and dynamic trend forecast that reflects the recent changes in the data.
A high alpha value would be used for data with a high variability or uncertainty, but a stable demand does not have these characteristics. A high alpha value would produce a responsive and dynamic level forecast that reflects the recent changes in the data. References:

Exponential Smoothing for Time Series Forecasting
What is alpha and beta in exponential smoothing?
Value of alpha and beta in Holt's exponential smoothing method

NEW QUESTION # 113
In a lean environment, the batch-size decision for planning "A" items would be done by:

* A. min-max system.
* B. least total cost.
* C. periodic order quantity.
* D. lot-for-lot (L4L).
Answer: D

Explanation:
In a lean environment, the batch-size decision for planning "A" items would be done by lot-for-lot (L4L). L4L is an inventory management technique that orders exactly the quantity needed to meet the demand for each period. This minimizes the work in process, cycle time, and inventory holding costs. L4L is consistent with the lean principles of reducing batch sizes, eliminating waste, and responding to customer pull. The other options are not suitable for a lean environment, as they either order more than the demand (least total cost, min-max system, periodic order quantity) or incur more setup costs (least total cost, periodic order quantity).
References:
*
*Optimize Production Batch Sizes
*How to determine your Lot Size - Part 1

NEW QUESTION # 114
Price negotiation is most appropriate when purchasing which of the following product categories?

* A. Commodities
* B. Standard products
* C. Made-to-order (MTO) items
* D. Items of small value
Answer: A

Explanation:
Price negotiation is most appropriate when purchasing commodities. Commodities are products or materials that are standardized, widely available, and have low differentiation. Examples of commodities include metals, grains, oil, gas, etc. Price negotiation is a process of bargaining with the supplier to obtain the best possible price for the purchase. Price negotiation is suitable for commodities because they have high price volatility, meaning that their prices fluctuate frequently and unpredictably due to changes in supply and demand, market conditions, and other factors. Price negotiation can help the buyer to take advantage of the price fluctuations and secure a lower price or a better contract term with the supplier. Price negotiation can also help the buyer to reduce the total cost of ownership, which includes not only the purchase price but also the costs of transportation, storage, quality, and risk12. References: 1 How to negotiate price: negotiation tips for salespeople 3 2 CPIM Exam References - Association for Supply Chain Management 1

NEW QUESTION # 115
In a make-to-stock (MTS) environment, the master production schedule (MPS) Is usually a schedule of which of the following types of items?

* A. Phantom items
* B. Finished goods items
* C. Component/subassembly items
* D. Raw material 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. References:
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 # 116
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