When the discrete available-to-promise (ATP) method is used, the master production receipt quantity is committed to:
Answer(s): C
The discrete available-to-promise (ATP) method is a calculation based on the available-to-promise figure in the master schedule. For the first period, the ATP is the sum of the beginning inventory plus the MPS quantity minus backlog for all periods until the item is master scheduled again. For other periods, the quantity that is available for an item is based on the quantity available within an individual purchase. Therefore, the master production receipt quantity is committed to requests only for shipment before the next MPS receipt.
* 1: APICS CPIM Part 2 Exam Content Manual, Version 8.0, p. 29 * 2: NetSuite Applications Suite - Available to Promise Methods.
In which of the following phases of the product life cycle is product price most effective in influencing demand?
Answer(s): A
Product price is most effective in influencing demand in the introduction phase of the product life cycle, when the product is new and unfamiliar to the market. In this phase, customers are not aware of the product's benefits, features, or quality, and may be reluctant to try it. Therefore, a lower price can help attract customers and stimulate demand, as well as deter potential competitors from entering the market. A lower price can also help the product gain market share and establish a loyal customer base. As the product moves to the growth, maturity, and decline phases, price becomes less effective in influencing demand, as other factors, such as product differentiation, quality, promotion, and customer satisfaction, become more important.
* Product Life Cycle Explained: Stage and Examples* The 6 Stages of the Product Life Cycle [+Examples]* Product Life Cycle - Definition, Stages, Usage
A company that uses concurrent engineering is likely to experience which of the following outcomes in the first period of a product's life cycle?
Concurrent engineering is a method of designing and developing products in which the different stages run simultaneously, rather than consecutively. It decreases product development time and also the number of errors and rework. By involving all the relevant stakeholders, such as engineering, manufacturing, marketing, and purchasing, in the design process from the beginning, concurrent engineering reduces the need for product design changes later in the product life cycle.
* APICS CPIM Part 2 Exam Content Manual, p. 15* [APICS CPIM Learning System Version 8.0], Module 2, Section B, p. 2-17
The primary purpose for engaging in cycle count activities is to:
Answer(s): B
Cycle count is an inventory management technique that involves counting a subset of inventory items on a regular basis, usually based on some sampling criteria. The primary purpose of cycle count is to more frequently reconcile the actual on-hand and system on-hand for items, which helps to ensure inventory accuracy, identify and correct errors, and avoid stockouts or overstocking. Cycle count does not eliminate the need for a traditional physical inventory count, but it can reduce its frequency and disruption. Cycle count also does not smooth out the tasks of counting inventory throughout the fiscal year, but rather distributes them according to a predetermined schedule. Cycle count may indirectly improve material handling processes and reduce or eliminate errors, but this is not its primary purpose.
* What is cycle count in inventory management?* Inventory Cycle Counting 101: Best Practices & Benefits * Understanding The Cycle Count In Inventory Management * What is Inventory Cycle Counting?: A 2023 Guide* Cycle Count: Everything A Warehouse Manager Should Know * [CPIM Part 2 Exam Content Manual], p. 40
Which of the following inventory management techniques is most responsive to changes in demand levels?
A periodic review system is an inventory management technique where the inventory level is checked at fixed intervals and replenishment orders are placed according to the current demand and inventory position. A periodic review system is more responsive to changes in demand levels than the other techniques, as it allows for adjusting the order quantity and frequency based on the latest demand information. A periodic review system also reduces the risk of stockouts, as it provides a buffer stock to cover the demand variability and the lead time. A periodic review system is suitable for items that have low holding costs, high ordering costs, or unpredictable demand patterns.
Periodic Review System - Inventory Management - MBA Knowledge Base, InventoryManagement: How to Organize and Plan Effectively - G2
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