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APICS CPIM-8.0 Exam
Certified in Planning and Inventory Management (CPIM 8.0) (Page 4 )

Updated On: 1-Feb-2026
Page 4 of 31
PDF with 150 Questions

The time spent In queue by a specific manufacturing job is determined by which of the following factors related to the order?

  1. Lot size
  2. Priority
  3. Setup time
  4. Run time

Answer(s): B

Explanation:

The time spent in queue by a specific manufacturing job is determined by the priority of the order. Priority is the relative importance or urgency of an order compared to other orders in the system. Priority can be assigned based on various criteria, such as due date, customer preference, profitability, or first-come-first-served. Priority determines the order in which jobs are processed at each workstation and affects the waiting time and flow time of each job. Higher priority jobs have shorter waiting times and lower priority jobs have longer waiting times. Priority can be used as a tool to manage the trade-offs between customer service, capacity utilization, and inventory levels.


Reference:

Managing Supply Chain Operations, Chapter 7: Scheduling and Sequencing, Section 7.2: Priority Rules
CPIM Exam Content Manual, Module 6: Detailed Schedules, Section 6.2: Scheduling and Sequencing, Subsection 6.2.2: Priority Rules



What is the main negative effect of changing the due dates of open orders?

  1. The schedule information becomes inaccurate.
  2. The customer service level decreases.
  3. It leads to "nervousness" in the schedule.
  4. The schedule does not support demand.

Answer(s): C

Explanation:

Changing the due dates of open orders is a common practice to cope with demand fluctuations, capacity constraints, or material shortages. However, it can have a negative effect on the stability and reliability of the schedule, causing "nervousness". Nervousness is the tendency of the schedule to change frequently and significantly due to minor changes in inputs or parameters. Nervousness can result in increased costs, reduced efficiency, lower quality, and lower customer satisfaction. To avoid or reduce nervousness, some strategies are: using time fences, freezing the schedule, aggregating the demand, and using safety stock or safety time.


Reference:

CPIM Exam Content Manual, Module 5: Detailed Schedules, Section 5.1: Capacity Management, p. Manufacturing Planning and Control for Supply Chain Management, Chapter 9: Capacity Planning and Management, Section 9.3: Capacity Planning and Scheduling, pp. 222-223



In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:

  1. reduced forecast variability.
  2. fewer customer order changes.
  3. fewer customer defections.
  4. earlier Identification of shifts In customer preferences.

Answer(s): D

Explanation:

In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is earlier identification of shifts in customer preferences.

CRM is a strategy that focuses on building and maintaining long-term relationships with customers by understanding their needs, preferences, and behaviors. CRM enables organizations to anticipate and respond to changes in customer demand, improve customer satisfaction and loyalty, and increase profitability and competitiveness. CRM also helps organizations to segment and target customers based on their value and potential, and to customize products and services accordingly. CRM involves the use of various tools and techniques, such as data collection and analysis, communication channels, feedback mechanisms, and loyalty programs.


Reference:

Managing Supply Chain Operations, Chapter 4: Customer Relationship Management, Section 4.1:
Introduction to Customer Relationship Management
CPIM Exam Content Manual, Module 1: Supply Chains and Strategy, Section 1.2: Customer Relationship Management, Subsection 1.2.1: Customer Relationship Management Concepts



How would a master production schedule (MPS) be used In an assemble-to-order (ATO) manufacturing environment?

  1. The MPS is used to plan subassemblies and components; end items are only scheduled when a customer order is received.
  2. Subassemblies are scheduled in the MPS when the customer order is received, and production can start.
  3. Typically, the MPS is not used in companies using an ATO manufacturing strategy.
  4. Often In an ATO environment, the MPS is created once a year and only revised if a product is discontinued.

Answer(s): A

Explanation:

In an assemble-to-order (ATO) manufacturing environment, the MPS is used to plan subassemblies and components that have long lead times or high demand variability. These subassemblies and components are produced and stocked in anticipation of customer orders. The end items are only scheduled in the MPS when a customer order is received, and they are assembled from the available subassemblies and components. This reduces the lead time and inventory for the end items, while increasing the flexibility and responsiveness to customer needs. ATO is a hybrid strategy between make-to-stock (MTS) and make-to-order (MTO).


Reference:

CPIM Exam Content Manual, Module 4: Supply, Section 4.1: Master Production Schedule, p. 14 Manufacturing Planning and Control for Supply Chain Management, Chapter 8: Master Production Scheduling, Section 8.3: Master Production Scheduling in Different Environments, pp. 191-192



It takes an average of 3 hours to set up a model and 1 hour to run, but depending on the complexity of the models, the setup time can be significantly different. Last week. 2 modelers were working on different projects. Each worked 40 hours. One modeler finished 5 models a day, and the other finished 1 model a day.
What was the demonstrated capacity last week?

  1. 25 models
  2. 15 models
  3. 10 models
  4. 30 models

Answer(s): C

Explanation:

The demonstrated capacity last week is the total number of models completed by both modelers in 40 hours. One modeler finished 5 models a day, which means 25 models in a week. The other modeler finished 1 model a day, which means 5 models in a week. Therefore, the demonstrated capacity last week is 25 + 5 = 30 models. However, this is not one of the options given. The reason is that the question does not account for the setup time of each model, which can vary depending on the complexity. If we assume that the average setup time of 3 hours is applicable to all models, then we need to subtract the total setup time from the total working hours to get the actual capacity. The total setup time for 30 models is 30 x 3 = 90 hours. The total working hours for both modelers is 2 x 40 = 80 hours. Since the setup time exceeds the working hours, the actual capacity is less than 30 models. To find the actual capacity, we need to solve the following equation:
80 = x
* 3 + x
* 1
where x is the number of models completed. Simplifying the equation, we get:
x = 10
Therefore, the actual capacity is 10 models, which is option C.


Reference:

Managing Supply Chain Operations, Chapter 6: Capacity Management, Section 6.1: Capacity Concepts, Subsection 6.1.1: Capacity Definitions
CPIM Exam Content Manual, Module 4: Supply, Section 4.2: Capacity Management, Subsection 4.2.1:
Capacity Concepts



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