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Certified in Production and Inventory Management Questions 131–135 (page: 28)

Updated On: 9-Feb-2026

What is the demonstrated weekly capacity of a line based upon the following data? Efficiency = 80%, Utilization = 100%, Available weekly hours = 1,000. Last 5 weeks output (in standard hours), 1000, 1,100, 1,200, 900, 1,300

  1. 800
  2. 1,000
  3. 1,100
  4. 1,500

Answer(s): C



What will be the impact on inventory turns if average inventory levels are cut in half and all other operating conditions remain the same?

  1. Turns will double
  2. Turns will remain constant
  3. Turns will be cut in half
  4. Turns will increase by the square root of 2

Answer(s): A



Which of the following best describes sole sourcing?

  1. Multiple potential suppliers, one is chosen to be the only supplier for an organization
  2. Multiple potential suppliers, 2-3 are chosen to be the only suppliers for an organization
  3. One supplier exists and is utilized
  4. One supplier exists, but is not utilized

Answer(s): C



Using non-cumulative methods, what is the ATP in period 1?

  1. 88
  2. 100
  3. 261
  4. 300

Answer(s): A



What is the updated forecast, utilizing exponential smoothing, given the following data? Old Forecast = 100, actual demand = 80, alpha = 0.2, tracking signal = 0.9

  1. 80
  2. 96
  3. 100
  4. 104

Answer(s): B



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