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Certified in Production and Inventory Management Questions 151–155 (page: 32)

Updated On: 9-Feb-2026

Poor product design can add cost to processing in the following ways EXCEPT:

  1. the product and its components may not be designed to be made using the most economical methods impossible.
  2. Parts may be designed so excessive material has to be removed
  3. Parts may be designed so operations are difficult
  4. None of these

Answer(s): D



Currently, there is a trend towards more specialization in manufacturing whereby a factory specializes in a narrow product mix for a niche market. Generally, focused factories are thought to be more effectively and economically than more complex factories, the reason being that:

  1. repetition and concentration in one area allow the workforce and management to gain the advantages of specialization.
  2. The focused factory may be a "factory within a factory," an area in an existing factory set aside to specialize in a narrow product mix
  3. specialization has the disadvantage of inflexibility
  4. All of these

Answer(s): A



Advantage/s of concurrent engineering is/are:

  1. Time to market is reduced
  2. Cost is reduced
  3. Better quality and lower total system cost
  4. All of these

Answer(s): D



A manufacturer has the alternative of making parts in-house or of buying them from an outside supplier. Reason/s to make In-house may be:

  1. Can produce for less cost than a supplier
  2. Uses specialized expertise of suppliers
  3. Provides known and competitive prices
  4. To utilize existing equipment to fullest extent

Answer(s): A,D



Benefit/s of supply chain simulation is/are:

  1. To help understand the overall supply chain processes and characteristics by graphics/animation
  2. To be able to capture system dynamics: using probability distribution, user can model unexpected events in certain areas and understand the impact of these events on the supply chain
  3. To minimize the risk of changes in planning process: by what-if simulation, user can test various alternatives before changing plan.
  4. All of these

Answer(s): D



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