Free CPIM-SMR Exam Braindumps (page: 14)

Page 13 of 60

Service level cost what as the service level increases?

  1. decreases steadily
  2. increases steadily
  3. increases exponentially
  4. decreases exponentially

Answer(s): C

Explanation:

Service level cost increases exponentially as the service level increases.



Using the following information calculate the payback period Purchase Price = $50,000
Life span of new machine = 7 years
Annual earnings before depreciation and tax = 20,000

  1. 2.5 Years
  2. .4 Years
  3. 4.5 Years
  4. 17.5 Years

Answer(s): A

Explanation:

Payback Period = Initial cash investment/ annual net cash income=50000/20000= 2.5 years



Using value innovation logic, assets and capabilities should what?

  1. not be constrained by what it already has. It must ask.
    What would we do differently if starting over?
  2. Removes all equipment and starts over
  3. target the mass of capabilities and lets the rest go
  4. leverage its existing assets and capabilities

Answer(s): A

Explanation:

Using value innovation logic, assets and capabilities should not be constrained by what it already has. It must ask.
What would we do differently if starting over



Which of the following are approaches to cutting over to a new technology?
I) Big Bang Approach
II) Step Approach
III) Parallel

  1. II & III Only
  2. I, II, & III
  3. I & III Only
  4. I & Il Only

Answer(s): B

Explanation:

All of the following are approaches to cutting over to a new technology?
1. Big Bang Approach
2. Step Approach
3. Parallel






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