CPIM Practice Questions

A plant uses a level production strategy due to the high costs of hiring and letting go of skilled employees. The constrained resource is due to be upgraded in the fourth month of the planning horizon, and that will reduce capacity for that month by 17%.Which of the following actions would be appropriate in this situation to maintain current levels of customer service and gross margin? A.Increase planned production for the next three periods.B.Defer the upgrade to a period beyond the planning time fence.C.Increase planned production from the fifth period on.D.Defer the upgrade to the period in which the highest stock level is planned.

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? A.Fewer product design changesB.An increase in obsolete inventoryC.More accurate forecastingD.Conflicts between purchasing and engineering

One of the benefits of integrating a poka-yoke into the production process is that it can be used to: A.facilitate mixed-model scheduling.B.prevent defects.C.improve machine utilization.D.enable one-piece flow.

How would a master production schedule (MPS) be used in an assemble-to-order (ATO) manufacturing environment? A.The MPS is used to plan subassemblies and components; end items are only scheduled when a customer order is received.B.Subassemblies are scheduled in the MPS when the customer order is received, and production can start.C.Typically, the MPS is not used in companies using an ATO manufacturing strategy.D.Often in an ATO environment, the MPS is created once a year and only revised if a product is discontinued.

Price negotiation is most appropriate when purchasing which of the following product categories? A.CommoditiesB.Standard productsC.Items of small valueD.Made-to-order (MTO) items