CPIM Strategic Management of Resources

Question 1

Which manufacturing strategy builds products to a standard design and holds finished goods inventory to fill orders immediately?

Accepted Answer

Make-to-stock (MTS)

Answer

Make-to-order (MTO)

Answer

Engineer-to-order (ETO)

Answer

Assemble-to-order (ATO)

Question 2

In an 'assemble-to-order' (ATO) environment, the decoupling point is at:

Accepted Answer

Subassembly or component level

Answer

Raw material storage

Answer

Finished goods warehouse

Answer

Customer delivery location

Question 3

What is the 'product-process matrix' concept used for in manufacturing strategy?

Accepted Answer

Aligning the appropriate production process structure with the product's volume and variety characteristics

Answer

Mapping products to supplier capabilities

Answer

Calculating the total cost of ownership for capital equipment

Answer

Designing quality inspection plans for each product

Question 4

Which concept describes the phenomenon where small demand fluctuations at the retail level are amplified into large swings upstream in the supply chain?

Accepted Answer

Bullwhip effect

Answer

Demand sensing

Answer

Safety stock amplification

Answer

Lead time variability

Question 5

A 'make-or-buy' decision in manufacturing strategy should consider which primary factors?

Accepted Answer

Cost, capacity, core competency, and supply chain risk

Answer

Employee satisfaction and overtime costs only

Answer

Marketing strategy and brand positioning exclusively

Answer

Government regulations and export licensing only

Question 6

What is 'postponement' as a supply chain strategy?

Accepted Answer

Delaying product differentiation as late as possible in the supply chain to maintain flexibility

Answer

Delaying payment to suppliers to improve cash flow

Answer

Postponing capital investment until demand is proven

Answer

Deferring maintenance to reduce short-term costs