CPIM APICS Certified in Production and Inventory Management 4 — Questions and Answers
Question 1: In a capacity requirements planning (CRP) analysis, which factor converts planned order quantities into machine or labor hours?
- Bill of materials (BOM)
- Routing file (Correct answer)
- Inventory record file
- Work order backlog
Correct answer: Routing file
The routing file contains operation sequences, work centers, and standard hours per unit used to calculate load.
Question 2: Which supplier evaluation criterion focuses on the percentage of deliveries that arrive on or before the requested date?
- Quality defect rate
- On-time delivery performance (Correct answer)
- Total cost of ownership
- Lead time variability
Correct answer: On-time delivery performance
On-time delivery (OTD) rate measures the supplier's reliability in meeting requested delivery dates.
Question 3: What is the purpose of a 'fence' in master production scheduling?
- To separate finished goods from raw materials storage
- To define time periods within which changes to the MPS are restricted or require approval (Correct answer)
- To cap the maximum allowed safety stock
- To isolate customer orders from forecasts
Correct answer: To define time periods within which changes to the MPS are restricted or require approval
Demand and planning fences protect the schedule from disruptive short-term changes that would destabilize production.
Question 4: A product has a raw material cost of $50, direct labor of $20, and overhead of $30. What is its total standard cost?
- $70
- $80
- $100 (Correct answer)
- $150
Correct answer: $100
Total standard cost = raw material ($50) + direct labor ($20) + overhead ($30) = $100.
Question 5: Which type of waste in Lean manufacturing refers to producing more than customer demand requires?
- Motion
- Waiting
- Overproduction (Correct answer)
- Defects
Correct answer: Overproduction
Overproduction is considered the worst of the seven wastes because it masks other problems and consumes resources unnecessarily.
Question 6: In aggregate planning, which strategy adjusts production rates while keeping the workforce constant?
- Chase strategy
- Level strategy (Correct answer)
- Mixed strategy
- Subcontracting strategy
Correct answer: Level strategy
A level strategy maintains a steady output rate and workforce, using inventory or backorders to absorb demand changes.
Question 7: Which document provides a complete list of all components, subassemblies, and raw materials required to build one unit of a finished product?
- Master production schedule
- Bill of materials (BOM) (Correct answer)
- Routing file
- Work order traveler
Correct answer: Bill of materials (BOM)
The bill of materials (BOM) defines the parent-component relationships and quantities needed to produce the finished item.
CPIM APICS Certified in Production and Inventory Management 4
In a capacity requirements planning (CRP) analysis, which factor converts planned order quantities into machine or labor hours?