APICS CPIM-Part-2 Certified in Planning and Inventory Management(Part 2) Online Training

Question #21

The demonstrated capacity of equipment in a process flow is $1,200 per day. Due to a malfunction in a feeder line, utilization

of the equipment is reduced by 25% on Day 6. If the efficiency remains unchanged at 110%, what would the output be on Day 6?

A . $300
B . $330
C . $900
D . $990

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Question #22

An outlier has been identified in the demand data for an item. The most appropriate next step would be to:

A . set the forecast value to the outlier limit.
B . screen the outlier for manual review.
C . advance the forecast model in time, without smoothing.
D . increase the length of the forecast time period.

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Correct Answer: B
B

Explanation:

An outlier is a data point that falls outside of the expected range of the data, i.e., it is an unusually large or small data point1. Outliers can have a significant adverse impact on the forecasts, as they can skew the data distribution and distort the statistical analysis2. Therefore, it is important to detect and remove outliers from the demand data before generating forecasts.

One of the techniques that can be used to detect outliers is to use the standard deviation of the data, or the equivalent z-score, to determine the outlier limit3. For example, one approach is to set the lower limit to three standard deviations below the mean, and the upper limit to three standard deviations above the mean. Any data point that falls outside this range is detected as an outlier.

However, detecting outliers is not enough. The most appropriate next step would be to screen the outlier for manual review. This means that the detected outlier should be examined by a human expert to determine whether it is a true outlier or not, and whether it should be corrected or not4. This is because not all outliers are erroneous or irrelevant. Some outliers may be valid observations that reflect real changes in demand, such as seasonal peaks, promotional effects, or market trends. In such cases, correcting or removing the outliers may lead to inaccurate or biased forecasts.

Therefore, screening the outlier for manual review can help verify the cause and validity of the outlier, and decide on the best course of action. Some of the possible actions are:

Correcting the outlier: replacing the outlier with a more typical value based on historical data or expert judgment. This can smooth out the data and reduce the noise.

Separating the demand streams: splitting the data into two or more series based on different factors that influence demand, such as product type, customer segment, or distribution channel. This can isolate the outliers and allow different forecasting methods to be applied to each series.

Adjusting the forecasting model: modifying the parameters or assumptions of the forecasting model to account for the outliers, such as using a different smoothing factor, trend component, or error term. This can improve the fit and accuracy of the model.

Reference: 1: Outlier Definition 1 2: How to Forecast Data Containing Outliers 2 3: How to Detect Outliers in Machine Learning C 4 Methods for Outlier Detection 1 4: How Outlier Detection and Correction Works 4: How to Understand What is an Outlier in Forecasting 3

Question #23

Safety capacity in lean environments is:

A . unnecessary waste to be reduced in the next kaizen event.
B . where take time is greater than cycle time.
C . provided by adding an additional shift.
D . employing additional workers in peak periods.

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Correct Answer: B
B

Explanation:

Safety capacity in lean environments is where take time is greater than cycle time. Take time is the average time between the start of production of one unit and the start of production of the next unit1. Cycle time is the average time it takes to complete one unit of a product or service2. Safety capacity is the amount of capacity that is reserved to deal with unexpected events or fluctuations in demand or supply3.

In lean environments, the goal is to minimize waste and maximize value by producing only what the customer wants, when the customer wants it, and in the exact amount4. This means that the production system should be synchronized with the customer demand, and the take time should match the cycle time. However, in reality, there may be variations or uncertainties in the demand or supply, such as changes in customer preferences, seasonal patterns, quality issues, equipment breakdowns, or supplier delays. These variations or uncertainties can cause disruptions or imbalances in the production system, leading to stockouts, overproduction, waiting, defects, or rework5.

To cope with these variations or uncertainties, lean environments may use safety capacity as a buffer or contingency plan. Safety capacity is where take time is greater than cycle time, meaning that the production system has some extra capacity to produce more than what the customer currently demands. This extra capacity can be used to absorb the variations or uncertainties and maintain a smooth and stable production flow6. However, safety capacity should not be confused with excess capacity, which is where take time is much greater than cycle time, meaning that the production system has a lot of idle or underutilized resources. Excess capacity is a waste that should be eliminated or reduced in lean environments7.

Therefore, safety capacity in lean environments is where take time is greater than cycle time.

Reference: 1: Take Time Definition 1 2: Cycle Time Definition 2 3: Safety Capacity Definition 3 4: Lean Manufacturing Definition 4 5: The Seven Wastes of Lean 5 6: Capacity Planning Tools 6 7: Excess Capacity

Question #24

A life cycle assessment (LCA) would be used to determine:

A . the length of a long-term agreement.
B . how an item should be scheduled.
C . environmental aspects and impacts.
D . if risk pooling would reduce inventory investment.

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Question #25

Risk pooling would work best for items with:

A . low demand uncertainty and short lead times.
B . low demand uncertainty and long lead times.
C . high demand uncertainty and short lead times.
D . high demand uncertainty and long lead times.

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Question #26

To facilitate transportation efficiency and inventory management, companies frequently use:

A . automated storage/retrieval systems (AS/RS).
B . small lot sizes.
C . standardized containers.
D . contract carriers.

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Question #27

A statistical safety stock calculation would be appropriate for:

A . components used in multiple end items.
B . new products at time of introduction.
C . end items with stable demand.
D . supply-constrained raw materials.

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Question #28

A part is sold as a service part, and it is also used as a component in another part.

Which of the following statements about the planning for this part is true?

A . Its low-level code is zero.
B . The material requirements for the part will be understated.
C . The service part demand can be included in the gross requirements.
D . It shouldn’t have any safety stock.

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Question #29

The benefits of standardized work include:

A . consistent cycle time.
B . more innovation.
C . less finished goods inventory.
D . shorter takt time.

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Question #30

Long lead-time items with stable demand would best be supported by a supply chain:

A . using a pull system.
B . linked through an enterprise resources planning (ERP) system.
C . designed to be responsive.
D . positioning inventory close to the consumer.

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