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

APICS CPIM-Part-2 Online Training

The questions for CPIM-Part-2 were last updated at Feb 19,2025.

Exam Code: CPIM-Part-2
Exam Name: Certified in Planning and Inventory Management(Part 2)
Certification Provider: APICS
Latest update: Feb 19,2025

Question #51

Substituting capital equipment in place of direct labor can be economically justified for which of the following scenarios?

A . Volumes are forecasted to increase
B . Material prices are forecasted to increase
C . Implementing a pull system in production
D . Functional layouts are being utilized

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Correct Answer: A
A

Explanation:

Substituting capital equipment in place of direct labor can be economically justified for the scenario where volumes are forecasted to increase. This is because capital equipment can provide higher productivity, efficiency, and quality than direct labor, especially when the demand for the product or service is high or growing. Capital equipment can also reduce the labor costs, such as wages, benefits, training, and turnover, that are associated with direct labor12. Therefore, investing in capital equipment can lower the unit cost and increase the profit margin of the product or service, as well as improve the customer satisfaction and loyalty.

The other scenarios are not likely to justify substituting capital equipment in place of direct labor, because they are either irrelevant or ineffective. Material prices are forecasted to increase (B) is a factor that affects the cost of inputs, not outputs. Substituting capital equipment in place of direct labor may not reduce the material costs, unless the capital equipment can use less or cheaper materials than direct labor. Implementing a pull system in production © is a method of managing inventory and production based on actual customer demand, rather than forecasts. Substituting capital equipment in place of direct labor may not facilitate the implementation of a pull system, unless the capital equipment can provide more flexibility and responsiveness than direct labor. Functional layouts are being utilized (D) is a way of arranging the production facilities according to the type of operation or function performed. Substituting capital equipment in place of direct labor may not improve the performance or efficiency of a functional layout, unless the capital equipment can reduce the setup time or transportation cost between different functions.

Reference: Make-or-Buy Decision – Definition & Examples | Marketing Tutor

Make-or-Buy Decision – Overview, How It Works, Triggers

Make or Buy Decision – Definition & Examples | Marketing Tutor

Make or Buy Decision – What Is It, Examples, Factors, Advantages

Question #52

Which of the following is the fundamental difference between finite loading and other capacity planning approaches?

A . It is highly dependent on advanced computer software to function effectively.
B . It is only managed by shop floor supervisors.
C . It can use historical information to drive decision-making processes.
D . It considers adjustments to plans based on planned capacity utilization.

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Question #53

A company with stable demand that uses exponential smoothing to forecast demand would typically use a:

A . low alpha value.
B . low beta value.
C . high beta value.
D . high alpha value.

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Question #54

Which of the following conditions is required for an effective single-sourcing relationship?

A . Demand for the customer’s products must be stable.
B . The supplier must offer the lowest price per unit.
C . The organizations must be mutually dependent.
D . The organizations must be located close to each other.

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Question #55

A company has prioritized customers A, B, and C, filling orders in that sequence.

What are the impacts to customer service levels for customers B and C?

A . 100% service levels for B and C
B . Customer B has higher service level
C . Customer C has higher service level
D . Customer B and C have same service level

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Previous Questions

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

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

APICS CPIM-Part-2 Online Training

The questions for CPIM-Part-2 were last updated at Feb 19,2025.

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