Free APICS CPIM-8.0 Practice Exam with Questions & Answers | Set: 7

A Fourth-Party Logistics (4PL) provider assumes broader roles than a traditional third-party logistics (3PL) provider. It is not only responsible for the physical movement of goods but also for managing the supply chain as a whole, including coordination between the client and multiple logistics service providers.

“Companies that not only take on the responsibility of the physical movement of goods between a supplier and a customer but also take more of the supply chain service requirements are called a fourth-party logistics company.”

— Source: CPIM SMR Study Guide – CPIM_SMR_en.pdf, Question 125

The demand management function brings qualitative insights like market intelligence, promotions, and competitor actions that are not part of statistical forecasts. These are integrated during S&OP reviews to align demand and supply effectively.

“Demand management supplements forecast data with inputs not captured in historical forecasting models.”

— CPIM SMR Module – Sales & Operations Planning Role of Demand Management

 The labor efficiency variance is the difference between the standard labor hours allowed for the actual output and the actual labor hours used, multiplied by the standard labor rate. In this case, the standard labor hours allowed for 100 pieces are 0.5 * 100 = 50 hours. The actual labor hours used are 48 hours. The standard labor rate is $10 per hour. Therefore, the labor efficiency variance = (50 - 48) * $10 = $20 favorable. This means that the actual labor hours used were less than the standard labor hours allowed, which indicates a higher labor efficiency12 References: 1: CPIM Part 2 - Section B - Module 2 - Session 2 - Variance Analysis 2: CPIM Part 2 - Section B - Module 2 - Session 3 - Variance Analysis Example

Available-to-promise (ATP) is the uncommitted portion of a company’s inventory and planned production maintained in the master schedule to support customer-order promising. ATP is calculated by subtracting the customer orders and forecast from the projected on-hand inventory. The projected on-hand inventory is calculated by adding the beginning inventory and the master production schedule (MPS) and subtracting the customer orders. The largest customer order that could be accepted for delivery at the end of week 3 without making changes to the MPS is the ATP at the end of week 3. To calculate the ATP, we need to fill in the projected on-hand inventory for each week using the given information:

Table

Week

Forecast

Customer Orders

MPS

Projected On-Hand Inventory

ATP

1

20

22

0

43 + 0 - 22 = 21

21 - 20 = 1

2

20

17

0

21 + 0 - 17 = 4

4 - 20 = -16

3

20

10

80

4 + 80 - 10 = 74

74 - 20 = 54

The ATP at the end of week 3 is 54, which means that the company can promise 54 units of inventory to customers without changing the MPS. However, the question asks for the largest customer order that could be accepted, which means that we need to consider the existing customer orders as well. The customer orders for week 3 are 10, which means that the company has already committed 10 units of inventory to customers. Therefore, the largest customer order that could be accepted for delivery at the end of week 3 is 54 + 10 = 64 units. However, this is not one of the options given in the question. The closest option that is less than or equal to 64 is 61, which is option C12 References: 1: CPIM Part 1 - Section A - Module 1 - Session 4 - Master Scheduling 2: CPIM Part 1 - Section A - Module 1 - Session 5 - Available to Promise

 Management should support investments in new process technologies that align with the strategic objectives of the organization and provide a sustainable competitive advantage in the market. New process technologies may involve changes in existing systems, procedures, and skills, but these changes should be justified by the potential benefits and risks of the investment. Therefore, option D is correct. Option A is incorrect because requiring minimal changes in existing systems, procedures, and skills is not a sufficient criterion for investing in new process technologies. Option B is incorrect because relying on the recommendations of technical experts and equipment suppliers may not reflect the best interests of the organization or its customers. Option C is incorrect because providing significant cost-reduction opportunities for the company’s current products may not be enough to justify the investment in new process technologies, especially if the products have a short life cycle or low demand. References: CPIM Part 2 Exam Content Manual, Version 8.0, Section H: Quality, Continuous Improvement, and Technology, Subsection H.3: Technology, p. 85.