To facilitate transportation efficiency and inventory management, companies frequently use:
Answer(s): C
Standardized containers are containers that have uniform dimensions and specifications, such as pallets, crates, boxes, etc. Standardized containers can facilitate transportation efficiency and inventory management by reducing the handling time, increasing the loading capacity, improving the space utilization, and simplifying the packaging and labeling processes. Standardized containers can also enable the use of automated storage/retrieval systems (AS/RS) and other technologies that require consistent dimensions and weights of the items.
CPIM Part 2 Exam Content Manual, Domain 7: Plan and Manage Distribution, Section 7.1: Distribution Network Design, p. 38.
A statistical safety stock calculation would be appropriate for:
A statistical safety stock calculation is a method to determine the optimal amount of safety stock based on the demand variability, the lead time variability, and the desired service level. A statistical safety stock calculation would be appropriate for end items with stable demand, because these items have a predictable demand pattern and a low coefficient of variation. For items with unstable or unpredictable demand, such as components used in multiple end items, new products at time of introduction, or supply-constrained raw materials, a statistical safety stock calculation may not be accurate or reliable, and other methods such as judgmental or simulation-based approaches may be preferred.
CPIM Part 2 Exam Content Manual, Domain 5: Plan and Manage Inventory, Section 5.4: Inventory Management Techniques, p. 29.
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 part that is sold as a service part and also used as a component in another part is called a dual- sourced item. A dual-sourced item has two sources of demand: the external demand from the customers who buy the service part, and the internal demand from the parent part that uses the component. The planning for a dual-sourced item should include both sources of demand in the gross requirements, so that the net requirements can be calculated correctly. The service part demand can be included in the gross requirements by using a planning bill of material, which is a special bill of material that shows the relationship between a parent item and its service parts. A planning bill of material allows the system to explode the service part demand to the component level and generate planned orders for both the service part and the component. The other statements about the planning for this part are false. Its low-level code is not zero, because it is not an independent item. It has a higher low-level code than its parent item, because it is a component of another item. The material requirements for the part will not be understated, if both sources of demand are included in the gross requirements. It should have some safety stock, to protect against demand and supply uncertainties.
CPIM Part 2 Exam Content Manual, Domain 4: Plan and Manage Supply, Section 4.2: Material Requirements Planning (MRP), p. 22-23.
The benefits of standardized work include:
Answer(s): A
Standardized work is a method of organizing work processes to improve efficiency, quality, and safety1. One of the benefits of standardized work is consistent cycle time, which is the time it takes to complete a task or a process. By standardizing the work sequence, the takt time, and the standard inventory, standardized work reduces the variability and unpredictability of the work flow, and ensures that each task or process is performed in a consistent and optimal manner2. Consistent cycle time can lead to other benefits, such as improved customer satisfaction, reduced waste, increased productivity, and enhanced quality3.
Standardized Work: What Is It and Where Is It Used? - TWI Institute What is Standard Work: Benefits & Applications | SafetyCulture Standard Work: The Foundation for Kaizen - Lean Smarts
Long lead-time items with stable demand would best be supported by a supply chain:
Answer(s): D
Long lead-time items are items that take a long time to procure, produce, or deliver. Stable demand means that the demand for these items is predictable and does not fluctuate much over time. A supply chain that supports long lead-time items with stable demand would best be designed to position inventory close to the consumer, because this would reduce the delivery time and improve the customer service level. Positioning inventory close to the consumer also reduces the transportation costs and risks associated with long-distance shipments. A supply chain that uses a pull system, which is based on actual customer orders rather than forecasts, may not be suitable for long lead-time items, because it may not be able to meet the customer demand in a timely manner. A supply chain that is linked through an enterprise resources planning (ERP) system, which is a software system that integrates various business functions and processes, may improve the visibility and coordination of the supply chain, but it does not necessarily reduce the lead time or position inventory close to the consumer. A supply chain that is designed to be responsive, which means that it can quickly adapt to changes in demand or other variables, may not be necessary for long lead- time items with stable demand, because these items have low demand uncertainty and variability.
Inventory Positioning | Supply Chain Resource Cooperative Push System vs. Pull System: Adopting A Hybrid Approach To MRP What Is Inventory Positioning in Supply Chain Management?
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