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APICS Certified in Planning and Inventory Management (CPIM 8.0) Sample Questions (Q107-Q112):

NEW QUESTION # 107
An advantage of applying ABC classification to a firm's replenishment items is that:

A. it provides better order quantities than the economic order quantity (EOQ).
B. it distinguishes independent demand from dependent demand.
C. it allows planners to focus on critical products.
D. it allows the firm to utilize time-phased order point (TPOP).

Answer: C

Explanation:
ABC classification is a method of inventory management that categorizes items based on their annual consumption value, which is the product of the annual demand and the unit cost. Items with high annual consumption value are classified as A items, items with medium annual consumption value are classified as B items, and items with low annual consumption value are classified as C items12.
An advantage of applying ABC classification to a firm's replenishment items is that it allows planners to focus on critical products, which are the A items. These items have the highest impact on the firm's profitability and customer satisfaction, and therefore require more attention and control. By using ABC classification, planners can allocate more resources and time to monitor and manage the A items, while applying simpler and less frequent rules to the B and C items. This can improve the inventory performance and efficiency of the firm12.
The other options are not correct because:
*A. it distinguishes independent demand from dependent demand. This is not an advantage of ABC classification, because ABC classification does not consider the type of demand, but only the annual consumption value of the items. Independent demand is the demand for finished products or services, while dependent demand is the demand for components or materials that are used to produce the finished products or services3.
*C. it provides better order quantities than the economic order quantity (EOQ). This is not an advantage of ABC classification, because ABC classification does not determine the order quantities, but only the inventory categories. EOQ is a formula that calculates the optimal order quantity that minimizes the total inventory costs, such as ordering costs and holding costs.
*D. it allows the firm to utilize time-phased order point (TPOP). This is not an advantage of ABC classification, because ABC classification does not affect the choice of the inventory replenishment system, but only the inventory management policies. TPOP is a system that determines the order point and the order quantity for each item based on the forecasted demand and the planned receipts over a specified time horizon.
References := 1 ABC Inventory Analysis & Management | NetSuite1 2 What Is ABC Inventory Classification?
| Business.org2 3 Independent Demand vs Dependent Demand: What's the Difference? Economic Order Quantity (EOQ) - Overview, Formula, and Example Time-Phased Order Point (TPOP) - an overview | ScienceDirect Topics

NEW QUESTION # 108
An organization currently has a network with 55,000 unique Internet Protocol (IP) addresses in their private Internet Protocol version 4 (IPv4) network range and has acquired another organization and must integrate their 25,000 endpoints with the existing, flat network topology.
If subnetting is not implemented, which network class is implied for the organization's resulting private network segment?

A. A
B. E
C. B
D. C

Answer: A

NEW QUESTION # 109
Given the bill of material (BOM) information below and independent requirements of 10 pieces (pcs) per week of Component A and 20 pieces (pcs) per week of Component B, what is the weekly gross requirement of component F?

A. 0
B. 1
C. 2
D. 3

Answer: C

Explanation:
Given the bill of material (BOM) information, we can calculate the weekly gross requirement of component F by considering the independent requirements of Component A and B. For Component A, there is no direct requirement for Component F. For Component B, which has an independent requirement of 20 pcs per week, each requires 4 pcs of Component F according to its BOM. So, the total weekly gross requirement for Component F due to Component B is 204 = 80 pcs. Additionally, each piece of Component A requires 2 pieces of Component C according to its BOM and has an independent requirement of 10 pcs per week; hence requiring a total of 20 pieces of component C per week. Each piece of component C in turn requires 4 pieces of component F according to its BOM; hence requiring a total weekly gross requirement for component F due to component A is: 204 =80 pcs. Adding both gives us a total weekly gross requirement for component F as:
80+80=160pcs. References:
*CPIM Part 1 Learning System, Module 4: Inventory Management, Section 4.2: Inventory Management Policies and Objectives
*CPIM Part 2 Learning System, Module 1: Supply Chain Strategy, Section 1.3: Capacity Management

NEW QUESTION # 110
A security analyst has been asked to build a data retention policy for a hospital. What is the FIRST action that needs to be performed in building this policy?

A. Determine local requirements.
B. Designate a person of authority.
C. Ensure that all data has been classified.
D. Determine federal requirements.

Answer: C

NEW QUESTION # 111
An organization has decided to give decommissioned computers to a school in a developing country. The company data handling policy prohibits the storage of confidential and sensitive data. What would be the BEST technique to use to avoid data remanence, and to minimize the operational burden for the inheriting school?

A. Encrypting the hard disk drive of the computers
B. Degaussing the hard disk drive of the computers
C. Removing and physically destroying the hard disk drive of the computers
D. Overwriting the hard disk drive of the computers

Answer: D

NEW QUESTION # 112
......

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