Score Higher on Verified CPIM-Part-2 | Certified in Planning and Inventory Management(Part 2) Exam Questions with Answers

Nervousness is a term that describes the instability or variability of a production schedule due to frequent changes in demand, supply, or capacity. Nervousness can cause disruption, inefficiency, and waste in the production system, as well as lower customer service and satisfaction. Changing the due dates of open orders is a main cause of nervousness in the schedule, as it affects the priority and sequence of the production orders, and may require rescheduling or replanning of the resources and activities. Changing the due dates of open orders may be necessary to accommodate urgent or unexpected customer requests, but it also increases the complexity and uncertainty of the production process.

The other options are not the main negative effects of changing the due dates of open orders. The schedule information becomes inaccurate is not a negative effect, but a consequence of changing the due dates of open orders. The schedule information reflects the planned input/output of the production system, and it needs to be updated and communicated whenever there are changes in the due dates of open orders. The customer service level decreases is not a negative effect, but a possible outcome of changing the due dates of open orders. The customer service level measures the degree to which the production system meets or exceeds the customer expectations in terms of quality, quantity, and delivery. Changing the due dates of open orders may improve the customer service level for some customers, but it may also deteriorate it for others, depending on how the changes affect their orders. The schedule does not support demand is not a negative effect, but a potential problem of changing the due dates of open orders. The schedule should support demand by ensuring that the production system can produce or deliver what the customers want, when they want it. Changing the due dates of open orders may create a mismatch between the schedule and demand, which may result in overproduction or underproduction, stockouts or excess inventory, or late or early deliveries. References: CPIM Exam Content Manual Version 7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section 6.1: Detailed Scheduling Concepts, p. 36; Nervousness; Production Schedule.

A priority control technique is a method of determining the sequence and timing of production orders in a manufacturing system. A priority control technique can be either push or pull, depending on whether the production orders are initiated by the upstream or downstream processes. A cellular production system is a process of manufacturing that organizes the machines and workers into self-contained cells that can produce different products efficiently and flexibly. A cellular production system is usually based on the principles of lean manufacturing and group technology, which aim to eliminate waste and improve quality.

A pull production activity control (PAC) is a priority control technique that is most appropriate for a firm using a cellular production system. A pull PAC is a method of controlling the flow of materials and work-in-progress in a manufacturing system by using signals from the downstream processes to trigger the release of production orders from the upstream processes. A pull PAC helps to reduce inventory, lead time, and overproduction, as well as to synchronize the production with the customer demand. A pull PAC can be implemented using various techniques, such as kanban cards, containers, or electronic signals.

A shortest processing time (SPT) rule is a priority control technique that assigns the highest priority to the production order that has the shortest processing time at each workstation. An SPT rule helps to minimize the average waiting time and flow time of the production orders, as well as to increase the utilization of the machines and workers. However, an SPT rule does not consider the due dates or the customer demand of the production orders, and may result in poor customer service or low delivery performance.

A distribution requirements planning (DRP) is a priority control technique that determines the quantity and timing of finished goods to be delivered to various distribution centers or customers. A DRP is based on the forecasted demand, the inventory status, and the transportation lead time of the finished goods. A DRP helps to optimize the inventory level, reduce stockouts, and improve customer service. However, a DRP is not suitable for a cellular production system, as it does not control the flow of materials and work-in-progress within the manufacturing system.

A push production activity control (PAC) is a priority control technique that initiates the production orders based on the master production schedule or the forecasted demand from the upstream processes. A push PAC releases the production orders in batches or lots, regardless of the capacity or status of the downstream processes. A push PAC may result in high inventory, long lead time, and overproduction, as well as low flexibility and responsiveness to customer demand. A push PAC is not compatible with a cellular production system, as it contradicts the principles of lean manufacturing and group technology. References: CPIM Exam Content Manual Version 7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section 6.1: Detailed Scheduling Concepts, p. 36; Cellular manufacturing; [Production Activity Control].

A chase operational strategy is one that adjusts production to match the demand pattern. This means that the inventory level is kept low, as the output is synchronized with the demand. This reduces the inventory cost, as there is less need for holding, ordering, and carrying inventory. A chase strategy also minimizes the risk of obsolescence, spoilage, or excess inventory.

A level operational strategy is one that maintains a constant output rate, production rate, or workforce level. This means that the inventory level fluctuates, as the output may not match the demand. This increases the inventory cost, as there is more need for holding, ordering, and carrying inventory. A level strategy also increases the risk of stockouts, overstocking, or waste.

A mixed-model operational strategy is one that produces several products with the same resources. This means that the inventory level varies, as the output depends on the product mix and the demand. This may increase or decrease the inventory cost, depending on the product characteristics, demand variability, and resource utilization. A mixed-model strategy also requires more flexibility and coordination in production planning and scheduling.

A hybrid operational strategy is one that combines elements of chase and level strategies. This means that the inventory level is balanced, as the output is partly adjusted to the demand and partly kept constant. This may increase or decrease theinventory cost, depending on the degree of adjustment and constancy. A hybrid strategy also requires more trade-offs and compromises in production decision making.

References:

• APICS Exam Handbook, page 12
• CPIM Part 1 Study Guide, page 19
• CPIM Part 2 Study Guide, page 17