APICS/CPIM EXAM 1 COMPLETE QUESTIONS WITH CORRECT ANSWERS

APICS/CPIM EXAM 1 COMPLETE QUESTIONS WITH CORRECT ANSWERS. ABC classification -Answer-Process of classifying items in descending order based on annual dollar volume or some other criteria. The list is then split into 3 classes - A, B, and C. A represents 10-20% of items but 50-70% of dollar volume; B represents 20% of items and 20% of dollar volume; C represents 60-70% of items but 10-30% of dollar volume. This principle states that effort and money can be saved by applying looser controls to the low dollar volume items (C class) than the higher dollar volume items (A & B classes) and applies to inventory, purchasing, sales, etc. Advance ship notice (ASN) -Answer-Electronic data interchange (EDI) notification of shipment of goods Andon -Answer-Electronic board that provides visibility of floor status and gives info to help coordinate efforts linked to work centers; green light = running, red light = stop, yellow light = needs attention Anticipation inventories -Answer-Any additional inventory above basic pipeline stock to cover projected trends of increased sales, planned promo programs, seasonal fluctuation, plant shutdowns, and vacations Assemble-2-order -Answer-Production environment where a good or service can be assembled after receipt of a customer's order. The key components (or ingredients) used in assembly or finishing process are planned and stocked in anticipation of a customer order. Receipt of order initiates assembly of the customized product. Useful strategy when a large number of end products can be assembled from common components Available inventory -Answer-On-hand inventory balance minus allocations, reservations, backorders, and quantities held for quality problems Backflush -Answer-Method of inventory bookkeeping where the book inventory is automatically reduced after completion of activity on component's upper-level parent item based on what should have been used as specified on the BOM and allocation records; disadvantage is difference between book inventory and physical OH inventory Backhauling -Answer-Process of transportation returning from original destination point to point of origin; can be full, partial, or empty load Backlog -Answer-All customer orders received but not yet shipped (open orders or order board) Backorder -Answer-Unfulfilled customer order or commitment. An immediate (or past due) demand against an item whose inventory is insufficient to satisfy the demand Back scheduling -Answer-Technique for calculating operation start dates and due dates; start with order due date and work backwards to calculate required start date and/or due dates for each operation Batch -Answer-Qty scheduled to be produced or in production; type of mfg process used to produce items with similar designs & cover wide range of order volumes; items ordered are of a repeat nature Bill of lading -Answer-Document issued by a carrier which details a shipment of merchandise and gives title of that shipment to a specified party. Bill of material (BOM) -Answer-Listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly; used in conjunction with the master production schedule to determine the items for which purchase requisitions and production orders must be released; list of all the materials needed to make one production run of a product, by a contract manufacturer, of piece parts/components for its customers Bonded warehouse -Answer-Buildings or parts of a building designated by Sec of Treasury for storing imported goods, operated under supervision of US Customs Bottleneck -Answer-Facility, function, department, or resource whose capacity is less than the demand placed upon it; machine or work center Break-bulk -Answer-Dividing truckloads of similar items into smaller, more appropriate qty's for use Buffer -Answer-Qty of materials awaiting further processing; can refer to raw materials, semi- finished stores or hold points, or a work backlog that is purposely maintained behind a work center; in TOC, it can be time or material and support thruput and/or due date performance maintained at the constraint, convergent points (with a constraint part), divergent points, and shipping points Buffer management -Answer-In TOC, process whe