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  1. Home
  2. APICS Certification
  3. CPIM-8.0 Exam
  4. APICS.CPIM-8.0.v2025-03-31.q52 Dumps
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Question 21

A firm that currently produces all items to stock is implementing the concept of postponement in all new product designs. Which of the following outcomes is most likely to result?

Correct Answer: C
Postponement is a strategy whereby the final configuration of a product is delayed as much as possible, usually until a customer order is received. Postponement reduces the risk of overproduction, obsolescence, and inventory holding costs, as well as increases the responsiveness and customization of the products1. A firm that currently produces all items to stock is implementing the concept of postponement in all new product designs. This means that the firm will produce generic or family products that can be differentiated into specific end-products later. This will result in a decrease in the number of finished items stocked, as the firm will only stock the generic or family products and not the final products. The firm will also be able to offer more product variety and flexibility to the customers, as it can customize the products according to the customer orders. Therefore, the most likely outcome of implementing postponement in all new product designs is a decrease in the number of finished items stocked. References: 1 Postponement - Wikipedia 2
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Question 22

Which of the following strategies is most appropriate for a business unit with a low relative market share in a high-growth market?

Correct Answer: C
For a business unit with a low relative market share in a high-growth market, the most appropriate strategy is investing in projects to maintain market share. In a high-growth market, opportunities for expanding or solidifying market share are significant. A business unit with a low market share can benefit from investing in projects that enhance its competitive position, such as improving operational efficiency, innovation in products or services, and marketing efforts. These investments aim to strengthen the unit's market presence and capitalize on the growth potential of the market. This approach is more suitable than using excess cash for other units, acquiring competitors, or just focusing on product improvements, as it directly addresses the need to build a stronger market position in a growing market.
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Question 23

When designing a production cell, which of the following items would be the most important consideration?

Correct Answer: B
A production cell is a group of machines or workstations that are arranged in a way that allows for continuous flow of materials and products. The main objective of designing a production cell is to reduce waste, improve quality, and increase productivity. One of the most important considerations for designing a production cell is the flow of materials into the cell and sequencing of operations to minimize total cycle time. Total cycle time is the time it takes for a product to go through all the steps in the cell, from the first operation to the last. By minimizing total cycle time, the production cell can achieve higher throughput, lower inventory, and faster delivery123 References: 1: CPIM Part 2 - Section C - Module 1 - Session 1 - Lean Manufacturing 2: CPIM Part 2 - Section C - Module 1 - Session 2 - Lean Manufacturing Tools 3: CPIM Part 2 - Section C - Module 1 - Session 3 - Lean Manufacturing Implementation
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Question 24

One way to mitigate liability risk in the supply chain is to:

Correct Answer: B
One way to mitigate liability risk in the supply chain is to require traceability for components. Liability risk is the risk that a party may be held responsible for certain types of losses caused by its actions or products to third parties1. Traceability is the ability to track the origin, history, location, and movement of a product or a component through the supply chain2. Requiring traceability for components can help to mitigate liability risk in the supply chain by enabling the identification and verification of the quality, safety, and compliance of the components, as well as the detection and prevention of counterfeit, defective, or hazardous components.
Traceability can also facilitate the recall, repair, or replacement of faulty components, and the allocation of responsibility and accountability among the supply chain partners in case of a liability claim34. References: 1 What is a Liability Risk? - Definition from Insuranceopedia 5 2 Traceability - Wikipedia 6 3 Supply Chain Liability in the Corporate Sustainability Due Diligence ... 7 4 CPIM Exam References - Association for Supply Chain Management 8
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Question 25

In preparing for a facility location decision, proximity to suppliers would be classified as which kind of criteria?

Correct Answer: D
Proximity to suppliers would be classified as a cost factor in preparing for a facility location decision. Cost factors are the expenses associated with operating a facility in a specific location, such as labor, materials, utilities, taxes, and transportation. Proximity to suppliers can affect the cost of inbound transportation, inventory holding, and quality control. Choosing a location that is close to suppliers can reduce these costs and improve the efficiency and reliability of the supply chain. References:
Managing Supply Chain Operations, Chapter 2: Global Supply Chain Strategy, Section 2.3: Facility Location CPIM Exam Content Manual, Module 1: Supply Chains and Strategy, Section 1.4: Facility Location, Subsection 1.4.1: Facility Location Concepts
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