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630-007 - C.P.M. Module 3: Value Enhancement Strategies - Dump Information

Vendor	:	ISM
Exam Code	:	630-007
Exam Name	:	C.P.M. Module 3: Value Enhancement Strategies
Questions and Answers	:	201 Q & A
Updated On	:	November 29, 2017
PDF Download Mirror	:	630-007 Brain Dump
Get Full Version	:	Pass4sure 630-007 Full Version

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630-007 Questions and Answers

Answer: B

QUESTION: 184

A consequence of the Taft-Hartley Act is that it ?

1. Allows Congress to establish minimum hourly rates for certain workers
2. Enables the Department of Labor to establish minimum hourly rates for certain workers
3. Allows the President to intervene in labor disputes
4. Enables the Department of Health and Human Services to establish health and safety standards in certain industries

Answer: C

QUESTION: 185

What would be the break-even level of volume between Machine A and Machine B where Machine A costs $750 to set up each time it is used, and the unit costs of operation are $5 per unit. Whereas Machine B has $1,000 set-up costs, and its variable costs of operation are $3.80 per unit.

A. 113.6

B. 208.3

C. 210.0

D. 225.4

Answer: B

QUESTION: 186

Which type of supplier would be LEAST critical to develop into a JIT supplier?

1. A key technology supplier
2. A process-intensive supplier
3. A supplier of a commodity
4. A long lead time supplier

Answer: C

QUESTION: 187

What is the term used to refer to the practice of replacing both the salesperson and

1. Supplier partnering
2. Strategic alliance
3. JIT II
4. Supply chain management

Answer: C

QUESTION: 188

Which of the following types of Fixed Order Quantity models refers to the consideration of tradeoffs between the carrying and ordering costs, assuming constant costs?

1. Economic Order Quantity with Price Discounts
2. Economic Order Quantity with Uncertain Demand
3. Economic Order Quantity
4. Non-Instantaneous Replenishment Economic Order Quantity

Answer: C

QUESTION: 189

What does the term "avoidance of risk" refer to in commodity trading?

1. shorting
2. hedging
3. spot buying
4. margin buying

Answer: B

QUESTION: 190

Which of the following strategies would be the MOST cost effective to follow in an effort to reduce the cost impact of obsolete retail inventory?

1. introduce a new product
2. revise the specifications
3. scrap the stock

Answer: D

QUESTION: 191

Which of the following represents a major benefit of JIT II to the supplier?

1. an ongoing relationship
2. a decrease in administrative costs
3. a reduction in material costs
4. the creation of supply standards

Answer: A

QUESTION: 192

Which of the following would represent the BEST strategy to follow in an effort to hold costs relatively constant in the short run in a case where a clothing manufacturer learns that world climatological conditions will cause the prices of certain natural fibers to rise?

1. Increasing retail prices of their products
2. Reducing the level of output
3. Employing forward buying techniques
4. Automating production of their products

Answer: C

QUESTION: 193

At which of the following stages of a value analysis study would you typically find determination and comparison of suitability?

1. Information
2. Analysis
3. Collection
4. Action

Answer: B

QUESTION: 194

Which of the following is a MOST likely consequence of early purchasing involvement (EPI) during the capital acquisition process?

1. providing data of requirements to suppliers in advance
2. shortening the acquisition process
3. increasing the chances of developing a quality product
4. reduction of the cycle time

Answer: B

QUESTION: 195

Which of the following is NOT permitted within brainstorming?

1. creativity
2. equal opportunity for all participants
3. use of cross-functional teams
4. value judgments

Answer: D

QUESTION: 196

In which type of cost reduction will simplification lead to increased savings?

1. transportation
2. inventory
3. materials shortages
4. obsolescence

Answer: B

QUESTION: 197

In a forward buying scenario the average price paid on the cycle's upswing should be

?

1. less than the cash price for futures
2. less than the contract
3. less than the market price during that period
4. the average of the market during that period

Answer: C

QUESTION: 198

When considering a cost reduction program the PRIMARY objective is to obtain products and services ?

1. without defects
2. at reduced lead times
3. at a lower price
4. at better value

Answer: D

QUESTION: 199

Which of the following does NOT represent a reason for expending considerable attention to disposal activities?

1. They lead to reduced inventory levels.
2. They result from shortened product life.
3. They contribute to standardization programs
4. They free up valuable space.

Answer: D

QUESTION: 200

Where would international trade merchandise and services manifest an undervalued

U.S. dollar the most?

1. decreased foreign travel to the United States
2. economic weakening of U.S. trading partners
3. increased foreign sales by U.S. manufacturers
4. increased the purchase of foreign goods and services by Americans

Answer: C

QUESTION: 201

What is the logical consequence of falling prices in the case where demand in a

market is inelastic?

1. Total demand will increase.
2. Total revenue will decrease.
3. Total output will increase
4. Total revenue will increase.

Answer: B