APICS Certified in Production and Inventory Management (CPIM) — Question 9

A benefit of utilizing a transfer batch would be that it:

Answer options

• A. reduces the number of changeovers needed.
• B. allows multiple work centers to be working on the same shop order.
• C. allows its batch size to match the customer order size.
• D. reduces transportation costs between operations.

Correct answer: B

Explanation

The correct answer, B, indicates that a transfer batch allows different work centers to simultaneously process the same shop order, enhancing efficiency. Options A, C, and D do not accurately describe the primary benefit of transfer batches, as they focus on aspects like changeovers, customer order alignment, and transportation costs, which are not the main advantages.