Cost Analysis & Value Engineering Flashcards
7 cards from real CPT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Cost Analysis & Value Engineering flashcards as text
Pallet cube utilization optimization primarily reduces which category of packaging cost?
Answer: Inbound freight and warehousing cost
Maximizing pallet cube reduces the number of truck loads and pallet positions required, directly lowering freight and storage costs.
A make-vs-buy analysis for custom packaging inserts should include all of the following EXCEPT:
Answer: Supplier's internal profit margin structure
A make-vs-buy analysis compares internal costs to the total supplier price; the supplier's internal margin is their proprietary information and not a valid input.
Downgauging a plastic container wall from 1.2 mm to 1.0 mm without changing outer dimensions primarily reduces cost through:
Answer: Lower resin consumption per unit
Downgauging reduces material weight per container, directly cutting resin usage and material cost while maintaining the same footprint.
When evaluating a switch from single-use corrugated transit packaging to a returnable plastic container (RPC) system, the break-even analysis must account for:
Answer: Number of trips required for RPC economics to offset higher upfront capital cost
RPCs have higher initial cost but lower per-trip cost; break-even is determined by the number of round trips needed for cumulative savings to exceed the capital premium.
A supplier offers a 5% discount for ordering 6 months of packaging inventory at once. The primary risk that must be factored into accepting this offer is:
Answer: Carrying cost of inventory and risk of obsolescence from label or design changes
Buying in bulk trades a unit-cost saving against inventory carrying cost (capital tied up, storage, insurance) plus the risk that designs change before stock is consumed.
Design for Manufacturability (DFM) in packaging cost reduction focuses on:
Answer: Simplifying package design and tolerances to lower production cost and reduce defects
DFM principles reduce part count, loosen tolerances where functionally acceptable, and align design with manufacturing capabilities to cut cost and scrap.
A packaging engineer is performing a cost-benefit analysis for adding an oxygen scavenger to a flexible pouch. The correct decision criterion is:
Answer: Add the scavenger if the benefit (e.g., extended shelf life, reduced spoilage) exceeds its added cost over the product's volume
A cost-benefit analysis approves an investment when quantified benefits (reduced waste, longer shelf life, market premium) exceed the incremental cost over the relevant volume.