Cpim 8 Ecm
Cpim 8 Ecm
EFFECTIVE DATE
June 1, 2023
EXAM CONTENT
MANUAL
APICS Certified in Planning and Inventory
Management (CPIM®)
Exam Content Manual
Version 8.0
ASCM staff has taken care to ensure that the contents of this exam content manual are accurate
and up to date at the time of publication. However, any corrections can be found on the ASCM
website at ascm.org/ecmerrata.
The references in this manual have been selected solely based on their educational value to the
APICS CPIM certification program and the content of the material. APICS does not endorse any
services or other materials that may be offered or recommended by the authors or publishers of
books and publications listed in this manual. Internet links for various bibliographic references can
be found on the ASCM website at ascm.org/cpim.
No portion of this document may be reproduced under any circumstances. CPIM is a registered
trademark of APICS.
©APICS
The Association for Supply Chain Management (ASCM) is the global pacesetter of organizational
transformation, talent development and supply chain innovation. As the largest association for
supply chain, ASCM members and worldwide alliances fuel innovation and inspire accountability for
resilient, dynamic and sustainable operations. ASCM is built on a foundation of world-class APICS
education, certification and career resources, which encompass award-winning workforce
development, relevant content, groundbreaking industry standards and a diverse community of
professionals who are driven to create a better world through supply chain.
©APICS
Acknowledgments
ASCM would like to extend our gratitude to the following subject matter experts for their voluntary
contributions, time commitment, expertise, and passion to the continued development of the CPIM
program.
Certification Committee Chair
• William Leedale, CPIM-F, CIRM, CSCP, CLTD
CPIM Part 1 Exam Subcommittee Members
• Tricia Kerns, EdD, MBA, LSSBB, CPIM, CLTD (Chair)
• Staffan Cederstrand, CPIM
• Lawrence Ettkin, Ph.D., CPIM-F
• Lori Jones, CPIM
• Julius Oni, CPIM
• Eric Schaudt, CPIM-F, CSCP, SCOR-P, CLTD, GLA
• William Thurston, CPIM-F, CIRM, CSCP-F, PMP
CPIM Part 2 Exam Subcommittee Members
• Andrea Prud’homme, Ph.D., CPIM-F, CIRM, CSCP, CLTD (Chair)
• Lu Li, CPIM
• Murray Olsen, CPIM-F, CIRM, CQA, CMQ/OE, CSSGB
• Robert Pinchot, CPIM, CSCP
• Jaap Stumphius, CPIM-F, CSCP, CLTD
• Sam Terzich, CPIM
• Rosemary Van Treeck, CPIM, CIRM, CSCP
• Thorsten Zedel, CPIM
CPIM JTA Task Force Members
• Jessica Crawford, CPIM
• Oswaldo D'Andrea Neto
• Melissa de Souza Rosa Nogueira
• Jeffrey Dilorenzo, CPIM, CSCP
• Mathurin Django, CSCP, PMP
• Eva Mata, CPIM, CSCP, CLTD, DDLP
• Robert L Rice
• Michael Snyder, CPIM-F, CIRM, CSCP-F, CLTD
• Marina Witwer
We would also like to thank the ASCM Corporate Members for their support in the advancement and
education of supply chain and operations management.
ASCM relies on the support of volunteers to maintain the quality and prestige of the APICS
certification programs.
©APICS
Table of Contents
Letter to Candidates ............................................................................................................ 1
Introduction .......................................................................................................................... 3
About the APICS CPIM Examination ..................................................................................... 3
Question Format ............................................................................................................... 3
Taking the Test ................................................................................................................. 3
Interpreting Test Scores ................................................................................................... 4
Studying for the APICS CPIM Exam ...................................................................................... 4
APICS CPIM References.................................................................................................... 4
Terminology ...................................................................................................................... 5
Additional Resources for APICS CPIM Candidates............................................................... 5
APICS CPIM Learning System ........................................................................................... 5
APICS CPIM Instructor-Led Review Courses and Educational Programs ......................... 5
Job Task Analysis ................................................................................................................. 6
Exam Content versus Courseware ....................................................................................... 6
APICS CPIM Certification Maintenance: Continuing Professional Development ................. 7
The Importance of Certification Maintenance.................................................................. 8
APICS Certified in Planning and Inventory Management Fellow (CPIM-F) ........................... 8
ASCM Code of Ethics ............................................................................................................ 9
Bibliography and References for CPIM ............................................................................. 10
APICS Certified in Planning and Inventory Management .................................................. 12
Scope of the Subject Matter.......................................................................................... 12
Exam Percentage by Content Area ................................................................................ 14
Content Outline.............................................................................................................. 14
Key Terminology ................................................................................................................ 27
Supplemental Glossary ..................................................................................................... 29
Sample Questions ............................................................................................................. 30
Answers to Sample Questions .......................................................................................... 33
Since CPIM was implemented by APICS in The following is a summary of the APICS CPIM
1973, it has continued to provide a standard exam:
for individuals to evaluate their knowledge of
this ever-evolving field. APICS has CPIM combines key concepts from the field of
administered more than 1 million exams in operations management. It details eight
over 100 countries, and more than 115,000 domains of operations management. These
professionals have earned the APICS CPIM include: align the supply chain to support the
designation. business strategy, conduct sales and
operations planning to support strategy, plan
The mission of the CPIM program is to be the and manage demand, plan and manage
premier professional certification for supply supply, and plan and manage one of the
chain and operations management. The CPIM largest components of working capital for any
exam is designed to test individuals in the company: inventory. To this we add: plan,
various concepts, methodologies, terminology, manage, and execute detailed schedules; plan
and integration of topics within the supply and manage distribution; and manage quality,
chain and operations functions. ASCM has continuous improvement, and technology.
worked to ensure that CPIM exams are
consistently reliable and that the highest APICS CPIM is an outstanding educational
professional standards are used to develop program that will continue to evolve,
and administer the program. ASCM and the incorporating relevant and current concepts
CPIM Exam Subcommittee strive to ensure and techniques into the body of knowledge.
you have a credential that is valuable to you
both now and in the future.
2 ©APICS
Introduction About the APICS CPIM
This exam content manual (ECM) provides
Examination
guidance for individuals preparing for the
The APICS CPIM exam consists of 150
CPIM certification examination. The objective
questions, of which 20 are pre-test questions
of this manual is to outline the APICS CPIM
that do not contribute to the total score but
body of knowledge.
are used for statistical purposes only. Pre-test
questions are continuously introduced and
The CPIM body of knowledge section of this
evaluated statistically, as part of an industry
manual begins with a statement on the scope
best practice for certification program exam
of the subject matter, followed by a
development. Pre-test questions appear
descriptive outline of the content. Key
similar to the scored questions and are
terminology and a bibliography of suggested
randomly distributed throughout the exam.
references are also provided. The exam
Candidates should answer all exam questions.
overview concludes with sample questions
There is a 3 ½ hour time limit for the exam.
similar to those that appear on the
examination along with the correct answers
For more information regarding testing and
for the sample questions and brief
registration policies and procedures, please
explanations as to why they are correct.
visit ascm.org/CPIM and the APICS Exam
Handbook.
The recommended procedure for mastering
the subject matter is to:
Question Format
• review the content outline, which The questions on the CPIM exam are intended
defines the scope of the material, and to test a candidate’s understanding of the
CPIM body of knowledge. The questions
• study each topic area using the
frequently require the candidate to select the
suggested references.
best of four choices or complete a calculation
based on the information given. They may also
At the end of each major section of the
ask the candidate to illustrate their
content outline is a list of the references that
understanding of a concept, process, or
apply to the topics in that section. The first
procedure. These questions may require the
number indicates the sequence number for
examinee to make finer or more in-depth
the reference in the Bibliography section, and
distinctions than the exercises or items
the numbers in parentheses indicate the
presented in a course. It is helpful to
relevant chapter(s) within that reference.
understand the various formats of questions
on the examination. Practice questions can be
Candidates should understand the definitions
found in the Sample Questions section of this
of the key terminology and the application of
ECM.
the outlined tools, processes, and techniques.
Sufficient references are given for each topic Taking the Test
area that provides different approaches to The test is designed to evaluate a candidate’s
material covered in each exam and different knowledge of the subject matter. Therefore,
styles of presenting it. Reading periodicals the key to success is a thorough
including SCM Now Impact, the ASCM Insights understanding of the subject matter. All
blog, and ASCM research reports, as well as questions are based on the current CPIM body
listening to podcasts, such as ASCM’s The of knowledge as represented by the exam
Rebound, will help you keep up-to-date about content manual.
industry trends.
When you begin the exam, read the directions
carefully. Be sure you understand the directions
The CPIM exam scaled score range is 200 – A candidate may discover that the material
350. covered in the chapters of one reference
duplicates material covered in another
200–299: Fail reference. Both sources are included as
references to allow candidates some
300–350: Pass
discretion in selecting test preparation
The minimum passing score is 300. materials that they find most accessible and
Candidates will receive a final exam score understandable.
along with diagnostic information by topic
area on their performance. All APICS exams
4 ©APICS
In deciding if a single reference is sufficient, As with any investment, you should research
candidates should assess their own level of various learning options before choosing one.
knowledge against both the descriptive exam
specifications and the detailed topic list in the APICS CPIM Learning System
content outline. If there are any areas of The APICS CPIM Learning System is a
weakness, the candidate should consult other comprehensive professional development and
references as part of the test preparation certification preparation program. This self-
process. directed program combines print material and
online interactive tools. This system is also
APICS Dictionary. The APICS Dictionary is an offered in instructor-led formats.
essential reference to the exam content
manual and APICS exams. Within the The APICS CPIM Learning System does not
profession, terminology varies among “teach the tests” and in many areas reviews
industries, companies, and the academic concepts but does not teach concepts. The
community. The exam uses standard APICS CPIM Learning System provides a
terminology as defined in the APICS thorough review of the subject matter, but it
Dictionary. Recognizing the terms and should not be used without the most current
understanding their definitions are essential. APICS CPIM Exam Content Manual (ECM) as a
means to direct the candidate’s study. There
Terminology will likely be some content in the APICS CPIM
In studying for the APICS CPIM certification Learning System not covered by the exam;
exam, candidates may discover multiple terms conversely, there will likely be some content in
used to denote the same technique. Examples the exam not covered by the learning system.
of this include “sales and operations planning No CPIM exam questions are derived from the
(S&OP)” versus “production planning” and learning system. Thus, it is essential for
“master production schedule (MPS)” versus candidates to use the current ECM in their
“master schedule.” ASCM and the certification studies.
exam subcommittees have worked to provide
consistency with preferred terminology. APICS CPIM Instructor-Led Review
However, synonyms are often used by authors Courses and Educational
in the various references used to compile the
body of knowledge. Candidates are Programs
encouraged to be familiar with all terms and The instructor-led format combines the APICS
concepts listed within the Content Outline and CPIM Learning System’s print and online
Key Terminology sections of this manual, components with the leadership of a qualified
using the APICS Dictionary as the primary instructor; peer collaboration; networking; and
guide for definitions. a structured, set schedule to keep
participants on track. Learn more about APICS
recognized instructors at
Additional Resources for apics.org/recognizedinstructors or find local
APICS CPIM Candidates ASCM partners that provide APICS CPIM
courses at ascm.org/learning-opportunities.
In addition to the cited references, it may be
helpful for you to pursue chapter-sponsored ASCM also offers a variety of educational
courses, college courses, ASCM workshops, programs. For a complete list of learning
self-study courses, or courses offered by the opportunities and resources, please visit
ASCM network of international partners as a ascm.org.
means of learning the body of knowledge
tested in the certification program. A wide
variety of courses and materials are available.
6 ©APICS
Courseware developers and/or instructors courseware / learning systems, ECMs, and
may believe that additional material needs to different exam forms.
be taught or included to ensure understanding
of the body of knowledge. They also may
decide that a concept or term is adequately
covered by the definitions in the APICS
Dictionary or content outlines and not cover it
in the course. These differences sometimes
lead candidates to perceive a disconnect
between the courseware and the exam when,
in fact, they are both covering the same body
of knowledge.
8 ©APICS
ASCM Code of Ethics to age, gender, race, ethnicity,
national origin, religion, sexual
When you begin the exam registration orientation, disability, language, and
process, you will be asked to pledge to abide socio-economic status;
by the ASCM Code of Ethics. Once certified, • In your professional capacity, do not
you pledge to continue your education to engage in behavior that is harassing
increase your contribution to the supply chain or demeaning to others based on
management profession. After achieving the factors, including but not limited to
APICS CPIM designation, you pledge also to age, gender, race, ethnicity, national
share your knowledge with others by origin, religion, sexual orientation,
participating in ASCM research and disability, language, or socio-economic
educational activities at local, district, status;
national, and international levels. • Adhere to this Code of Conduct and its
application to your professional work.
The ASCM Code of Ethics is as follows: Lack of awareness or
misunderstanding of an ethical
• Maintain exemplary standards of standard is not itself a defense to a
professional conduct; charge of unethical conduct;
• Do not misrepresent your • Contact the Ethics Committee when
qualifications, experience, or uncertain whether a particular
education to ASCM or others you serve situation or course of action violates
in a professional capacity; the Code of Conduct; and
• Respect and do not violate the United • Do not become the subject of public
States Copyright of all ASCM disrepute, contempt, or scandal that
materials, including but not limited to affects your image or goodwill.
courseware; magazine articles and
other ASCM publications; APICS Failure to abide by the ASCM Code of Ethics
conference presentations; and CPIM, may result in sanctions up to and including
CSCP, CLTD, and SCOR-P examination decertification.
resources. In this same spirit, you
must not violate the copyright of other
organizations and individuals in your
professional capacity;
• Do not engage in or sanction any
exploitation of one’s membership,
company, or profession;
• Encourage and cooperate in the
interchange of knowledge and
techniques for the mutual benefit of
the profession;
• In your professional capacity, respect
the fundamental rights and dignity of
all individuals. You must demonstrate
sensitivity to cultural, individual, and
role differences, including those due
References Author(s)
1 APICS Dictionary, 16th ed., 2019 APICS
Accelerate: Building Strategic Agility for a
2 Kotter, John P.
Faster-Moving World, 2014
Crafting & Executing Strategy: The Quest for Thompson, Arthur A., Margaret A.
3 Competitive Advantage: Concepts and Cases, Peteraf, John E. Gamble, and A. J.
22nd ed., 2019 Strickland III
Designing and Managing the Supply Chain:
Concepts, Strategies and Case Studies, Simchi-Levi, David, Philip Kaminsky, and
4 Edith Simchi-Levi
3rd ed., 2008
Distribution Planning and Control: Managing in
5 the Era of Supply Chain Management, Ross, David Frederick
3rd ed., 2015
6 GRI Standards Global Reporting Initiative
Introduction to Materials Management, Chapman, Stephen N., J. R. Tony Arnold,
7 8th ed., 2017 Ann K. Gatewood, and Lloyd M. Clive
Lean Production Simplified: A Plain-Language
8 Guide to the World’s Most Powerful Production Dennis, Pascal
System, 3rd ed., 2015
Making Sustainability Work: Best Practices in
Managing and Measuring Corporate Social, Epstein, Marc J., and Adriana Rejc
9 Environmental and Economic Impacts, 2nd ed., Buhovac
2014
Managing Quality: Integrating the Supply Chain,
10 Foster, S. Thomas
6th ed., 2017
Manufacturing Planning and Control for Supply Jacobs, F. Robert, William L. Berry,
11 Chain Management, The CPIM Reference, 2nd D. Clay Whybark, and Thomas E.
ed., 2018 Vollmann
12 Operations Strategy, 5th ed., 2017 Slack, Nigel, and Michael Lewis
Technology in Supply Chain Management and Pagano, Anthony M., and Matthew
13 Logistics: Current Practice and Future Liotine
Applications, 2019
United Nations Global Compact: Guide to UN Global Compact
14
Corporate Sustainability, 2015
United Nations Global Compact Management Deloitte Touche Tohmatsu
15
Model: Framework for Implementation, 2010
10 ©APICS
Note: At the end of each major section in the CPIM content outline is a list of the references that
apply to the topics within that section. The first number indicates the sequence number for the
references designated in each subject area within the content outline. For example, “7 (chapters 4,
8, 11, 14, 16)” refers to the reference, Introduction to Materials Management, 8th edition, 2017,
and chapters 4, 8, 11, 14, and 16 of that reference contain content relevant to that subject matter.
As mentioned previously, the CPIM version 8.0 The subject matter is organized into eight
subject matter was validated during the 2019 main content areas:
job task analysis (JTA), which was also used to
support the previous CPIM version 7.0 Part 1
and Part 2 program. Using this same subject
12 ©APICS
Align the Supply Chain to Support the implement the schedule. These plans are
Business Strategy used to create, manage, and maintain the
This section includes principles and material requirements plan for dependent
techniques to understand the business make and buy items, as well as the final
environment in which an organization assembly schedule (FAS) to support customer
operates, to align business and functional demand. Items that are purchased require the
strategies, and to make decisions to support development of external supply sources that
competitive advantage in the short and long may represent a range of supplier
term. This involves choices about resources, relationships and oversight methods. An
processes, technologies, and facility layouts, important part of managing supply is the
including their inherent trade-offs and how consideration of trade-offs, material costs,
these choices may change in support of and risk to ensure continuity of supply and
different product/service life cycle stages. support competitive priorities and supply
Supporting the long-term sustainability of the chain strategy. Choices and decisions may
organization and adjustment to changing vary across a product’s or service’s life cycle.
conditions requires monitoring key
performance indicators (KPIs) and managing Plan and Manage Inventory
risk. This section includes the principles and
techniques needed to manage inventory in
Conduct Sales and Operations Planning support of the organization’s resource
(S&OP) to Support Strategy availability, business and functional
This section includes the principles and strategies, and tactical planning. Decisions
techniques used to facilitate communication regarding types, volumes, replenishment
and decision-making among various parts of methods, and material handling impact
an organization to support business inventory investments and availability.
strategies. This includes the evaluation of Inherent in inventory management is the
supply and demand at an aggregate level and consideration of trade-offs between service
reconciliation of product/service portfolios, and cost. Included here is the storage and
demand, supply, and financial plans while tracking of inventory, as well as processes to
considering the trade-offs of available manage inventory returns for proper
choices. disposition.
14 ©APICS
resources and create lasting C. Design processes and layouts to align with
competitive advantage strategic goals
a. Define corporate mission, vision,
and values 1. Examine the trade-offs of process
b. Establish product and service choices within the product-process
differentiation and competitive matrix (examples include: project,
priorities (examples include: fixed-position, job shop, batch, mass
availability, cost, quality, delivery, customization, assembly line,
and flexibility) repetitive, intermittent, discrete, and
c. Determine the firm’s order winners continuous flow)
and qualifiers 2. Examine trade-offs within the service
d. Evaluate key customer segments decision (examples include: degree of
and incorporate requirements as contact, opportunity for sales, and
appropriate for the corporate and production efficiency)
business unit strategy 3. Determine layout to support product
e. Consider vertical and horizontal and service design decisions
integration alternatives (examples include: fixed position,
process/functional layout,
B. Develop, align, and implement functional cellular/product focus, and assembly
and operational strategies line)
4. Align process choices and layouts with
1. Determine operations strategy to product/service life cycles
utilize core competencies and
available resources, manage cost, and D. Define and monitor key performance
support company policies, as well as indicators (KPIs) to evaluate performance
support regulatory and intellectual in relation to the organization’s strategic
property guidelines goals
2. Determine technology choices
(examples include: levels of 1. Use appropriate financial metrics
automation, cloud, and agile) to (examples include: cash-to-cash cycle
improve efficiency, costs, and time, cash conversion cycle, and cash
organizational capabilities flow)
3. Perform make-buy analysis to assess 2. Use appropriate operational metrics
costs, capacity availability, quality, and (examples include: customer service
other considerations levels, order fill rate, and stockout
4. Establish chase, level, hybrid, and percentage)
subcontracting production strategies 3. Apply KPI tools (examples include: KPI
5. Establish lead and lag capacity trees, maturity assessment, SCOR
strategies metrics, and balanced scorecard)
6. Support marketing strategies (Four Ps 4. Review sales and operations planning
– product, price, promotion, and (S&OP) process effectiveness
place)
7. Determine the push-pull boundary and E. Identify and manage supply chain risks
the manufacturing environment to (examples include: supply disruption,
align with strategy (examples include: financial, environmental, physical,
make-to-stock (MTS), assemble-to- political, cyber, intellectual property, and
order (ATO) / configure-to-order (CTO), branding)
make-to-order (MTO), engineer-to-
order (ETO), and remanufacturing) 1. Use supply chain mapping and event
8. Align the facilities strategy with monitoring for risk identification within
manufacturing/service strategies
CPIM Exam Content Manual 15
regulatory requirements to support 14-17); 12 (chapters 1-2, 4-10); 13 (chapters 1-
different levels of risk tolerance 2, 8, 10); 14; 15
2. Assess the probabilities, timing, and
impact of potential supply chain Note: The first number indicates the sequence
failures number for the reference in the bibliography
3. Perform risk management activities section, and the numbers in parentheses indicate
(examples include: risk prevention, the relevant chapters within that reference.
mitigation, recovery, pooling, and
resiliency) II. Conduct Sales and Operations Planning
4. Use appropriate risk management (S&OP) to Support Strategy
tools and guidance (examples include:
failure modes and effects analysis A. Understand the role of the S&OP process
(FMEA) and ISO risk management in the organization
standards)
5. Comply with security (examples 1. Review the role of S&OP in the
include: physical and cyber) planning and control hierarchy
requirements/regulations 2. Understand the impact of different
business environments on the S&OP
F. Manage capital equipment and facilities process
3. Evaluate the involvement of various
1. Review capital budgeting goals and levels of management and their roles
performance in the S&OP process
2. Implement total productive 4. Identify the planning horizon and the
maintenance (TPM) appropriate aggregation level
3. Comply with health, safety, and 5. Implement the steps of the S&OP
environment process
requirements/regulations 6. Review the various inputs and outputs
of each of the S&OP steps
G. Define and support sustainability goals
(environmental, financial, social) B. Review aggregate demand plan
16 ©APICS
(examples include: new product 2. Engage in customer relationship
introductions (NPI) and obsolescence) management (CRM) based on
3. Develop and validate a production segmentation
plan to support the firm’s strategic 3. Set customer service policies, safety
choices stock levels, and performance targets
4. Evaluate the resource plan to support 4. Determine appropriate use of point-of-
the aggregate supply plan sale (POS) data and collaborative
5. Review strategic buffers planning, forecasting, and
a. Identify bottlenecks, capacity- replenishment (CPFR)
constrained resources (CCR), and 5. Maintain effective customer
supply chain risks communications using appropriate
b. Evaluate types, sizes, and tools
locations of buffers, such as lead 6. Determine and monitor order delivery
time, inventory, and capacity performance metrics
18 ©APICS
B. Perform rough-cut capacity planning pegging relationships, support other
(RCCP) decisions and productivity measures
based on the type of environment and
1. Review bill of resources to determine product life cycles, and implement
capacity requirements and the impact bottom-up replanning as needed
of the RCCP on supply 5. Monitor system feedback
2. Identify and manage critical work mechanisms, such as action
centers to support the MPS messages, to enable the appropriate
3. Develop work center efficiency and adjustments necessary to balance
utilization goals and monitor supply and demand
performance 6. Manage closed-loop integration with
4. Incorporate maintenance schedules in master planning, final assembly, and
capacity planning configuration processes to monitor
material availability with demand
C. Manage the material requirements plan quantities, timing, and priorities
20 ©APICS
and other parameters to reflect c. Determine centralized versus
product life cycles, current conditions, decentralized inventory
and company strategy management strategies
3. Utilize what-if analysis and simulation 2. Understand the types and
to evaluate potential changes to the classifications of inventory
existing material plan a. Identify the types of inventory
4. Monitor the status of buffers (examples include: raw materials,
work in process (WIP),
I. Conduct product life cycle management semifinished goods, finished
(PLM) goods, floor stock, and
maintenance, repair, and
1. Develop new product introduction operating (MRO) supplies)
(NPI) schedule b. Determine the classifications of
a. Apply design for manufacture and inventory (examples include: cycle
assembly (DFMA) and stock, lot-size, seasonal,
modularization anticipation, hedge, decoupling,
b. Review constraints that may consignment, in-transit (pipeline),
impact the NPI schedule point-of-use, service part, vendor-
c. Create a prototype schedule in managed inventory (VMI), excess,
consideration of supply and obsolete, and scrap)
demand plans 3. Determine item segmentation
2. Develop an end-of-life plan (examples include: ABC classification,
a. Review product obsolescence perishability, hazardous materials,
timing and inventory impact special handling, supply risk, and
b. Review lifetime and minimum customer risk)
order quantity requirements from
suppliers and for customers B. Inventory management
22 ©APICS
costs, ownership, lead times, and synchronization, balancing
material handling) operations, and line balancing)
2. Develop and manage reverse logistics 3. Manage bottlenecks utilizing theory of
processes around the waste hierarchy, constraints (TOC) techniques
considering company acceptance (examples include: improve flow,
guidelines, regulatory requirements, couple and decouple operations as
recall guidelines, and customer needed, and elevate the bottleneck as
expectations appropriate)
4. Plan non-standard demand
References: 1; 4 (chapters 2, 6, 15); 5 a. Identify the impact of unplanned
(chapters 6-9, 12); 7 (chapters 1, 7, 9-13, 15); or non-standard work (examples
8 (chapter 5); 11 (chapters 10, 12-13, 16) include: samples, tests, and
engineering prototypes) and
VI. Plan, Manage, and Execute Detailed quality problems on resources
Schedules b. Assess impacts of industry-specific
conditions on resources (examples
A. Plan detailed schedules include: remanufacturing, by-
products, co-products, and
1. Determine production or flow rate recycled material)
a. Determine the elements of lead
time, including queue, setup, run, B. Create production and service schedules
wait, and move times
b. Calculate load from all sources, 1. Evaluate theoretical, demonstrated,
such as planned and released available, and rated capacity
orders, repetitive schedules, past- 2. Recognize industry specific demand
due orders, rework orders, and and capacity characteristics to
work in process (WIP), including manage loads
process and setup times 3. Create the load on capacity using
c. Evaluate throughput by measuring appropriate operations scheduling
efficiency, utilization, productivity, techniques (examples include: infinite
takt time, cycle time, and and finite capacity planning,
input/output control (I/O) constraint-based finite scheduling,
d. Manage schedules and throughput and load balancing)
in various industries 4. Apply appropriate simulation and
2. Create work sequences to improve modeling techniques to assess
efficiency, resolve supply and demand viability of various options or
imbalances, and consider time fence opportunities
policies and the manufacturing 5. Manage various methods of balancing
calendar capacity and load (examples include:
a. Utilize appropriate tools to create rescheduling, splitting orders,
efficient schedules in a push modifying order quantities,
environment (examples include: outsourcing, workforce development,
time standard, priority control, and changing capacity through
dispatch list, setup matrix, lot workforce changes)
splitting, overlapped schedule, 6. Determine and maintain safety
alternate operations or routings, capacity and capacity cushions as
and sequencing rules) appropriate for the business
b. Utilize appropriate tools to create environment
an efficient pull environment 7. Load operations and adjust capacity to
(examples include: mixed-model accommodate process variability and
scheduling, rate-based scheduling, planned downtime
CPIM Exam Content Manual 23
8. Manage constraints and balance flow 2. Authorize vendor-managed inventory
using process flow scheduling in (VMI) with key suppliers
process industries in either batch or
continuous mode References: 1; 4 (chapters 3, 6); 7 (chapters
9. Create labor schedules; determine 5-6, 12-13, 15); 8 (chapter 8); 11 (chapters
staffing based on human resources 10-13, 17); 12 (chapters 4, 9-10)
(HR) policies, labor pool, labor skills
matrix; and consider outsourcing and VII. Plan and Manage Distribution
contract labor
A. Plan distribution
C. Implement and manage detailed
schedules 1. Determine network configuration
trade-offs (examples include: total
1. Release manufacturing and service costs, inventory investment, customer
orders and issue materials as service, lead time, and inbound and
scheduled outbound transportation costs)
2. Measure actual capacity performance 2. Develop the distribution plan
to the plan a. Develop a distribution location-
3. Manage material routing specific product forecast
a. Evaluate the size of process b. Develop the replenishment
batches and transfer batches to planning parameters for stock
support production and inventory keeping units (SKUs) within the
plans distribution network
b. Review equipment and labor c. Undertake time-phased planning
statuses, work orders, preventive logic for distribution requirements
maintenance schedules, and their planning (DRP)
impact on the plan 3. Review distribution plans and master
c. Determine when alternate schedules to support the sales and
operations or routings should be operations planning (S&OP) decisions
utilized 4. Review inventory levels and locations
4. Manage the size of queues required within the distribution
a. Review input/output analysis (I/O), network to support supply and
capacity, load, and open orders demand plans
b. Determine and implement 5. Monitor key performance indicators
prioritization rules (KPIs) of the distribution network
5. Manage exceptions to maintain valid (examples include: level of service, on-
plans; evaluate variances to standard time schedule performance, lead time,
performance; and determine inventory turns, safety stock levels,
performance process stability, process stockouts, and customer satisfaction)
capability, and theoretical and
demonstrated capacity B. Manage customer orders
6. Manage the control process through
established standards and procedures 1. Monitor inventory availability and lead
in support of the organization’s goals time in support of sales, marketing,
7. Authorize backflush/inventory release and customer service level goals
2. Monitor open customer orders
D. Schedule incoming materials (backlog) to meet on-time delivery
goals
1. Generate supplier authorization to 3. Expedite past due customer orders
ship on blanket purchase orders (backorders) considering resource
24 ©APICS
availability, and cost and service time, standardized work, leveling
tradeoffs workload, total productive
maintenance (TPM), single-minute
C. Manage reverse logistics exchange of die (SMED), quick
changeover)
1. Review reverse logistics needs as part 3. Improve relationships with customers
of the distribution network design and suppliers (examples include: voice
2. Consider the use of alternate of the customer (VOC), supplier audit
providers to meet reverse logistics and certification, and supplier
needs (examples include: third-party feedback)
logistics providers (3PL) and bricks- 4. Conduct value stream mapping to
and-mortar locations for returns) better understand processes
3. Develop policies around the waste 5. Utilize A3 problem solving to manage
product hierarchy process improvement projects
6. Improve workflow and work area
References: 1; 4 (chapters 2, 7-10, 12); 5 design (examples include: five Ss (5s),
(chapters 1-4, 7, 9-10, 12-15); 7 (chapters 8, automation, visual management,
11-13); 11; (chapters 3, 7, 14-16); 12 andon, and layouts)
(chapters 1, 4) 7. Undertake structured problem-solving
processes (examples include: plan-do-
VIII. Manage Quality, Continuous Improvement, check-act (PDCA) and six sigma)
and Technology 8. Monitor process performance and
reduce variation using statistical
A. Manage quality process control (SPC) methods to
manage common, assignable, and
1. Consider the impact of processes and special cause variation (examples
their outputs on internal and external include: P charts, X-bar charts, R
customers, and on corporate charts, and capability indices)
sustainability goals
2. Review costs related to quality C. Manage technology
3. Review processes and outputs utilizing
appropriate quality tools (examples 1. Develop technology systems
include: basic seven tools of quality requirements or specifications to
(B7) and seven new tools of quality support company goals
(N7)) to identify process problems and a. Determine current and ideal state
their root causes utilizing appropriate tools
4. Undertake internal and external (examples include: flowcharts,
benchmarking for process benchmarking, and process
improvement mapping)
b. Identify gaps, system limitations,
B. Manage continuous improvement costs, process knowledge needed,
and human resource (HR) policies
1. Utilize lean concepts and undertake to be considered
process improvements (examples 2. Support technology implementation
include: kaizen events, reduction of a. Demonstrate need for ideal state
waste and non-value-added activities, to be achieved, consider tradeoffs
throughput improvement, process and resource availability, assign
flexibility, inventory reduction, and ownership, and utilize project
one-piece flow) management tools
2. Utilize lean tools (examples include:
pull systems, scrum, kanban, takt
CPIM Exam Content Manual 25
b. Perform group problem-solving
exercises and computer
simulations
3. Maintain technology systems
a. Emphasize the necessity of testing
and use of restrictions
b. Determine impacts and use
tradeoffs to minimize risks
c. Develop prioritization techniques
and communication skills
d. Manage integrity of master data
4. Adopt emerging technologies as
appropriate for competitive advantage
(examples include: artificial
intelligence (AI), Internet of Things
(IoT), 3D printing, augmented reality,
robotic process automation (RPA), and
machine learning)
26 ©APICS
Key Terminology
An understanding of the following list of terms is recommended. The candidate is also expected to
be familiar with the definitions of all terms, tasks, and examples included in the content outline.
Definitions of these terms can be found in the APICS Dictionary, 16th edition. Definitions for those
terms followed by an asterisk (*) below are included in the supplemental glossary listed below the
key terms.
In studying for the APICS CPIM certification, candidates may discover multiple terms used to denote
the same technique. Examples of this include “sales and operations planning (S&OP)” versus
“production planning” and “master production schedule (MPS)” versus “master schedule.” ASCM
and the certification exam subcommittees have attempted to provide consistency across all exams
with recognized and preferred terminology. However, synonyms are often used by authors in the
various references used to compile the body of knowledge.
28 ©APICS
Supplemental Glossary Personal protective equipment (PPE) - Items
worn by a user to protect against or minimize
exposure to hazards or risks, including
The following key terms are not found in the
physical impact, electricity, heat, chemicals,
APICS Dictionary, 16th edition, so definitions
biohazards, and airborne particulate matter.
have been provided below.
Product road map - A plan that communicates
Carbon handprint - A measure of how much
the product portfolio of offerings and product
carbon emissions have been avoided by a
lifecycles over time. The product road map
person, organization, building, or operation by
serves to detail product offerings, product
replacing baseline solutions with more
manufacturing, and execution plans, and it
environmentally responsible ones.
should tie to customer expectations and
marketing plans.
Configure-to-order (CTO) - A production
environment where a good or service is
Robotic process automation (RPA) - The use of
determined at order entry by customers who
software robots (also referred to as “bots”) to
select from a pre-defined list of features,
emulate human execution of repetitive, pre-
options, and attributes. The key components
defined business processes.
(bulk, semi-finished, intermediate,
subassembly, fabricated, purchased, packing,
and so on) used in the assembly or finishing
process may be planned and usually stocked
in anticipation of a customer order or only
after receipt of the customer order. Receipt of
a customer order initiates assembly of the
customized product. This strategy is useful
where a large number of end products (based
on the selection of options and accessories)
can be configured from common components.
Syn: assemble-to-order (ATO). See: make-to-
order (MTO), make-to-stock (MTS).
Read each question, select an answer, and check your response with the explanation on pages 33-
34.
1. A make-to-order (MTO) organization competing on delivery speed would consider which of the
following factors to have a significant impact on its competitive position?
4. Use the following purchase cost data for product Z to answer the question below.
If this company is using a weighted average costing method and 100 units were sold on
January 8, what is the cost per unit for the sale?
(A) $8.00
(B) $9.17
(C) $10.00
(D) $10.09
30 ©APICS
5. The forecast interval would typically be longest for forecasts used as inputs to which of the
following processes?
6. Which of the following factors is significant in determining the level of work-in-process (WIP)
inventory when a pull system is employed?
7. A manufacturing facility is considering adopting cellular flow. Which of the following factors is
most important to consider?
8. In a distribution environment, which of the following outcomes will occur if the planner fails to
address exception messages during the planning cycles?
Period 1 2 3 4 5
Forecast 10 22 20 24 28
Customer orders 5 26 15 6 30
Projected available balance
Available-to-promise (ATP)
Master production schedule (MPS) 30 30
(A) 22 units
(B) 24 units
(C) 35 units
(D) 37 units
10. The chart below shows the gross requirements for an item in a material requirements planning
(MRP) system. Stock on hand is 500 units, and there are no current scheduled receipts. The
item has a lead time of four periods and is being ordered lot-for-lot (L4L). What would be the
correct planned order release(s) for the item?
32 ©APICS
Answers to Sample Questions
Note: References to the content outline appear in parentheses.
1. D (I.B) - As customer demand shifts, the organization may find itself with capacity in excess or
less than required. Answer A would impact the amount of inventory the company keeps, but it
should not have an impact on the delivery speed. Answer B would have an impact on the cost
but not the delivery. Answer C also does not impact product delivery.
2. C (III.D) – Forecasts are usually wrong; therefore, every forecast should include an estimate of
error. A is incorrect because forecasts are more accurate for families or groups. B is incorrect
because forecasts are not used for dependent demand items. D is incorrect because forecasts
are more accurate for near-term periods.
3. D (VI.A) – According to the theory of constraints (TOC), D is the best answer since improving the
throughput of the bottleneck improves the throughput of the total system. C is wrong because
cycle time should be decreased, not increased, in order to improve throughput. The increased
production throughput will increase the load on some non-bottleneck operations (B), but this is
a secondary effect and not an adjustment. Improving the performance of the constraint may
have effects on work-in-process (WIP) inventory (A), but this may go either way.
4. D (V.C) – D is correct because this is the weighted average on January 8. A is incorrect because
this is the last cost paid for each item. B is incorrect because it uses the cost of inventory after
January 10, but the inventory is used on January 8. C is incorrect because it is the first in, first
out (FIFO) cost of the product.
5. A (III.D) - Business planning is performed at the highest level of aggregation and over the
longest horizon, and it would typically be done for fiscal quarters or years. Answers B, C, and D
refer to processes that would have shorter horizons and intervals.
6. B (V.A) - The level of work-in-process (WIP) inventory when a pull signal is employed is a
function of the number of pull signals and the quantity represented by each pull signal. A, C,
and D are incorrect. Shop orders (A) are characteristic of a push system and are not relevant in
a pull system. The number of workstations (C) in the process determines the minimum WIP
level, but it does not determine the total WIP level. The takt time (D) determines the rate at
which the process needs to operate, but it does not determine the WIP level.
7. D (VIII.B) - D is correct because cellular manufacturing layout works best when the production
schedule is stable. An unstable production schedule will cause disruptions to flow, especially in
a cellular manufacturing strategy. A is incorrect because shipping methods are not related to
the manufacturing layout. B is incorrect because a mature product line does not ensure that
one has a stable production schedule. C is incorrect because one can implement a cellular flow
strategy regardless of where suppliers are located; raw material inventory in front of the cell
can buffer against long lead times from the supplier.
10. A (IV.C) – A is correct because more supply is needed based upon the net requirements. In this
case, 100 more units are needed in Period 5. There are 100 units left over from Period 4, but that
is 100 units less than the gross requirements of 200 units in Period 5. Given the L4L lot size, the
net requirement quantity is suggested as the planned order receipt in Period 5, and with a 4-period
lead time, the corresponding planned order release is suggested for Period 1. This will bring the
projected available in Period 5 to 0 units, which is acceptable when there is no safety stock
requirement. Using the same logic, the net requirement of 400 units in Period 7 leads to a planned
order release in Period 3.
B is incorrect because the lead time is 4 periods, not 1 period. C is incorrect because the question
asks for the planned order release timing, not the planned order receipts. D is incorrect in two
ways. With a L4L lot size, the planned order receipt is the current period’s net requirement, and
additional supply should not be ordered. Also, the question asks for the planned order release, not
the planned order receipt.
34 ©APICS
Thank you for your interest in the APICS CPIM certification program. For any questions regarding the
content found in this Exam Content Manual, please contact ASCM customer relations at 1-800-444-
2742 or 1-773-867-1777 or [email protected].