Cpim 8 Ecm

VERSION 8.
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.
©2022 APICS, Inc.
8430 West Bryn Mawr Avenue

Suite 1000
Chicago, IL 60631-3439 USA
Phone: 1-800-444-2742 or +1-773-867-1777
Fax: +1-773-639-3000
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
CPIM Exam Content Manual i

Letter to Candidates Because organizations operate in a changing
and challenging international supply chain
environment, the ASCM body of knowledge
Dear Candidate:
continues to grow and include recognized
concepts and tools for improved
Thank you for choosing the Certified in
organizational competitiveness and
Planning and Inventory Management (CPIM)
effectiveness. The CPIM Exam Content
program to assist you in your career
Manual (ECM) is regularly updated to reflect
development and continuing education in
changes in the body of knowledge by
supply chain management.
surveying the industry to validate how the
industry is evolving to meet the rigorous needs
For almost 50 years, the CPIM program has
of today’s supply chain professionals and
been recognized as the international standard
assist candidates in their understanding of the
for individual assessment in the field of supply
scope of how their jobs fit into their company’s
chain management as it relates to the
operations management. It is interesting to
transformation of products and services.
note that the supply chain industry is getting a
However, CPIM is an ever-evolving body of
lot of attention in mainstream media. It is now
knowledge. While many of the topics remain
becoming obvious that a well-designed supply
the same, there are several new topics that
chain offers some resilience and a poorly
have come into the body of knowledge in
designed one can cripple an organization, if
recent years including some planning
not the economy, at a macro level.
methods for differing products and
services. Although there is no single “one-size-
fits-all” planning method for all products and The APICS CPIM program utilizes one exam
services, we believe that the CPIM program’s where we see these concepts in action and
comprehensive content and expansive body of how these affect the firm’s ability to compete
knowledge will help you discover the best in the marketplace and how it can help or hurt
approaches for each unique environment. national and international economies.
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.
CPIM Exam Content Manual 1

We wish you success in your pursuit of CPIM
certification.
William R. Leedale, CPIM-F, CIRM, CSCP, CLTD

Certification Committee Chair
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

before you begin to answer any questions. Read use this scale for communicating scores to
each question carefully and thoroughly. If a candidates. Using a scale is a testing industry
question includes a table or graph, be sure to best practice and allows scores to be
study it before answering the question. Avoid represented consistently across different
assuming that information is not provided, forms or versions of the same exam. This
assuming that you know what is being asked accounts for variances in difficulty across
without reading the question completely, or different exam forms and ensures fairness
“second-guessing” the question. Every effort has and accurate reporting to candidates. For
been made to avoid misleading wording and to more information on Scaled Scoring, please
provide sufficient information for each question. see the following document.
Choose the best answer from the choices

given. Care has also been taken to avoid
Studying for the APICS
misleading choices. Do not look for hidden CPIM Exam
tricks or exceptions to the norm. For each
multiple-choice question, one and only one of APICS offers several resources to help
the answer choices represents the correct individuals prepare for the APICS CPIM exam.
answer.
APICS CPIM References
Once you begin the test, approach the CPIM Content Outline. The CPIM content
questions in order, but do not spend too much outline provided in this ECM should be
time on those that are unfamiliar or seem considered a primary resource for exam
difficult to you. Go on to the other questions preparation. It provides an overview of the
and return later to the ones that are difficult major topics included in the exam, as well as a
for you. If you have some knowledge about a list of the concepts relevant to that topic.
particular question, you may be able to
eliminate one or more choices as incorrect. Bibliography. The APICS CPIM Examination
Your score on the test will be based on the Subcommittee have identified a number of
number of questions you answer correctly with references for the APICS CPIM exam. These
no penalty for incorrect answers; therefore, it references are used by both the exam
is to your advantage to guess rather than not subcommittee and the CPIM Courseware
answer a question. Avoid changing an answer Subcommittee in the development of exam
unless you are absolutely certain that you questions and preparation materials. These
marked the wrong answer. are listed in the Bibliography section of this
manual. All of the references contain excellent
Interpreting Test Scores material that will assist in understanding the
Scoring is based on your correct responses. body of knowledge and preparing for the test.
There is no penalty for incorrect answers. The For additional information on the APICS CPIM
omission of an answer will be counted the references, visit the CPIM Exam References
same as an incorrect answer. page on the ASCM website.
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.

Job Task Analysis Exam Content versus
Courseware
The subject matter in the CPIM exam content
outline is created and validated by means of Certification has a very different purpose than
a job task analysis (JTA) study. A JTA is a education. It is to determine whether a
process of creating a survey to analyze which candidate meets a minimum set of
tasks within a specific role are most requirements in relation to a body of
important. They are used in the credentialing knowledge. Certification exams test an
industry to create and validate certification individual’s knowledge and ability to apply
programs and their content by ensuring that that knowledge to specific situations. Exam
the respective bodies of knowledge are questions frequently require the candidate to
applicable and up to date with current select the best of the four choices or complete
industry standards and trends. a calculation based on the information given.
They may also ask the candidate to illustrate
In following testing industry standards and their understanding of a concept, process, or
best practices, ASCM regularly conducts a procedure. While some exam questions may
JTA for each of its certifications. For the CPIM simply ask the candidate to demonstrate their
program, this process involves bringing recollection of knowledge from the content
together a task force of industry-specific outline, they will more often require the
professionals that represent a diverse skill candidate to apply the body of knowledge by
set in inventory management, demand evaluating and/or analyzing a scenario and
planning, materials management, master determining the best solution. These
planning, and sales and operations planning questions will frequently require the candidate
(S&OP). These professionals, under the to make finer distinctions than the exercises
guidance of a third-party psychometrician, or items presented in a review course.
work to identify the knowledge, skills, and
tasks deemed important in the practice of ASCM uses a rigorous process for creating its
planning and inventory management. These certification exams and courseware. Exams
inputs are then used to create a survey that and courseware study materials are
is distributed to supply chain professionals developed separately to maintain the integrity
globally to validate the content identified by of the exam process.
the task force. The results of this industry-
wide survey are then analyzed by the task APICS exam subcommittees define the
force, resulting in a recommendation to the contents of the exam content manual (ECM),
CPIM Exam Subcommittee for content which determines the areas that will be tested
updates. in APICS certification exams. The ECM defines
the body of knowledge that can be tested, and
The JTA process is vital to all high-stakes every exam question is linked to the ECM
certifications as it validates the existing body content. The APICS exam subcommittees also
of knowledge and identifies new topic areas select the references that will be used for
and content that is at the cutting edge of the exam development. Additionally, the exam
industry. The last JTA update for the CPIM subcommittees work with ASCM staff in the
program took place in 2019. This update was creation and maintenance of exam forms.
based on the results of a survey that was
responded to by over 2,600 industry A separate courseware subcommittee, in
professionals, representing a diverse mix of conjunction with a courseware task force,
job functions, industries, organization sizes, ASCM staff, and a third-party vendor, create
work experience, and countries of residence. the learning systems using the ECM and
recommended references.
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.
Question and answer sets for APICS exams

are written by exam subcommittee members
and other volunteers who are subject matter
experts and who have earned APICS
certifications. The exam subcommittees must
identify the specific entry in the ECM that is
being tested and one or more of the
references listed in the ECM that support the
correct answer. All exam questions and
answers are reviewed and typically revised by
APICS exam subcommittee members. Exam APICS CPIM Certification
subcommittees, ASCM Test Development
staff, and a third-party exam development Maintenance: Continuing
contractor all review the potential test Professional Development
questions for correctness of form, spelling,
and grammar. To promote professional growth and lifelong
learning, ASCM requires certification
A potential test question will be reviewed maintenance every five years with the first
multiple times before it actually appears on an five-year cycle beginning on the date the
exam. Potential test questions initially appear certification is earned.
on exams in what is referred to as pre-test
status in order to collect statistics on the CPIM-certified individuals are required to
questions. It is not until a question is deemed collect 75 certification maintenance points (or
to be statistically valid that it will appear as a 100 points for CPIM Fellows) in these five-year
scored question on an exam and count intervals to keep their certification active for
towards a test-taker’s exam score and result. an additional five years. If they do not submit
their maintenance points via the APICS
Because each test form has a limited number certification maintenance application by the
of questions, it samples representative areas maintenance due date, their certification will
of the body of knowledge as defined by the be placed into suspended status. The
ECM. While each test form is different, all individual will then have 90-days to submit
areas tested are contained within the body of their maintenance application. If an individual
knowledge as defined by the ECM. does not maintain their certification, they will
lose their certification and will be required to
The following graphic is representative of the retake and pass all necessary exams again.
relationship between the Operations
Management Body of Knowledge (OMBOK),

The Importance of Certification APICS Certified in Planning
Maintenance and Inventory Management
Maintaining your APICS CPIM certification
demonstrates one’s commitment to achieving Fellow (CPIM-F)
the highest level of professional development
and standards of excellence. The distinguishing characteristic of a Certified
in Planning and Inventory Management Fellow
The APICS CPIM certification maintenance (CPIM-F) is the willingness to share acquired
program upholds both the objectives of the knowledge with others through presenting,
APICS CPIM program and the ASCM vision to teaching, publishing, and participating in
promote lifelong learning. This flexible ASCM volunteer activities. This knowledge
program recognizes that individuals are at sharing must take place above and beyond a
various levels in their careers, come from candidate's normal job duties and be directly
many industries, have different educational related to the APICS body of knowledge.
needs and career goals, and have varying An active CPIM certification is required to be
access to continuing education. Thus, eligible for CPIM-F status. To obtain the APICS
requirements for maintaining certification can CPIM-F designation, an application form must
be met through multiple sources and a variety be completed and submitted online with the
of professional development activities. These sufficient number of points via the APICS
sources and activities are intended to help Fellow application. Points are awarded based
prepare for the challenges ahead and on the following criteria: APICS certifications
maintain a professional edge by: earned (with additional points for fellow-level
exam scoring of 320 or greater on an APICS
• preserving the currency of hard- certification exam), presentations, published
earned certification credentials, works, classroom instruction, and non-paid
• expanding your knowledge of the ASCM volunteer activities.
latest industry practices,
• exploring new technology solutions To apply for the CPIM-F certification, please
• reinforcing skills, visit ascm.org/fellow.
• improving job performance,
• demonstrating commitment to
excellence, and
• increasing competitive advantage.
In order to ensure that CPIM-certified

individuals remain up to date on industry
trends and are committed to continued
professional growth, certification maintenance
is required for their certification to remain
active.
For complete details on how to maintain your

APICS CPIM designation, please visit
ascm.org/maintenance.
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

Bibliography and References for CPIM
All test candidates should familiarize themselves with the following references for the CPIM exam.
The recommended references pertaining to the content area are listed at the end of each section of
the content outline. The references listed below can also be found online on the CPIM Exam
References page. A complimentary digital copy of the APICS Dictionary is available to ASCM
members on the online ASCM Member Benefits page. It can also be accessed on the Courses &
Downloads section of members’ My Account page.
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.

APICS Certified in Planning matter validation, the CPIM Part 1 and Part 2
version 7.0 outlines were combined into one
and Inventory Management comprehensive outline during the 2023 CPIM
Reconfiguration. As with the other APICS
CPIM Exam Subcommittee certifications, the CPIM program now utilizes a
one-exam format.
Part 1 Contributors
Tricia Kerns, EdD, MBA, LSSBB, CPIM, CLTD It is important to note that while Part 1 version
Governors State University 7.0 was geared toward assessing
Staffan Cederstrand, CPIM foundational CPIM knowledge and basic
Nexter Enterprise Applications AB terminology, Part 2 version 7.0 focused on
Lori Jones, CPIM assessing a candidate’s in-depth
Rolls-Royce understanding of these concepts through
Julius Oni, CPIM critical thinking and application of knowledge
De-Havilland Aircraft of Canada in real-world scenarios. A foundational
Eric Schaudt, CPIM-F, CSCP, SCOR-P, CLTD, understanding of concepts that were
GLA previously included in Part 1 version 7.0 is still
Northrop Grumman required, as these concepts have been
William S. Thurston, CPIM-F, CIRM, CSCP-F, integrated into the new combined version 8.0
PMP outline and key terms of this exam content
Strategic Information Group manual (ECM).
Part 2 Contributors Although the scope of the CPIM program

Andrea M. Prud’homme, Ph.D., CPIM-F, remains the same, the depth of the
CIRM, CSCP, CLTD knowledge is aligned more closely with the
The Ohio State University previous Part 2 exam content outline. The
Lu Li, CPIM CPIM version 8.0 ECM follows the format of
Bang Energy the previous Part 2 version 7.0 content
Robert Pinchot, CPIM, CSCP outline. One notable difference is that many
DuPont Specialty Products, USA previous Part 1 and Part 2 key concepts and
Jaap Stumphius, CPIM-F, CSCP, CLTD terminology are now integrated and detailed
Telio Nederland within the body of the content outline. This
Sam Terzich, CPIM change makes the content outline more
Myers-Holum, Inc. comprehensive and explicit in expected
Thorsten Zedel, CPIM knowledge, which further emphasizes the
Heraeus program’s focus on application- and scenario-
based knowledge, rather than basic
Scope of the Subject Matter definitions and terminology memorization.
Please read the introductory material in this When reviewing the exam content outline, we
manual for essential information pertaining to highly recommend that candidates carefully
the exam. This exam includes eight major review topics that are new or unfamiliar, as
subject areas, as described below. The there is a strong assumption that the
concepts included in these subject areas candidate has experience and/or knowledge
apply to manufacturing and service of basic methodologies related to planning
organizations. and inventory management.
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.
Plan and Manage Demand Plan, Manage, and Execute Detailed

This section includes the principles and Schedules
techniques used to understand the markets in This section includes the principles and
which an organization chooses to operate, the techniques used to implement the material
customer needs and expectations within those and capacity plans. This involves
markets, and how those needs and understanding and managing workflow in
expectations align with the organization’s consideration of specific capacity and
resources and business strategies. This inventory resources to facilitate the timing and
involves understanding various sources of routing through processes, including the
demand, generating forecasts using adjustment of schedules, queues, and work
appropriate tools, and systematically prioritization to meet demand and service and
monitoring and adjusting to actual demand inventory goals.
performance versus expectations.
Plan and Manage Distribution
Plan and Manage Supply This section includes the principles and
This section includes the principles and techniques used to design a distribution
techniques used to create, manage, and network considering the various investment,
maintain a master schedule of independent cost and service trade-offs, and competitive
items and the capacity plan required to priorities. This section also includes the
creation of distribution plans to support phrase “examples include.” It is important to
strategic goals, service of customer orders, note that these examples are not exhaustive
and both outbound and inbound material lists; terms and concepts found on the exam
flows. include but are not limited to the examples
listed in the outline. Additional concepts or
Manage Quality, Continuous Improvement, processes may appear on the exam if they fall
and Technology within the content area; though, they may not
This section includes the principles and be explicitly shown in the “examples include”
techniques used to evaluate products, lists.
services, and processes and improve their
efficiency, effectiveness, and productivity At the end of each major section in the CPIM
through the use of a variety of tools that content outline is a list of the references that
support organizational goals and market apply to the topics within that content area.
expectations. This section also includes the The first number corresponds to the sequence
use of appropriate technology tools and the number for the ECM references, as shown in
consideration of emerging technologies that the table within the Bibliography section on
support the supply chain processes. page 10. The specific chapter(s) within that
particular reference that support content
Exam Percentage by Content Area found within the main content area of the
The following table identifies the eight main outline can be found in the subsequent
content areas of the exam. The relative parentheses. For example, “7 (chapters 4, 8,
importance of these topics varies among 11, 14, 16)” refers to the reference,
industries, but the figures show the Introduction to Materials Management, 8th
percentage designated for each content area. edition, 2017, and chapters 4, 8, 11, 14, and
16 of that reference contain content relevant
Percentage to the subject matter within that section of the
Main Content Area outline.
of Exam
I. Align the Supply Chain to
15% I. Align the Supply Chain to Support the
Support the Business Strategy
Business Strategy
II. Conduct Sales and Operations
Planning (S&OP) to Support 9%
A. Understand the business environment and
Strategy
III. Plan and Manage Demand 9% develop corporate strategy
IV. Plan and Manage Supply 16%
1. Know and analyze the business
V. Plan and Manage Inventory 19% environment
VI. Plan, Manage, and Execute a. Scan the external environment
16%
Detailed Schedules b. Perform an industry analysis
VII. Plan and Manage Distribution 5% (examples include: five-force
VIII. Manage Quality, Continuous model, industry standards, and
11% benchmarking)
Improvement, and Technology
c. Perform an internal analysis to
identify capabilities and core
Content Outline competencies
The content outline provides an overview of d. Perform a value chain analysis to
the major content areas assessed on the identify and support activities that
CPIM exam. Each of the eight main content create customer value
areas is denoted by a Roman numeral. When e. Perform a SWOT analysis
possible, specific concepts or processes are 2. Develop and implement corporate and
listed throughout the outline, typically business unit strategies to align
included in parentheticals preceded by the
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
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
1. Identify impact and implement 1. Review product portfolio, new product

mitigation plans to support triple introduction (NPI), life cycle stages,
bottom line (TBL) and sustainability and competitive priorities
goals 2. Review demand from all sources
2. Identify, report, and verify (examples include: market, customer
sustainability metrics base, forecast, open customer orders,
3. Review sustainability guidelines service requirements, safety/buffer
(examples include: Global Reporting stock, and internal requirements)
Initiative (GRI), ISO sustainability
standards, and United Nations (UN) C. Review aggregate supply plan
Global Compact)
4. Use safety and environmental 1. Review key supply capabilities
standards to control and protect the a. Review external supply base,
organization and environment supply footprint, and capacities,
and evaluate risks
References: 1; 2 (chapters 1-9); 3 (chapters 1-8, b. Review internal supply capacities,
10-12); 4; (chapters 2, 6-8, 10-12); 5 (chapters 1- inventory status, and inventory
4, 7, 12); 6; 7 (chapters 1-2, 14, 16); 9 (chapters targets
1-10); 10 (chapters 3-6, 9); 11 (chapters 1, 3, 7, 2. Incorporate product life cycle
considerations into the supply 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
D. Reconcile portfolio, demand, supply, and B. Understand marketing and product

financial plans management considerations
1. Review different methods for 1. Influence demand to better align with

balancing supply and demand supply
a. Adjust supply (examples include: 2. Manage product configuration,
overtime, outsourcing, agility, product changes, and product life
flexibility, and temporary suppliers) cycles
b. Adjust demand (examples include: a. Utilize quality systems and tools
lead time adjustment, demand (examples include: quality function
shaping, substitutions, and deployment (QFD), voice of the
complementary products) customer (VOC), concurrent
2. Evaluate trade-offs related to different engineering, modular design, and
volume/mix combinations feature postponement)
3. Evaluate alternative supply and b. Manage engineering changes,
demand plans and associated risks effectivity plans, and revision
4. Assess the financial implications of control
the plan c. Manage the relationship between
5. Review trade-offs between customer the manufacturing environment
service levels, inventory, and backlog and product structure
levels 3. Evaluate and manage the impact of
marketing promotions on demand
References: 1; 2 (chapter 1); 4 (chapters 6, 8, including potential product/service
11); 5 (chapters 6-7); 7 (chapters 2, 5, 7-8); 9 cannibalization
(chapters 2-3); 10 (chapters 4-6); 11
(chapters 3-7, 10-11); 12 (chapters 1-5, 7) C. Review sources of demand
III. Plan and Manage Demand 1. Review demand channels (examples

include: retail, wholesale, distributor,
A. Determine customer needs and e-commerce, business-to-business
specifications (B2B), and business-to-consumer
(B2C))
1. Segment customers based on their 2. Determine independent demand
needs, business unit strategies, and (examples include: forecast, customer
required capabilities orders, service or warranty, samples,
testing, distribution or warehouse
requirements, inter-company or inter- References: 1; 4 (chapters 5, 11); 5 (chapters 5-6,
plant orders, rework, and donations) 10); 7 (chapters 4, 8, 14); 9 (chapter 4); 10
3. Determine dependent demand (chapters 5, 7-8); 11 (chapters 3-4)
D. Generate demand forecast IV. Plan and Manage Supply
1. Understand demand forecasting A. Create the master schedule

concepts
2. Review the relationship between the 1. Understand the role of master
purpose of the forecast and required scheduling in the planning and control
timeliness and accuracy of the data hierarchy
3. Review management considerations 2. Evaluate the impact of different
and trade-offs related to forecast business environments and strategies
method selection on the master scheduling process
4. Select a time horizon, time buckets, 3. Identify sources of independent
and a level of aggregation for demand to be considered in the
forecasting purposes master scheduling process
5. Apply qualitative techniques to create 4. Create the master production
forecasts (examples include: historical schedule (MPS)
analogy, panel consensus, executive a. Determine the level(s) in the bill of
opinions, Delphi method, sales force material (BOM) where the MPS
polling, and consumer surveys) should be developed based on
6. Apply quantitative techniques to production strategies (examples
create forecasts include: finished goods,
a. Apply time series decomposition subassemblies, and raw materials)
(level, trend, seasonality, and b. Review the allocation of resources
random variation) for customer order promising and
b. Use time series analysis (examples order entry (examples include:
include: moving average, weighted discrete or cumulative available-to-
moving average, and exponential promise (ATP), and capable-to-
smoothing) promise (CTP))
c. Use output from associative c. Determine sources and timing of
techniques (examples include: dependent demand
linear regression and leading d. Review current internal and
indicators) external sources of supply
5. Apply planning bills to perform two-
E. Monitor forecast performance and level or multilevel master scheduling
respond to demand variation or changes 6. Use and maintain the master schedule
a. Plan and coordinate changes in
1. Evaluate forecast performance using inventory levels, backlog, capacity,
appropriate forecast error metrics customer orders, time fences,
(examples include: bias, cumulative product and process designs, and
forecast error (CFE), mean forecast incoming supplies into the master
error (MFE), mean percent error schedule
(MPE), mean absolute deviation b. Maintain the integrity of the
(MAD), mean absolute percent error master schedule when supply or
(MAPE), demand filters, and tracking demand changes
signals) c. Measure actual performance
2. Collaborate with customers and against the master schedule
suppliers to improve forecast accuracy
3. Mitigate the bullwhip effect
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
1. Check relevant material requirements D. Create final assembly schedule (FAS)

plan input and data sources
a. Define item master data and 1. Identify sources of demand to be
inventory data as required to considered in the FAS
support the material planning 2. Create the FAS to support the demand
process (examples include: item plan
description, current usage rates, a. Review the allocation of resources
scrap/yield factor, on-hand for customer order promising
balances, and historical demand) (examples include: available-to-
b. Use MPS data to describe types, promise (ATP) and capable-to-
quantities, sources, priorities, promise (CTP))
customer orders, forecasts, and b. Review current internal and
time phasing of product demand external sources of supply
c. Define engineering data for 3. Use and maintain the FAS
product structure and a. Plan and coordinate changes in
parent/component relationships inventory levels, backlog, capacity,
(examples include: information on major customer orders, time
part interdependencies, lead fences, product and process
times, and engineering changes) designs, and incoming supplies
2. Utilize bills of material (BOMs) to into the FAS
calculate multilevel time-phased b. Maintain the integrity of the FAS
requirements and create long-range when supply or demand changes
and short-range material plans that c. Measure actual performance
support company needs and supplier against the FAS
constraints
3. Use the MRP time-phased record to E. Create and manage supplier relationships
calculate and display gross
requirements, scheduled receipts, 1. Identify capable suppliers and
projected available balances, net undertake appropriate certifications
requirements, planned order receipts, 2. Review supplier selection alternatives
planned order releases, and firm (examples include: sole, single, and
planned orders (FPO) multisourcing; domestic and foreign
4. Make decisions to facilitate material providers; and special services)
planning, establish priorities, review 3. Develop various supplier relationships
exceptions, resolve conflicts through (examples include: partnership,
strategic alliance, joint venture, continuous improvement, access to
contract manufacturing, sub- new markets, and time to market)
contracting, and transactional) 5. Apply a supplier rating system to
4. Perform supplier relationship encompass quantitative measures
management (SRM) (examples include: cost, on-time
5. Include relevant supply chain links delivery, product quality, and
(examples include: retail, distribution, environmental impact) and qualitative
and transportation companies) measures (examples include: social
6. Engage in environmentally responsible performance, workforce diversity,
purchasing human rights, labor, and
7. Apply procurement planning, new anticorruption)
product introduction (NPI), and 6. Understand effective communication
engineering change control to improve techniques, cultural differences,
supply performance commercial versus government
8. Measure supplier performance using interests, and information technology
appropriate methods (examples (IT)
include: balanced scorecard, price- 7. Use data necessary for collaboration
based metrics, time-based metrics, (examples include: risk assessments,
cost-based metrics, and quality-based technical and quality specifications,
metrics) engineering changes, supply chain
inventories, and future demand)
F. Purchase/procure goods and services
G. Monitor and manage product costs
1. Apply methods of procuring and
requesting materials and services 1. Determine the different types of
(examples include: contracts, product costs (examples include:
kanbans, blanket orders, supplier direct, indirect, overhead, fixed,
scheduling, electronic data variable, and landed costs, as well as
interchange (EDI), continuous total cost of ownership (TCO))
replenishment, purchase orders, 2. Apply appropriate costing methods
consignment, pricing agreements, that determine the cost of producing a
vendor-managed inventory (VMI), product (examples include:
outsourcing, and e-commerce) absorption, variable, job, and activity-
2. Select appropriate delivery methods based costing (ABC)) to compare
(examples include: modes of actual to planned, budgeted, or
transportation, third- or fourth-party standard costs
logistics (3PL or 4PL), cross-docking, 3. Review variances in cost through
point-of-use delivery, and direct inventory valuation and an analysis of
shipment) obsolescence, scrap/yield, rework,
3. Use supplier participation in decision- repairs, returns, and defective output
making (examples include: product 4. Measure costs related to quality
design, quality requirements, related (examples include: prevention,
technology, sustainable business appraisal, internal failure, and external
practices, and accounting processes) failure costs)
4. Define goals and benefits of the
various supplier relationships H. Manage changes and supply disruptions
(examples include: improvements in
technology, inventory levels, customer 1. Re-plan order priorities to respond to
service, quality, lead times, visibility, supply and demand changes
cost, impacts on the environment, 2. Revise lead time, lot size, safety stock
damage and loss prevention, quantity, kanban quantity, cycle times,
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
References: 1; 4 (chapters 4, 9, 11); 5 1. Determine appropriate push or pull

(chapters 3, 6-7, 9, 11, 14); 7 (chapters 3-5, item replenishment method (examples
7, 9, 14-15); 8 (chapters 2, 5); 9 (chapters 4, include: material requirements
8); 10 (chapter 9); 11 (chapters 7-10, 13-14, planning (MRP), reorder point (ROP),
16-17); 12 (chapter 5) periodic review, visual review system,
min-max system, two-bin inventory
V. Plan and Manage Inventory system, and kanban systems)
2. Based on order policy, determine lot
A. Inventory planning size and order quantities, considering
cost and service trade-offs, by using
1. Determine target inventory levels to appropriate dynamic techniques
support service and financial goals (examples include: least total cost,
a. Review the impact of sourcing least unit cost, lot-for-lot (L4L), and
risks (examples include: financial, period order quantity) or fixed
political, transportation, and techniques (examples include:
environmental) on inventory economic order quantity (EOQ) and
planning decisions fixed order quantity)
b. Understand the trade-offs in 3. Determine safety stock or days of
stocking levels, customer service, supply needs based on inventory costs
environmental impact, and and customer service level objectives
inventory accuracy targets in 4. Manage maintenance, repair, and
different business environments overhaul (MRO) inventories based on
various inputs (examples include:
mean time between failure (MTBF), transaction and data entry errors,
mean time to repair (MTTR), mean and mislabeling)
time for failure (MTFF), forecasts, and b. Review and reduce sources of loss
sales history) (examples include: shrinkage,
5. Manage inventory requiring special scrap, theft, shelf life, and
handling to comply with regulations, damage)
environmental standards, and 4. Utilize appropriate inventory
protocols of materials handling, traceability throughout the supply
personal protective equipment (PPE), chain from point of origin to final
and safety destination
a. Develop and monitor the proper
C. Monitor and manage inventory costs identification of inventory
(examples include: country of
1. Review and manage the elements of origin declaration, documentation
total carrying costs, total ordering requirements, and traceability of
costs, total stockout costs, and their inventory movement) using
trade-offs appropriate tracking techniques
2. Review inventory valuation methods (examples include: bar coding and
(examples include: first in, first out radio frequency identification
(FIFO); last in, first out (LIFO); average (RFID) tagging)
cost system; and transfer pricing) b. Ensure adherence to traceability
3. Review projected or standard cost standards (examples include: ISO
versus actual cost traceability standards and global
4. Measure and review inventory metrics trade identification number (GTIN))
(examples include: inventory turns and c. Maintain lot control and serial
days of supply) numbers
d. Adhere to product recall guidelines
D. Inventory control 5. Track in-transit inventory
a. Create and monitor advance ship
1. Manage inventory locations and notice (ASN) and delivery
quantities considering the trade-offs of information
different storage methods, flow and b. Implement and manage shipment
material handling options, and tracking technology (examples
transaction management (examples include: satellite and internet of
include: stock location systems, things (IoT))
automated storage/retrieval systems
(AS/RS), vendor-managed inventory E. Manage returns and product disposition
(VMI), and consignment)
2. Monitor inventory accuracy to support 1. Develop, manage, and review the
business objectives (examples disposition process to support
include: audit programs, physical sustainability, quality, and supply
inventory, cycle counting, and spot goals
inventory checks) a. Review the waste hierarchy
3. Address and reduce inventory (examples include: reduce, reuse,
inaccuracy and loss remanufacture, recycle, recover,
a. Review and reduce sources of and disposal)
inventory inaccuracy (examples b. Review the circular economy
include: put-away and picking implications (examples include:
errors, bill of material (BOM) company rules, regulations,
errors, registration errors, environmental standards, product
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
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
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)
References: 1; 2 (chapters 2, 6); 4 (chapter

14); 5 (chapters 8-9, 15); 7 (chapters 15-16);
8 (chapters 1-9); 9 (chapter 8); 10 (chapters
1-8, 10-15); 11 (chapter 13); 12 (chapters 3,
6-7); 13 (chapters 1-10)
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.
CPIM Key Terminology

back scheduling idle capacity
big data idle time
blockchain indented bill of material
block scheduling intangible costs
break-even analysis internal setup time
carbon footprint International Organization for Standardization (ISO)
carbon handprint* interoperation time
configure-to-order (CTO)* inventory turnover
cost-volume-profit analysis job shop scheduling
count point kit
critical ratio level schedule
critical-to-quality characteristics (CTQs) lifetime buy*
decision support system (DSS) life cycle costing
define-measure-analyze-improve-control (DMAIC) Little's Law
demand shaping low-level code
echelon manufacturing execution systems (MES)
enterprise resources planning (ERP) manufacturing order
external setup time master data*
forward scheduling master data management (MDM)*
gateway work center modular bill of material
general and administrative expenses (G&A) multilevel bill of material
group technology (GT) operations management
hazmat opportunity cost
hedge option overplanning
horizontal dependency outlier

CPIM Key Terminology
overall equipment effectiveness (OEE)

overhead allocation
pacemaker
Pareto's law
performance standard
periodic replenishment
personal protective equipment (PPE)*
phantom bill of material
picking list
planning bill of material
poka-yoke (mistake-proof)
priority planning
product family
product road map*
production activity control (PAC)
productive capacity
protective capacity
pyramid forecasting
robotic process automation (RPA)*
sales mix
Shingo's seven wastes
single-level bill of material
slack
standard time
strategic sourcing
super bill of material
surge capacity
time bucket
time-phased order point (TPOP)
total quality management (TQM)
U-lines
velocity
vertical dependency
where-used list
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).
Lifetime buy - A process for purchasing

potential discontinued components or
products to support the remaining life cycle of
a product.
Master data - An enterprise’s essential core

data consisting of basic information needed
across the enterprise to conduct business.
Master data describes the core entities of the
enterprise including products, customers,
suppliers, sites, and chart of accounts.
Master data management (MDM) - A

discipline in which business and information
technology (IT) work together to ensure the
uniformity, accuracy, completeness, relevancy,
integrity, and accountability of the enterprise’s
shared master data.
Sample Questions
The following ten questions are similar in format and content to the questions on the exam. These
questions are intended for practice and to illustrate the way questions are structured. The degree of
success you have in answering these questions is not related to your potential for success on the
actual exam and should not be interpreted as such.
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?
(A) Relocation of suppliers

(B) Increased labor costs
(C) Outsourcing of customer service
(D) Shifts in customer demand
2. Which of the following statements about forecasting is true?
(A) Forecasts are more accurate for individual products.

(B) Forecasts are most useful for items with dependent demand.
(C) Forecasts should include an estimate of error.
(D) Forecasts typically are more accurate when projected over a longer period.
3. Improving the performance of a constraint in a job shop environment will:
(A) reduce work-in-process (WIP) inventory.

(B) adjust the load of non-bottleneck operations.
(C) increase the cycle time.
(D) increase production throughput.
4. Use the following purchase cost data for product Z to answer the question below.
0 units on hand (December 27)

100 units at $10 = $1,000 (received on December 28)
10 units at $11 = $110 (received on January 3)
10 units at $8 = $80 (received on January 10)
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?
(A) Business planning

(B) Final assembly scheduling
(C) Sales and operations planning (S&OP)
(D) Master production scheduling
6. Which of the following factors is significant in determining the level of work-in-process (WIP)
inventory when a pull system is employed?
(A) Number of open shop orders

(B) Quantity of parts represented by each signal
(C) Number of workstations in the process
(D) Takt time required for the process
7. A manufacturing facility is considering adopting cellular flow. Which of the following factors is
most important to consider?
(A) Availability of shipping methods

(B) Maturity of the product line
(C) Distance to the supplier
(D) Stability of the production schedule
8. In a distribution environment, which of the following outcomes will occur if the planner fails to
address exception messages during the planning cycles?
(A) Planned orders are not converted on time.

(B) Replenishment lead times are incorrect.
(C) The statistical order point is increased.
(D) The planning horizon is too short.
9. Use the information below to answer the question.
Lead time: 2 weeks Lot size: 30 units

Demand time fence (DTF): 3 days On hand: 15 units
Planning time fence: 7 days Safety stock: 6 units
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

For the master schedule, what is the available-to-promise (ATP) for Period 4 if the discrete
method is used?
(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?
The MRP Grid

Technique
Order quantity / lot size – lot-for-lot (L4L)
On hand: 500
Safety stock: 0
Allocated quantity: 0
Low-level code: 3
Lead time: 4
Periods
1 2 3 4 5 6 7 8
Gross requirements 100 300 200 400
Scheduled receipts
Projected available 500 400 100
x Net requirements
Planned order receipts
Planned order releases
(A) 100 in Period 1, 400 in Period 3

(B) 100 in Period 4, 400 in Period 6
(C) 100 in Period 5, 400 in Period 7
(D) 500 in Period 5
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.
8. A (VII.A) - Answer A is a direct result of failing to address exception messages. Answers B, C,

and D refer to system parameters that exception messages would not address.

9. B (IV.A) - Available-to-promise (ATP) for Period 4 is based on a newly planned master production
schedule (MPS) of 30 units for that period, less the customer orders of 6 units for that period.
Because another MPS of 30 units will occur in Period 5, demand for that period is not considered
by the ATP for Period 4. Based on the explanation for the calculation for discrete ATP, Answers A, C,
and D are incorrect.
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.
The MRP Grid

Technique
Order quantity / lot size – lot-for-lot (L4L)
On hand: 500
Safety stock: 0
Allocated quantity: 0
Low-level code: 3
Lead time: 4
Periods
1 2 3 4 5 6 7 8
Gross requirements 100 300 200 400
Scheduled receipts
Projected available 500 400 100
x Net requirements 100 400
Planned order receipts 100 400
Planned order releases 100 400
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].

About APICS and ASCM
For more than 60 years, APICS certifications and training have demonstrated
a commitment to global supply chain excellence – achieved one person at a
time. APICS CPIM, CSCP and CLTD are now part of the Association for Supply
Chain Management (ASCM), the largest non-profit association for supply chain
professionals. ASCM is proud to offer the globally recognized certification
programs you’ve come to trust.

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CPIM Exam Content Manual i

CPIM Exam Content Manual 1

William R. Leedale, CPIM-F, CIRM, CSCP, CLTD

CPIM Exam Content Manual 3

Choose the best answer from the choices

CPIM Exam Content Manual 5

Question and answer sets for APICS exams

CPIM Exam Content Manual 7

In order to ensure that CPIM-certified

For complete details on how to maintain your

CPIM Exam Content Manual 9

CPIM Exam Content Manual 11

Part 2 Contributors Although the scope of the CPIM program

Plan and Manage Demand Plan, Manage, and Execute Detailed

1. Identify impact and implement 1. Review product portfolio, new product

D. Reconcile portfolio, demand, supply, and B. Understand marketing and product

1. Review different methods for 1. Influence demand to better align with

III. Plan and Manage Demand 1. Review demand channels (examples

D. Generate demand forecast IV. Plan and Manage Supply

1. Understand demand forecasting A. Create the master schedule

1. Check relevant material requirements D. Create final assembly schedule (FAS)

References: 1; 4 (chapters 4, 9, 11); 5 1. Determine appropriate push or pull

References: 1; 2 (chapters 2, 6); 4 (chapter

CPIM Key Terminology

CPIM Exam Content Manual 27

overall equipment effectiveness (OEE)

Lifetime buy - A process for purchasing

Master data - An enterprise’s essential core

Master data management (MDM) - A

(A) Relocation of suppliers

2. Which of the following statements about forecasting is true?

(A) Forecasts are more accurate for individual products.

3. Improving the performance of a constraint in a job shop environment will:

(A) reduce work-in-process (WIP) inventory.

0 units on hand (December 27)

(A) Business planning

(A) Number of open shop orders

(A) Availability of shipping methods

(A) Planned orders are not converted on time.

9. Use the information below to answer the question.

Lead time: 2 weeks Lot size: 30 units

CPIM Exam Content Manual 31

The MRP Grid

(A) 100 in Period 1, 400 in Period 3

8. A (VII.A) - Answer A is a direct result of failing to address exception messages. Answers B, C,

CPIM Exam Content Manual 33

The MRP Grid

CPIM Exam Content Manual 35

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