Cpim Ecm V7.0

VERSION 7.
EFFECTIVE DATE
March 31, 2021
EXAM CONTENT
MANUAL
APICS Certified in Planning and Inventory
Management
Exam Content Manual
Version 7.0
Visit ascm.org/ecmerrata for APICS CPIM Exam Content Manual errata.
Internet links cited in the bibliographic references can be found in a more usable format on the
APICS website at ascm.org/cpim.
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.
©2020 APICS, Inc.
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Suite 1000
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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.
Stock #09051-V70
©APICS 09051-V70
The Association for Supply Chain Management (ASCM) is the global leader in end-to-end supply chain
organizational transformation, innovation, and leadership. As the largest non-profit association for
supply chain, we are an unbiased partner connecting people around the world to the newest insights
and solutions on all aspects of supply chain. ASCM transforms enterprises and empowers people
with industry-recognized, global standards - like APICS and SCOR - to optimize their supply chains,
secure their competitive advantage, and positively impact the world.
©APICS
Acknowledgements
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
• Marilyn Helms, D.B.A., CPIM-F, CIRM, CSCP-F, CLTD-F, CQM/OE
• Staffan Cederstrand, CPIM
• Lawrence Ettkin, Ph.D., CPIM-F
• Tricia Kerns, EdD, MBA, LSSBB, CPIM, CLTD
• William Thurston, CPIM-F, CIRM, CSCP-F, PMP
• Eric Schaudt, CPIM-F, CSCP, SCOR-P, CLTD, GLA
CPIM Part 2 Exam Subcommittee Members
• Andrea Prud’homme, Ph.D., CPIM-F, CIRM, CSCP, CLTD
• Daniel Iglesias, CPIM
• Murray Olsen, CPIM-F, CIRM, CQA, CMQ/OE, CSSGB
• Jaap Stumphius, CPIM-F, CLTD
• Rosemary Van Treeck, CPIM, CIRM, CSCP
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 Examinations ...................................................................................... 3
Question Format ................................................................................................................... 3
Taking the Test ..................................................................................................................... 4
Interpreting Test Scores....................................................................................................... 4
APICS Certified in Planning and Inventory Management Fellow (CPIM-F) ........................... 4
Studying for the APICS CPIM Exams ....................................................................................... 5
APICS CPIM References ....................................................................................................... 5
Terminology .......................................................................................................................... 5
Additional Resources for APICS CPIM Candidates ................................................................ 5
APICS CPIM Learning System .............................................................................................. 6
APICS CPIM Instructor-Led Review Courses and Educational Programs ......................... 6
Job Task Analysis…………………………………………………..……………………….…………………………..6
Exam Content vs. Courseware ................................................................................................ 7
APICS CPIM Certification Maintenance: Continuing Professional Development ................. 8
The Importance of Certification Maintenance.................................................................... 8
ASCM Code of Ethics ............................................................................................................... 9
Bibliography and References for CPIM Part 1 and Part 2 ................................................... 10
Key Terminology ..................................................................................................................... 12
Supplemental Glossary .......................................................................................................... 19
APICS Certified in Planning and Inventory Management Part 1 ......................................... 20
Scope of the Subject Matter .............................................................................................. 20
APICS CPIM Part 1 Content 7.0 ......................................................................................... 21
Content Outline................................................................................................................... 21
CPIM Part 1 Sample Questions ............................................................................................. 26
APICS Certified in Planning and Inventory Management Part 2 ......................................... 28
Scope of the Subject Matter .............................................................................................. 28
APICS CPIM Part 2 Content 7.0 ......................................................................................... 29
Content Outline................................................................................................................... 29
CPIM Part 2 Sample Questions ............................................................................................. 41
Answers to Sample Questions .............................................................................................. 44
©APICS CPIM Exam Content Manual i

Letter to Candidates knowledge by surveying the industry to
validate how the industry is evolving to meet
the rigorous needs of today’s supply chain
Dear Candidate:
professionals and assist candidates in their
understanding of the scope of how their jobs
Thank you for choosing the Certified in
fit into their company’s operations
Planning and Inventory Management (CPIM)
management.
program to assist you in your career
development and your continuing education in
The APICS CPIM program utilizes two exams in
operations management.
a progression from CPIM Part 1 – which
covers the basics, including definitions and
For more than four decades, the APICS CPIM
problem solving – to advanced CPIM Part 2
program has been recognized as the
where we review these concepts in actions
international standard for individual
and how these affect the firm’s ability to
assessment in the field of operations
compete in the marketplace. It is strongly
management as it relates to transformation of
recommended that candidates complete CPIM
products and services. However, CPIM is an
Part 1 before tackling the more advanced
ever-evolving body of knowledge. While many
topics in CPIM Part 2. If you follow this
of the topics remain the same, the number of
sequence of the two exams, you will increase
exams has changed over the years to where
your understanding and probability of success.
there are now two.
Since CPIM was implemented by APICS in The following is a summary of each of the two
1973, it has continued to provide a standard APICS CPIM exams:
for individuals to evaluate their knowledge of
this ever-evolving field. APICS has APICS CPIM Part 1
administered more than 1 million exams in As the entry-level learning program, CPIM Part
over 100 countries, and more than 100,000 1 introduces the material presented in depth
professionals have earned the APICS CPIM in CPIM Part 2.
designation.
Part 1 introduces the definitions and concepts
The mission of the APICS CPIM program is to for planning and controlling the flow of
be the premier professional certification for products and services into, through, and out
supply chain and operations management. of an organization. Many of the concepts in
The CPIM exams are designed to test Part 1 are expanded upon in Part 2. Part 1
individuals in the various concepts, explains fundamental relationships among the
methodologies, terminology, and integration of various activities that may occur in the supply
topics within the supply chain and operations chain network from suppliers to customers.
management functions. ASCM has worked to This includes topics like demand
ensure that CPIM exams are consistently management, plan supply, execute supply
reliable and that the highest professional plan, inventory management, and continuous
standards are used to develop and administer improvement /quality management and
the program. technologies.
Because organizations operate in a changing APICS CPIM Part 2

and challenging international environment, CPIM Part 2 combines key concepts from the
the APICS body of knowledge continues to field of operations management. It details
grow and include recognized concepts and eight domains of operations management.
tools for improved organizational These include: align the supply chain to
competitiveness and effectiveness. The CPIM support the business strategy, conduct sales
Exam Content Manual (ECM) is regularly and operations planning to support strategy,
updated to reflect changes in the body of plan and manage demand, plan and manage
CPIM Exam Content Manual 1

supply, and managing one of the largest
components of working capital for any
company: inventory. To this we add: plan,
manage, and execute detailed schedules; plan
and manage distribution; and manage quality,
continuous improvement, and technology.
The APICS CPIM program will continue to

evolve, incorporating relevant and current
concepts and techniques into the body of
knowledge. APICS CPIM is an outstanding
educational program. ASCM relies on your
comments and suggestions to maintain and
improve the program for future candidates.
We wish you success in your pursuit of CPIM

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

Certification Committee Chair
2 ©APICS
Introduction Sufficient references are given for each topic
area that provide different approaches to
material covered in each exam and different
This Exam Content Manual (ECM) provides
styles of presenting it. Reading periodicals,
guidance for individuals preparing for the
such as SCM Now magazine and the SCM
CPIM certification examinations. The objective
Impact e-newsletter will also help you keep up
of this manual is to outline the APICS CPIM
to date about changes in the industry.
exam body of knowledge, which is organized
into two exams:
About the APICS CPIM
• CPIM Part 1 Examinations
• CPIM Part 2
Each of the two APICS CPIM exams consist of
Test-takers who strive to earn their CPIM 150 questions, of which 20 are pre-test
certification must pass both of these exams questions that do not contribute to the total
within three years to become certified. For score but are used for statistical purposes
more information on how to earn the CPIM, only. Pre-test questions are continuously
please visit the APICS Exam Handbook. introduced and evaluated statistically, as part
of an industry best practice for certification
In this manual, each exam description begins program exam development. Pre-test
with a statement on the scope of the subject questions appear similar to the scored
matter, followed by a descriptive outline of the questions and are randomly distributed
content. Key terminology and a bibliography of throughout the exam. Candidates should
suggested references are also provided. Each answer all exam questions. There is a 3 ½
exam overview concludes with sample hour time limit for each APICS CPIM exam.
questions similar to those that appear on the
examinations 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 or the APICS Exam
Handbook.
The recommended procedure for mastering
the subject matter is to: Question Format
The questions on the CPIM exams are
• review the content outline, which intended to test a candidate’s understanding
defines the scope of the material, and 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 is a list of the ask the candidate to illustrate their
references that apply to the topics in that understanding of a concept, process, or
section. The first number indicates the procedure. These questions may require the
sequence number for the reference in the examinee to make finer or more in-depth
bibliography section, and the numbers in distinctions than the exercises or items
parentheses indicate the relevant chapter(s) presented in a course. It is helpful to
within that reference. understand the various formats of questions
on the exams. For sample questions and an
Candidates should understand the definitions introduction to Technology Enhanced Items
of the key terminology and the application of (TEIs) found in the CPIM Part 1 exam, please
outlined tools, processes, and techniques. see the CPIM Part 1 Sample Questions
section. CPIM Part 2 sample questions can be

found in the CPIM Part 2 Sample Questions question, you may be able to eliminate one or
section. more choices as incorrect. Your score on the
test will be based on the number of questions
Taking the Test you answer correctly with no penalty for
Each test is designed to evaluate a incorrect answers; therefore, it is to your
candidate’s knowledge of the subject matter. advantage to guess rather than not answer a
Therefore, the key to success is a thorough question. Avoid changing an answer unless
understanding of the subject matter. All you are absolutely certain that you marked the
questions are based on the current CPIM body wrong answer.
of knowledge as defined in the exam content
manual. Interpreting Test Scores
Scoring is based on your correct responses.
When you begin each exam, read the There is no penalty for incorrect answers. The
directions carefully. Be sure you understand omission of an answer will be counted the
the directions before you begin to answer any same as an incorrect answer.
questions.
The CPIM exams scaled score range is 200 –
Read each question carefully and thoroughly. 350.
If a question includes stimulus material –
200–299: Fail
such as a table, graph, or situation – be sure
to study it before answering the question. 300–350: Pass
Avoid assuming that information is not
provided, assuming that you know what is The minimum passing score is 300. For each
being asked without reading the question exam, candidates will receive a final exam
completely, or “second-guessing” the score along with diagnostic information by
question. Every effort has been made to avoid topic area on their performance. All APICS
misleading wording and to provide sufficient exams use the above scale for communicating
information for each question. scores to candidates. Using a scale is a
testing industry best practice and allows
Choose the best answer from the choices scores to be represented consistently across
given. Care has also been taken to avoid different forms or versions of the same exam.
misleading choices. Do not look for hidden This accounts for variances in difficulty across
tricks or exceptions to the norm. For each different exam forms and ensures fairness
multiple choice question, one and only one of and accurate reporting to candidates. For
the answer choices represents the correct more information on Scaled Scoring, please
answer. For technology enhanced items (TEIs) see the following document.
present in the CPIM Part 1 exam, the
questions are designed to assess a
candidate's higher-level thinking skills and
APICS Certified in Planning
problem-solving abilities. As a result, these and Inventory Management
questions require more interaction than
selecting an answer from a set of four options;
Fellow (CPIM-F)
however, these TEIs will still have one and
The distinguishing characteristic of a Certified
only one correct response.
in Planning and Inventory Management Fellow
(CPIM-F) is the willingness to share acquired
Once you begin the test, approach the
knowledge with others through presenting,
questions in order, but do not spend too much
teaching, publishing, and participating in
time on those that are unfamiliar or seem ASCM volunteer activities. This knowledge
difficult to you. Go on to the other questions sharing must take place above and beyond a
and return to the difficult ones later. If you candidate's normal job duties and be directly
have some knowledge about a particular related to the APICS CPIM body of knowledge.
4 ©APICS
A current active CPIM certification is required specifications and the detailed topic list in the
to be eligible for CPIM-F status. To obtain the content outline. If there are any areas of
APICS CPIM-F designation, an application form weakness, the candidate should consult other
must be completed and submitted online with references as part of the test preparation
the sufficient number of points to the ASCM process.
corporate office. Points are awarded based on
the following criteria: APICS certifications CPIM Content Outlines. The content outlines
earned (with additional points for fellow-level for CPIM Part 1 and CPIM Part 2 provided in
exam scoring of 320 or greater on an APICS this ECM should be considered a primary
certification exam), presentations, published resource for exam preparation. It provides an
works, classroom teaching, and ASCM overview of the major topics included in the
volunteer activities. exam, as well as a list of the concepts relevant
to that topic.
To apply for the CPIM-F certification, please
visit ascm.org/fellow. APICS Dictionary. The APICS Dictionary is an
essential reference to the exam content
Studying for the APICS manual and APICS exams. Within the
profession, terminology varies among
CPIM Exams industries, companies, and the academic
community. The exam uses standard
APICS offers several resources to help terminology as defined in the APICS
individuals prepare for the APICS CPIM exams. Dictionary. Recognizing the terms and
understanding their definitions are essential.
APICS CPIM References
Bibliography. The APICS CPIM Examination Terminology
Subcommittees have identified a number of In studying for the APICS CPIM certification
references for the APICS CPIM exams. These exams, candidates may discover multiple
references are used by both the exam terms used to denote the same technique.
subcommittees and the CPIM Courseware Examples of this include “sales and
Subcommittee in the development of exam operations planning” versus “production
questions and preparation materials. These planning” and “master production schedule”
are listed in the Bibliography section of this versus “master schedule.” APICS and the
manual. All of the references contain excellent certification exam subcommittees have
material that will assist in understanding the worked to provide consistency with preferred
body of knowledge and test preparation. For terminology. However, synonyms are often
additional information on the APICS CPIM used by authors in the various references
references visit the CPIM Exam References used to compile the body of knowledge.
page on the website. Candidates are encouraged to be familiar with
all terms and concepts listed within the
A candidate may discover that the material outline and key terminology section, using the
covered in the chapters of one reference APICS Dictionary as the primary guide for
duplicates material covered in another definitions.
reference. Both sources are included as
references to allow candidates some
discretion in selecting test preparation
Additional Resources for
materials that they find most accessible and APICS CPIM Candidates
understandable.
In addition to the cited references, it may be
In deciding if a single reference is sufficient, helpful for you to pursue chapter-sponsored
candidates should assess their own level of courses, college courses, ASCM workshops,
knowledge against both the descriptive exam self-study courses, or courses offered by the

APICS network of international partners as a opportunities and resources, please visit
means of learning the body of knowledge ascm.org.
tested in the certification program. A wide
variety of courses and materials are available.
As with any investment, you should research
Job Task Analysis
various learning options before choosing one.
The subject matter in the CPIM exam content
APICS CPIM Learning Systems outline is created and validated by means of
The APICS CPIM Learning Systems for CPIM a Job Task Analysis (JTA) study. A JTA is a
Part 1 and CPIM Part 2 are comprehensive process of creating a survey to analyze which
professional development and certification tasks within a specific role are most
preparation programs. These self-directed important. They are used in the credentialing
programs combine print material and online industry to create and validate certification
interactive tools. This system is also offered in programs and their content by ensuring that
instructor-led formats. the respective bodies of knowledge are
applicable and up-to-date with current
The APICS CPIM Learning Systems do not industry standards and trends.
“teach the tests” and in many areas review
concepts but do not teach concepts. The In following testing industry standards and
APICS CPIM Learning Systems provide a best practices, ASCM regularly conducts a
thorough review of the subject matter, but JTA for each of its certifications. For the CPIM
they should not be used without the most program, this process involves bringing
current APICS CPIM Exam Content Manual together a task force of industry-specific
(ECM) as a means to direct the candidate’s professionals that represent a diverse skill
study. There will likely be some content in the set in inventory management, demand
APICS CPIM Learning Systems not covered by planning, materials management, master
the exam; conversely, there will likely be some planning, and sales and operations planning.
content in the exam not covered by the These professionals, under the guidance of a
learning systems. No CPIM exam questions third-party psychometrician, work to identify
are derived from the learning system. Thus, it the knowledge, skills, and tasks deemed
is essential for candidates to use the current important in the practice of planning and
ECM in their studies. inventory management. These inputs are
then used to create a survey that is
distributed to supply chain professionals
APICS CPIM Instructor-Led Review globally to validate the content identified by
the task force. The results of this industry-
Courses and Educational wide survey are then analyzed by the task
Programs force, resulting in a recommendation to the
The instructor-led formats for CPIM Part 1 and CPIM Exam Subcommittees for content
CPIM Part 2 combine the APICS CPIM Learning updates.
Systems print and online components with the
leadership of a qualified instructor; peer The JTA process is vital to all high-stakes
collaboration; networking; and a structured, certifications as it validates the existing body
set schedule to keep participants on track. of knowledge (BOK) and identifies new topic
Learn more about APICS recognized areas and content that is at the cutting edge
instructors at apics.org/recognizedinstructors of the industry. The last JTA update for the
or find local APICS partners that provide APICS CPIM program took place in 2019. This
CPIM courses at ascm.org/learning- update was based on the results of a survey
opportunities. that was responded to by over 2,600 industry
professionals, representing a diverse mix of
ASCM also offers a variety of educational job functions, industries, organization sizes,
programs. For a complete list of learning work experience, and countries of residence.
6 ©APICS
Exam Content vs. be taught or included to ensure understanding
of the body of knowledge. They also may
Courseware decide that a concept or term is adequately
covered by the definitions in the APICS
Certification has a very different purpose than Dictionary or content outlines and not cover it
education. It is to determine whether a in the course. These differences sometimes
candidate meets a minimum set of lead candidates to perceive a disconnect
requirements in relation to a body of between the courseware and the exam when,
knowledge. Certification exams test an in fact, they are both covering the same body
individual’s knowledge and ability to apply of knowledge.
that knowledge to specific situations. Exam
questions frequently require the candidate to Question and answer sets for APICS exams
select the best of the four choices or complete are written by exam subcommittee members
a calculation based on the information given. and other volunteers who are subject matter
They may also ask the candidate to illustrate experts and who have earned APICS
their understanding of a concept, process, or certification designations. The exam
procedure. While some exam questions may subcommittees must identify the specific
simply ask the candidate to demonstrate their entry in the ECM that is being tested and one
recollection of knowledge from the content or more of the references listed in the ECM
outline, they will more often require the that support the correct answer. All exam
candidate to apply the body of knowledge by questions and answers are reviewed and
evaluating and/or analyzing a scenario and typically revised by APICS exam subcommittee
determining the best solution. These members. Exam subcommittees, ASCM Test
questions will frequently require the candidate Development staff, and a third-party exam
to make finer distinctions than the exercises development contractor all review the
or items presented in a review course. potential test questions for correctness of
form, spelling and grammar.
APICS uses a rigorous process for creating its
certification exams and courseware. Exams A potential test question will be reviewed
and courseware study materials are multiple times before it actually appears on an
developed separately to maintain the integrity exam. Potential test questions initially appear
of the exam process. on exams in what is referred to as pre-test
status in order to collect statistics on the
APICS exam subcommittees define the questions. It is not until a question is deemed
contents of the Exam Content Manual (ECM), to be statistically valid that it will appear as a
which determines the areas that will be tested scored question on an exam and count
in APICS certification exams. The ECM defines towards a test-taker’s exam score and result.
the body of knowledge that can be tested, and
every exam question is linked to the ECM Because each test form has a limited number
content. The APICS exam subcommittees also of questions, it samples representative areas
select the references that will be used for of the body of knowledge as defined by the
exam development. Additionally, the exam ECM. While each test form is different, all
subcommittees work with ASCM staff in the areas tested are contained within the body of
creation and maintenance of exam forms. knowledge as defined by the ECM.
A separate courseware subcommittee, in The following graphic is representative of the

conjunction with ASCM staff and a third-party relationship between the Operations
vendor, creates the Learning Systems using Management Body of Knowledge (OMBOK),
the ECM and the recommended references. courseware / Learning Systems, ECMs, and
different exam forms.
Courseware developers and/or instructors
may believe that additional material needs to

APICS CPIM program and the APICS vision to
promote lifelong learning. This flexible
program recognizes that individuals are at
various levels in their careers, come from
many industries, have different educational
needs and career goals, and have varying
access to continuing education. Thus,
requirements for maintaining certification can
be met through multiple sources and a variety
of professional development activities. These
sources and activities are intended to help
prepare for the challenges ahead and
maintain a professional edge by:
• preserving the currency of hard-

earned certification credentials
• expanding your knowledge of the
latest industry practices
APICS CPIM Certification • exploring new technology solutions
Maintenance: Continuing • reinforcing skills
• improving job performance
Professional Development • demonstrating commitment to
excellence
The Importance of Certification • increasing competitive advantage
Maintenance
To promote professional growth and lifelong In order to ensure that CPIM certified
learning, ASCM requires certification individuals remain up to date on industry
maintenance every five years with the first trends and are committed to continued
five-year cycle beginning on the date the professional growth, certification maintenance
certification is earned. is required for their certification to remain
active.
CPIM-certified individuals are required to
collect 75 certification maintenance points (or For complete details on how to maintain your
100 points for CPIM Fellows) in these five-year APICS CPIM designation, please visit
intervals to keep their certification active for ascm.org/maintenance.
an additional five years. If they do not submit
their maintenance points via the APICS
certification maintenance application by the
maintenance due date, their certification will
lapse into suspension with additional points
required to bring the certification back to an
active status.
Maintaining your APICS CPIM certification

demonstrates one’s commitment to achieving
the highest level of professional development
and standards of excellence.
The APICS CPIM certification maintenance

program upholds both the objectives of the
8 ©APICS
ASCM Code of Ethics to age, gender, race, ethnicity,
national origin, religion, sexual
orientation, disability, language, and
When you begin the exam registration socio-economic status;
process, you will be asked to pledge to abide
• In your professional capacity, do not
by the ASCM Code of Ethics. Once certified,
engage in behavior that is harassing
you pledge to continue your education to
or demeaning to others based on
increase your contribution to the supply chain
factors, including but not limited to
management profession. After achieving the
age, gender, race, ethnicity, national
APICS CPIM designation, you pledge also to origin, religion, sexual orientation,
share your knowledge with others by disability, language, or socio-economic
participating in ASCM research and status;
educational activities at local, district,
• Adhere to this Code of Conduct and its
national, and international levels.
application to your professional work.
Lack of awareness or
The ASCM Code of Ethics is as follows:
misunderstanding of an ethical
standard is not itself a defense to a
• Maintain exemplary standards of
charge of unethical conduct;
professional conduct;
• Contact the Ethics Committee when
• Do not misrepresent your
uncertain whether a particular
qualifications, experience, or
situation or course of action violates
education to ASCM or others you serve
the Code of Conduct; and
in a professional capacity;
• Do not become the subject of public
• Respect and do not violate the United
disrepute, contempt, or scandal that
States Copyright of all ASCM
affects your image or goodwill.
materials, including but not limited to
courseware; magazine articles and
Failure to abide by ASCM Code of Ethics policy
other ASCM publications; APICS
may result in sanctions up to and including
conference presentations; and CPIM,
decertification.
CSCP, CLTD, and SCOR-P examination
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 Part 1 and Part 2
All test candidates should familiarize themselves with the following references for the CPIM exams.
The recommended references pertaining to the diagnostic 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 in the online ASCM Member Benefits section of members’ My Account page.
References Author(s) Part 1 Part 2

1 APICS Dictionary, 16th ed., 2019 APICS
X X
2 Accelerate: Building Strategic Agility for a Kotter, John P. X

Faster-Moving World, 2014
3 Crafting & Executing Strategy: The Quest for Thompson, Arthur A.,
Competitive Advantage: Concepts and Margaret A. Peteraf,
John E. Gamble, X
Cases, 22nd ed., 2019
and A. J. Strickland III
4 Designing and Managing the Supply Chain: Simchi-Levi, David,
Concepts, Strategies and Case Studies, Philip Kaminsky, and X
3rd ed., 2007 Edith Simchi-Levi
5 Distribution Planning and Control: Managing Ross, David Frederick
in the Era of Supply Chain Management, X
3rd ed., 2015
6 GRI Standards Global Reporting
X
Initiative
7 Introduction to Materials Management, Chapman, Stephen N.,
8th ed., 2017 J. R. Tony Arnold,
Ann K. Gatewood, X X
and Lloyd M. Clive
8 Lean Production Simplified: A Plain- Dennis, Pascal
Language Guide to the World’s Most X X
Powerful Production System, 3rd ed., 2015
9 Making Sustainability Work: Best Practices Epstein, Marc J.,
in Managing and Measuring Corporate and Adriana Rejc
Buhovac X
Social, Environmental and Economic
Impacts, 2nd ed., 2014
10 Managing Quality: Integrating the Supply Foster, S. Thomas
X
Chain, 6th ed., 2017
11 Manufacturing Planning and Control for Jacobs, F. Robert,
Supply Chain Management, The CPIM William L. Berry,
X X
Reference, 2nd ed., 2018 D. Clay Whybark,
and Thomas E. Vollmann
12 Operations Strategy, 5th ed., 2017 Slack, Nigel,
and Michael Lewis X
10 ©APICS
References Author(s) Part 1 Part 2
13 Technology in Supply Chain Management Pagano, Anthony M., and
and Logistics: Current Practice and Future Matthew Liotine X X
Applications, 2019
14 United Nations Global Compact: Corporate UN Global Compact
X
Sustainability in the World Economy, 2014
15 United Nations Global Compact Deloitte Touche
Management Model: Framework for Tohmatsu X
Implementation, 2010
Content outline. The content outline for each exam provides an overview of the major topics included
in that module. Each major topic is denoted by a Roman numeral and is followed by a list of the
references that are particularly relevant to that topic.
Note: At the end of each major section in the CPIM Part 1 and CPIM Part 2 content outlines 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)” means the reference, Introduction to Materials Management, 8th
edition, 2017. Chapters 4, 8, 11, 14, and 16 of that reference contain content relevant to that
subject matter.
APICS Dictionary. The APICS Dictionary, 16th edition is an essential publication that applies to the
exam content manual and exams. Within the profession, terminology varies among industries,
companies, and the academic community. Each exam uses standard terminology as defined in the
APICS Dictionary. Recognizing the terms and understanding their definitions are essential.
The APICS Dictionary is available from the APICS Bookstore. Other references can be found on the
CPIM Exam References page.

Key Terminology
An understanding of the following list of terms is recommended. This list is intended to be thorough
but not exhaustive. The candidate is also expected to be familiar with the definitions of terms
identified in the content outlines. 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” versus “production
planning” and “master production schedule” versus “master schedule.” APICS and the certification
exam subcommittees have attempted to provide consistency across both 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
Key Terminology Part 1 Part 2 Key Terminology Part 1 Part 2

action message x bottom-up replanning x
advance ship notice (ASN) x break-even point x
advanced planning and bucketless system x
scheduling (APS) x
buffer management x
advanced planning system
(APS) x bullwhip effect x
allocation x business process
reengineering (BPR) x
alternate operation x
by-product x
andon x
capable-to-promise (CTP) x
anticipation inventories x
capacity available x
assignable cause x
capacity control x
available inventory x
capacity management x
available-to-promise (ATP) x
capacity planning x
average cost per unit x capacity-constrained
average inventory x resource (CCR) x
back scheduling x carbon footprint x
backorder x x carrying cost x
backward scheduling x cash conversion cycle x
balance sheet x x cash flow x
balancing operations x cause-and-effect diagram x
bar code x central point scheduling x
batch x centralized inventory control x
big data x changeover costs x
bill of material (BOM) x chase production method x x
bill of resources x circular economy x
block scheduling x closed-loop MRP x
12 ©APICS
collaborative planning, design for manufacture and
forecasting, and assembly (DFMA) x
replenishment (CPFR) x direct costs x
common causes x direct labor x
competitive advantage x direct material x
configure-to-order (CTO)* x x discrete available-to-
consignment x promise x
constraint x discrete manufacturing x
consuming the forecast x discrete order picking x
continuous process distribution center x
improvement (CPI) x distribution warehouse x
continuous production x x downtime x
continuous replenishment x drum schedule x
contribution margin x drum-buffer-rope (DBR) x
control chart x early supplier involvement
control limit x (ESI) x
cost of poor quality x echelon x
economic order quantity
count point x
(EOQ) x
critical path method (CPM) x x electronic data interchange
critical ratio x (EDI) x
critical-to-quality employee empowerment x
characteristics (CTQs) x
employee involvement (EI) x x
cross-docking x enterprise resources
cumulative available-to- planning (ERP) x
promise x
explode x
current ratio x
external failure costs x
customer relationship
management (CRM) x external setup time x x
cycle stock x field service x
cycle time x x finished goods inventory x
data governance x finite forward scheduling x
decentralized inventory finite loading x
control x firm planned order (FPO) x
decision support system
(DSS) x five Ss x
decomposition x five whys x
decoupling inventory x fixed order quantity x
delivery lead time x fixed overhead x
demand filter x fixed-location storage x
demand lead time x fixed-position manufacturing x
demand shaping x floor stocks x
demonstrated capacity x flow processing x

flow shop x intermodal transport x
flowchart x internal failure costs x
fluctuation inventory x internal setup time x x
forecast consumption x International Organization
for Standardization (ISO) x
forward flow scheduling x
interoperation time x
forward scheduling x x
interplant demand x
functional layout x
inventory accounting x
functional product x
inventory adjustment x
Gantt chart x
inventory buffer x
gateway work center x
inventory control x
gemba x
inventory ordering system x
gemba walk x
general and administrative inventory turnover x
expenses (G&A) x jidoka x
global measurements x job costing x
global trade identification job shop scheduling x
number (GTIN) x
just in time (JIT) x
green reverse logistics x
kaizen x x
gross margin x
kit x
gross requirement x
landed cost x
group technology (GT) x
leading indicator x
hazmat x
lead-time offset x
hedge x
lean production x
hedge inventory x
lean six sigma x x
heijunka x
least changeover cost x
histogram x
level of service x
horizontal dependency x
level production method x x
horizontally integrated firm x
level schedule x
hoshin planning x
liabilities x
house of quality (HOQ) x
life cycle costing x
hybrid production method x
lifetime buy* x
idle capacity x x
Little's Law x
idle time x
load x
income statement x x
load leveling x
incoterms x
local measures x
indented bill of material x
lot-for-lot (L4L) x
infinite loading x
lot-size inventory x
intangible costs x
low-level code x
intermittent production x
make-or-buy decision x x
14 ©APICS
managerial accounting x operating expense x
manufacturing calendar x operation overlapping x
manufacturing execution operational performance
systems (MES) x measurements x
manufacturing lead time x operations management x
manufacturing order x operations scheduling x
manufacturing philosophy x operator flexibility x
manufacturing resource opportunity cost x
planning (MRP II) x
option overplanning x
mass customization x
order entry x
master data* x
order picking x
master data management
(MDM)* x order point x
master planning x order policy x
master schedule x order promising x
materials handling x order qualifiers x
materials management x order winners x
mean absolute deviation ordering cost x
(MAD) x outlier x
min-max system x outsourcing x
mixed-model production x overall equipment
mixed-model scheduling x effectiveness (OEE) x
modular bill of material x overhead x
modular design strategy x overhead allocation x
modularization x overlapped schedule x
move time x overstated master
production schedule x
muda (waste) x x
owner's equity x
multilevel bill of material x
P:D ratio x
multilevel master schedule x
pacemaker x
multisourcing x
parent item x
mura x
Pareto's law x x
muri x participative
net requirements x design/engineering x
nongovernmental pegging x
organization (NGO) x
perceived quality x
one less at a time x
performance objectives x
one-piece flow x x
performance standard x
on-hand balance x
period order quantity x
on-time schedule
performance x periodic replenishment x
open order x perishability x

perpetual inventory record x productive capacity x
personal protective productivity x
equipment (PPE)* x
product-mix flexibility x
phantom bill of material x
profit margin x
physical supply x
project management x
picking list x
projected available balance x
pickup and delivery costs x
protective capacity x
pipeline stock x
protective inventory x
plan-do-check-action (PDCA) x
protective packaging x
planned order x
pull system x
planned order receipt x
purchasing lead time x
planned order release x
push system x
planning bill of material x x
pyramid forecasting x
planning horizon x
quality at the source x
point of sale (POS) x
quality circle x
point-of-use inventory x
quality control x
poka-yoke (mistake-proof) x
quality costs x
postponement x quality function deployment
prevention costs x (QFD) x
preventive maintenance x quantity discount x
priority control x quick changeover x
priority planning x radio frequency
identification (RFID) x
problem-solving storyboard x
random variation x
process batch x
random-location storage x
process flexibility x
rated capacity x
process flow diagram x
receiving x
procurement x
record accuracy x
procurement lead time x
remanufacturing x
product differentiation x
reorder quantity x
product family x x
repetitive manufacturing x
product layout x
replenishment lead time x
product mix x x
request for quote (RFQ) x
product positioning x
requirements explosion x
product road map* x
production activity control resource planning x x
(PAC) x x resource-limited scheduling x
production line x reverse logistics x
production plan x risk management x
production planning x risk pooling x
16 ©APICS
root cause analysis x x strategic plan x
rough-cut capacity planning strategic sourcing x
(RCCP) x
subcontracting x
run time x x
substitution x
sales plan x
sunk cost x
sawtooth diagram x
super bill of material x
scatter chart x
supplier certification x
scatterplot x
supplier lead time x
scheduled receipt x
supplier partnership x
scrap factor x supplier relationship
seasonal inventory x management (SRM) x
seasonality x supplier scheduling x
self-directed work team x supply chain management x
semifinished goods x surge capacity x
service level agreement terminal-handling charges x
(SLA) x
terminals x
service parts x
theory of constraints (TOC) x
setup x theory of constraints (TOC)
setup costs x accounting x
setup time x x third-party logistics (3PL) x
Shingo's seven wastes x x throughput x
simulation x throughput time x
single-level bill of material x time bucket x
single-minute exchange of time buffer x x
die (SMED) x
time fence x
single-source supplier x
time standard x
six sigma x time-phased order point
smoothing constant x (TPOP) x
specific identification x tolerance x
split lot x total cost curve x
spread x total cost of ownership
(TCO) x
standard time x
total line-haul cost x
start date x
total productive
statistical process control maintenance (TPM) x
(SPC) x
total quality control (TQC) x
stock keeping unit (SKU) x
total quality management
stockout costs x (TQM) x
stockout percentage x traceability x
store x tracking signal x
strategic drivers x transaction channel x

transportation x yield x x
transportation inventory x
trend x
triple bottom line (TBL) x
truckload (TL) carriers x
two-bin inventory system x
two-level master schedule x
U-lines x
UN Global Compact
Management Model x
uniform plant loading x
unit cost x
unit load x
unit of measure x
United Nations Global
Compact x
unitization x
upstream x
utilization x
value added x
value analysis x
value chain analysis x
value stream x
value stream mapping x
variable cost x
variance x
velocity x
vertical dependency x
visual review system x
voice of the customer (VOC) x
wait time x
wall-to-wall inventory x
warehousing x
ways x
what-if analysis x
where-used list x
work cell x
work center x
work order x
18 ©APICS
Supplemental Glossary Product road map - A plan that communicates
the product portfolio of offerings and product
lifecycles over time. The product road map
The following key terms are not found in the serves to detail product offerings, product
APICS Dictionary, 16th edition, so definitions manufacturing, and execution plans, and it
have been provided below. should tie to customer expectations and
marketing plans.
Configure-to-order (CTO) - A production
environment where a good or service is
determined at order entry by customers who
select from a pre-defined list of features,
options, and attributes. The key components
(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 IT work
together to ensure the uniformity, accuracy,
completeness, relevancy, integrity, and
accountability of the enterprise’s shared
master data.
Personal protective equipment (PPE) - Items

worn by a user to protect against or minimize
exposure to hazards or risks, including
physical impact, electricity, heat, chemicals,
biohazards, and airborne particulate matter.

APICS Certified in Planning manufacturing environments and various
supply chain processes and layouts. The
and Inventory Management fundamentals of product costs and ways to
Part 1 measure performance and achieve
sustainable supply chains complete this
CPIM Part 1 Exam Subcommittee section.
Fundamentals of Demand Management

Marilyn M. Helms, (Chair) D.B.A., CPIM-F, encompasses recognizing and managing all
CIRM, CSCP-F, CLTD-F, CMQ/OE demands for products or services. Demand
Dalton State College management includes several major activities,
Staffan Cederstrand, CPIM all of which are primarily market driven and
Sigma Enterprise Applications AB include identifying all product and service
Lawrence Ettkin, Ph.D., CPIM-F demand in the defined markets. Demand
University of Tennessee at Chattanooga management includes forecasting, as well as
Tricia Kerns, EdD, MBA, LSSBB, CPIM, CLTD possible segmenting of markets, classifying
Governors State University customers, and identifying demand.
William S. Thurston, CPIM-F, CIRM, CSCP-F,
PMP Plan Supply includes principles and
Eric Schaudt, CPIM-F, CSCP, SCOR-P, CLTD, techniques of master scheduling. The master
GLA scheduling process creates a master
Northrop Grumman production schedule (MPS) based on input
from the sales and operation plan, the
external environment, and the internal
Scope of the Subject Matter environment. The process includes material
Please read the introductory material in this requirements planning (MRP) and then
manual for essential information pertaining to capacity requirements planning (CRP) leading
the exam. The entry-level concepts in this to the final assembly scheduling.
Exam Content Manual contain essential
information to prepare for the CPIM exams. Execute Supply Plan includes buy and make
The subject matter of CPIM Part 1 is an decisions. Buy decisions require an
introductory overview of CPIM Part 2, which understanding of sourcing, which includes
covers many of the same topics in greater supplier selection and certification along with
depth. the purchasing process to procure goods and
services. Make decisions include an
This exam includes the following six major understanding of routing and dispatching
subject areas: Supply Chain Overview, within the production process along with
Fundamentals of Demand Management, Plan managing routing and utilization in batch
Supply, Execute Supply Plan, Inventory processing.
Management, and Continuous
Improvement/Quality Management and Inventory Management requires an
Technologies. The concepts included in CPIM understanding of the function of stocks or
Part 1 apply to manufacturing and service items needed to support the production
organizations. process of the supply chain. An understanding
of determining order quantity and various
Supply Chain Overview includes basic replenishment methods, as well as tracking
business-wide concepts included in the inventory and managing distribution inventory,
definition of supply chain management along is critical to supply chain functionality.
with various perspectives to meet competitive Understanding inventory in forward supply
priorities. Marketing strategies, as well as chains, as well as in reverse supply chain
sales and operation planning, are included logistics of managing returns and recycling, is
along with coverage of the various also important.
20 ©APICS
Continuous Improvement/Quality suppliers participating in the production,
Management and Technologies is the final delivery, and sale of a product or service to
section and includes principles of continuous the consumer.
improvement techniques as well as principles
for maintaining technology systems and The supply chain satisfies the market strategy
supporting technology implementation. through a variety of business functions.
Considerations for emerging technologies that Critical factors include product volume and
support supply chain processes are also variety, customer service level, lead times,
included in this section. customization, product life cycle, costs, and
strategy.
The successful candidate will have a thorough
understanding of the basic concepts of supply A. Operational Objectives to Meet
chain management and be able to apply all Competitive Priorities
key terms, principles, and techniques
contained within the six subject areas. 1. Operating environment
a. Customer expectations
APICS CPIM Part 1 Content 7.0 b. Government regulations
The following table identifies the six main c. Economic conditions
topics of the exam. The relative importance of d. Global and domestic competitors
these topics varies among industries, but the 2. Business strategy and supply chain
figures show the percentage designated for planning
each section of the exam. a. Company vision, mission, and
values
Diagnostic Main topic Percentage b. Alignment with all functional
part of exam strategies
c. Planning of strategic buffers
Supply Chain
I 17%
Overview
B. Marketing Strategies
Fundamentals
II of Demand 10%
1. Four Ps (product, price, place, and
Management
promotion)
III Plan Supply 10% 2. Distribution channels
Execute Supply 3. Market segmentation
IV 24%
Plan
Inventory C. Fundamentals of Sales and Operations
V 30%
Management Planning (S&OP)
Continuous
Improvement / Sales and operations planning is a
Quality process to develop tactical plans that
VI 9%
Management provide management the ability to execute
and business plans and strategies to achieve
Technologies competitive advantage in the following
steps:
Content Outline
I. Supply Chain Overview 1. Update the sales forecasting reports
2. Demand planning phase
A supply chain is a global network used to 3. Supply planning phase
deliver products and services, from raw 4. Pre - S&OP meeting
materials to finished goods, to end consumers 5. Executive meeting
through a flow of information, physical
distribution, and cash. A supply chain consists
of retailers, distributors, warehouses, and
CPIM Part 1 Content 21

D. Manufacturing Strategies Note: The first number indicates the sequence
number for the reference in the bibliography
1. Make-to-stock (MTS) section, and the numbers in parentheses indicate
2. Assemble-to-order (ATO) the relevant chapters within that reference.
3. Configure-to-order (CTO)
4. Make-to-order (MTO) II. Fundamentals of Demand Management
5. Engineer-to-order (ETO)
6. Remanufacture Demand management is the function of
recognizing and managing all demands for
E. Manufacturing Processes and Layouts products or services. Demand management
includes several major activities, all of which
1. Processes include: are primarily market-driven and include
a. Flow identifying all product and service demand in
b. Intermittent production/job shop the defined markets. Demand management
c. Project includes forecasting but also involves possible
2. Layouts include: segmenting of markets, classifying customers,
a. Continuous and identifying demand.
b. Repetitive
c. Product A. Determine Customer Needs,
d. Process/functional Specifications, and Features and Create a
e. Cellular Product Roadmap
f. Fixed-position/project
1. Identifying and synchronizing market
F. Product Costs demand
2. Setting and making priorities and
1. Landed cost delivery promises
2. Standard cost 3. Collaborative planning, forecasting,
and replenishment (CPFR)
G. Key Performance Indicators (KPIs) and
Metrics B. Product Management
1. Strategic The impact on product management of

2. Tactical the operating environment depends on
3. Operational customer expectations, cumulative lead
times, inventory, sustainability, product
H. Sustainable and Socially Responsible design, and product life cycles.
Supply Chains
1. Product development principles
1. Ethical a. Product specifications and design
2. Social b. Product life cycle management
3. Sustainable (PLM)
4. Financial 2. Review marketing plan
5. Legal a. Promotion types
6. Regulatory b. Impact on demand
References: 1; 7 (chapters 1-3, 6-7, 9, 13-16); 8 C. Review Demand Types and Sources
(chapters 2-3, 5); 11 (chapters 1-3, 5, 13, 15, 17);
14; 15 1. Independent demand
2. Dependent demand
22 ©APICS
D. Forecast Demand inventory (VMI). Total acquisition costs
must be considered.
1. Principles of forecasting
2. Demand characteristics 1. Establish external supply
3. Forecasting techniques 2. Purchase/procure goods and services
a. Qualitative a. The purchasing process begins
b. Quantitative with any of the following signals:
c. Intrinsic purchase requisition, material
d. Extrinsic requirements planning (MRP)
4. Forecast error measurement output, Kanban signals, and/or
a. Bias buffer.
b. Variability b. Order processing includes defining
5. Monitor and respond to demand terms and conditions, purchase
variation order release, monitoring supplier
6. Review and/or revise forecast performance, authorizing supplier
to ship, receipt of goods, invoice
References: 1; 7 (chapters 4, 8, 11, 14, 16); approval, and purchase order
11 (chapters 1, 3-4, 7, 8, 14, 16) closeout.
3. Respond to supply disruptions/
III. Plan Supply changes
a. Supply chain conflicts and risks
Master scheduling process creates a master exist among trading partners and
production schedule (MPS) based on input must be identified, analyzed, and
from the sales and operation plan, the addressed. Some examples
external environment, and the internal include disruption of supply,
environment. synchronizing supply with demand,
minimizing inventory investment,
A. Create master production schedule (MPS) maximizing customer service, and
B. Determine rough-cut capacity managing total cost.
requirements b. An important part of execution and
C. Create material requirements plan control is focusing on quality
D. Perform capacity requirements planning assurance by measuring quality,
(CRP) monitoring process variation, and
E. Create final assembly schedule (FAS) improving process control.
F. Closing the loop 4. Measure supplier performance
References: 1; 7 (chapters 2-5); 11 (chapters 7-8, B. Make

10, 14)
This activity is the function of routing and
IV. Execute Supply Plan dispatching the work to be accomplished
through the production facility.
A. Buy
1. Flow processes
Sourcing is the process of identifying a a. Calculate takt time
company that provides a needed good or b. Authorize backflush/inventory
service. These decisions normally are release
based on supplier cost and capability by 2. Batch processes
comparison to producing the product in- a. Determine production rate or flow
house. These decisions include supplier rate
selection, certification, agreements, and b. Create production schedule,
partnerships, including vendor-managed including downtime

c. Create labor schedule and 3. Product costs, preparation costs, and
determine staffing holding costs
d. Create dispatch/priority list and 4. Lot size formulas and calculations
create work sequence to improve
efficiency E. Track in-transit inventory and monitor
e. Monitor utilization/capacity inventory location and quantities
cushion
f. Manage material routing 1. Raw materials
g. Manage queues 2. Work in process (WIP)
h. Manage bottlenecks 3. Finished goods
i. Plan for non-standard demand
(examples include samples, tests, F. Track inventory throughout the supply
engineering prototypes) chain
j. Manage exceptions
k. Create input/output control (I/O) 1. Point of origin
References: 1; 7 (chapters 1, 4-8, 14-15); 8 2. Final customer
(chapters 4, 5); 11 (chapters 10-13, 17) 3. Special handling
4. Chain of ownership
5. Recall guidelines
V. Inventory Management
6. Maintain lot control and serial
Those stocks or items used to support numbers
production (raw materials and work in process
(WIP) items), supporting activities G. Maintenance, repair, and operating (MRO)
(maintenance, repair, and operating supplies), inventories
customer service (finished goods and spare
parts), and specialized inventory. H. Manage returns, reworks, reclamation,
recycle, reuse, remanufacture, and
A. Plan inventory investment and days of product disposition
supply
I. Manage inventory accuracy audit program
1. Inventory targets
2. Functions of inventory 1. Cycle count/physical inventory
3. Basic accounting 2. Inventory classification
4. Inventory valuation methods 3. Types of inventory
5. Lead time
J. Monitor inventory turns
B. Determine safety stock
1. Cost of goods sold (COGS)
1. Establish service levels 2. Inventory turns calculations
2. Manage inventory costs and tradeoffs
K. Address inventory loss
C. Determine item segmentation (for
example, ABC classification) 1. Shrinkage
2. Scrap
D. Determine order quantity and item 3. Theft
replenishment method 4. Shelf life
5. Obsolescence
1. Push and pull methods (for example, 6. Damage
Kanban)
2. Demand patterns
24 ©APICS
L. Inventory loss strategies manufacturing/3D printing,
machine learning)
1. Company policy c. Emerging technology (examples
2. Mitigation include internet of things,
blockchain, artificial/adaptive
M. Plan and manage distribution inventory intelligence (AI))
References: 1; 7 (chapters 7, 15, 16, 25); 8
1. Distribution requirements planning (chapters 2, 5); 11 (chapter 2); 13 (chapters
(DRP) 2, 4, 5, 8-9)
2. Distribution network
3. Demand Key Terminology
4. Supply
An understanding of the list of terms in the Key
5. Current inventory levels
Terminology section of this document is strongly
6. Transit times
recommended. The list is intended to be thorough
7. Item master
but not exhaustive. The candidate is also
8. Backlog
expected to be familiar with the definitions of
References: 1; 7 (chapters 1, 4-5, 7-13, 15); 8 terms identified in the content outline. Definitions
(chapters 2,5); 11 (chapters 9-10, 13-16) of these terms can be found in the APICS
Dictionary, 16th edition.
VI. Continuous Improvement /Quality
Management and Technologies Bibliography
All test candidates should familiarize
A. Continuous Improvement themselves with the references for this exam.
The recommended references pertaining to
1. Conduct benchmarking the diagnostic areas are listed at the end of
2. Identify and eliminate waste and each section of the content outline. The first
reduce variation number indicates the sequence number for
3. Identify and implement process the reference in the Bibliography section and
improvements and utilize appropriate the numbers in parenthesis indicate the
quality tools relevant chapters within that reference. The
4. Conduct supplier audit text, Introduction to Materials Management,
5. Support sustainability (environmental, covers the majority of the material for the
financial, social) CPIM Part 1 exam. The other references
6. Manage master data provide coverage of some of the topic areas
and can enhance candidates’ understanding
B. Information, Process, and Emerging of the body of knowledge. The APICS
Technology Dictionary, 16th edition is available from the
APICS Bookstore. Other references can be
1. Develop technology systems found on the CPIM Exam References page.
requirements and specifications
2. Support technology implementation
3. Maintain technology systems
a. Information technology (examples
include enterprise resource
planning (ERP), product life cycle
management (PLM), data
analytics)
b. Process technology (examples
include robotics, additive

CPIM Part 1 Sample (D) Forecasts typically are more
accurate when projected over a
Questions longer period.
The following eight multiple-choice questions 4. Intrinsic forecast data should be based
and four technology enhanced item (TEI) on which of the following
question examples are similar in format and considerations?
content to the questions on the exam. These
questions are intended for practice and to (A) Judgment, intuition, and informed
illustrate the way questions are structured. opinions
The degree of success you have in answering (B) Economic indicators
these questions is not related to your potential (C) Shipment history
for success on the actual exam and should (D) Sales history
not be interpreted as such.
5. Which of the following approaches
Read each question, select an answer, and represents the longest planning range in
check your response with the explanation on capacity management?
pages 44-45.
(A) Capacity requirements plan
1. The shipping buffer in the drum-buffer- (B) Resource plan
rope scheduling process serves which of (C) Rough-cut capacity plan
the following functions? (D) Input/output control (I/O)
(A) It is used to create the master 6. An order of 10 components requires 16

production schedule. standard hours. How much time should
(B) It provides protection for the order be allocated if the work center has an
due date. efficiency of 80% and a utilization of
(C) It provides protection to the 80%?
constraint.
(D) It is used to release work to the (A) 22.40 hours
floor. (B) 10.24 hours
(C) 16.00 hours
2. Which of the following statements is (D) 25.00 hours
best used to understand a company's
ability to pay its bills? 7. The primary objective of a random-
location storage system is to improve:
(A) Cash flow
(B) Income (A) distribution.
(C) Balance sheet (B) kitting.
(D) Market-share (C) access to stock.
(D) use of space.
3. Which of the following statements about
forecasting is true? 8. Which of the following inventory
functions creates independence
(A) Forecasts are more accurate for between supply and the use of material?
individual products.
(B) Forecasts are most useful for items (A) Cycle
with dependent demand. (B) Transit
(C) Forecasts should include an (C) Decoupling
estimate of error. (D) Hedge
26 ©APICS
Technology Enhanced Items (TEIs) Example 3: Ordered List with Drag and Drop
Technology enhanced items (TEIs) are exam
question and answer sets that include Please use the drag and drop functionality to
specialized interactions for collecting exam answer the following question.
question response data. Different types of
TEI’s include items with multiple responses From the following options, please select the
(select all that apply), building lists / ordering sales and operations planning (S&OP) steps
processes, fill in the blank, and drag and drop. involved in the monthly planning cycle and
place them in the correct order.
The following examples were created to
familiarize exam candidates with the format of
technology enhanced items (TEIs) that can be
found on the CPIM Part 1 exam.
Example 1: Fill in the Blank
Average Current Retained Annual Cost

Inventory Inventory Earnings of Goods Sold
$200,000 $400,000 $300,000 $800,000
Given the data above, the inventory turnover

is _______ times. Please round answer to the
nearest whole number.
Example 2: Unordered List

Example 4: Ordered List with Drag and Drop
Which of the following documents must be in
agreement before payment is made to the Please use the drag and drop functionality to
supplier? Select all that apply. answer the following question.
 Bill of lading Place the 5S steps in the proper sequence for

implementation.
 Customs documentation
 Invoice
 Packing list
 Purchase order
 Purchase requisition
 Receiving report

APICS Certified in Planning Conduct sales and operations planning
(S&OP) to support strategy includes the
and Inventory Management principles and techniques used to facilitate
Part 2 communication and decision making among
various parts of an organization to support
CPIM Part 2 Exam Subcommittee business strategies. This includes the
evaluation of supply and demand at an
aggregate level and reconciliation of
Andrea M. Prud’homme (Chair), Ph.D.,
product/service portfolios, demand, supply,
CPIM-F, CIRM, CSCP, CLTD
and financial plans, considering the trade-offs
The Ohio State University
Daniel Iglesias, CPIM of available choices.
Butterball LLC
Murray Olsen, CPIM-F, CIRM, CQA, CMQ/OE, Plan and manage demand includes the
CSSGB principles and techniques used to understand
Northrop Grumman the markets in which an organization chooses
Jaap Stumphius, CPIM-F, CLTD to operate, the customer needs and
Telio Nederland expectations within those markets, and how
Rosemary Van Treeck, CPIM, CIRM, CSCP those needs and expectations align with the
organization’s resources and business
Gateway Technical College strategies. This involves understanding
various sources of demand, generating
Scope of the Subject Matter forecasts using appropriate tools, and
Please read the introductory material in this systematically monitoring and adjusting to
manual for essential information pertaining to actual demand performance versus
the exam. This exam includes eight major expectations.
subject areas, as described below. The
concepts included in these subject areas Plan and manage supply includes the
apply to manufacturing and service principles and techniques used to create,
organizations. As this is the CPIM Part 2, it is manage, and maintain a master schedule of
expected that a candidate is familiar with the independent items and the capacity plan
subject matter of the CPIM Part 1. The CPIM required to implement the schedule. These
Part 2 exam will test at a deeper level of plans are used to create, manage, and
understanding and be focused on application maintain the material requirements plan for
of the subject matter. dependent make and buy items, as well as the
final assembly schedule to support customer
Align the supply chain to support the business demand. Items that are purchased require
strategy includes principles and techniques to development of external supply sources that
understand the business environment in may represent a range of supplier
which an organization operates, to align relationships and oversight methods. An
business and functional strategies, and to important part of managing supply is
make decisions to support competitive consideration of trade-offs, material costs,
advantage in the short and long term. This and risk to ensure continuity of supply and
involves choices about resources, processes, support competitive priorities and supply
technologies, and layouts, including their chain strategy. Choices and decisions may
inherent trade-offs and how these choices vary across a product or service’s life cycle.
may change in support of different
product/service life cycle stages. Supporting Plan and manage inventory includes the
the long-term sustainability of the organization principles and techniques needed to manage
and adjustment to changing conditions inventory in support of the organization’s
requires monitoring key performance resource availability, business and functional
indicators (KPIs) and managing risk. strategies, and tactical planning. Decisions
28 ©APICS
regarding types, volumes, replenishment APICS CPIM Part 2 Content 7.0
methods, and material handling impact The following table identifies the eight main
inventory investments and availability. topics of the exam and shows the percentage
Inherent in inventory management is designated for each section of the exam. The
consideration of trade-offs between service relative importance of these topics varies
and cost. Included here is the storage and among industries, but the figures show the
tracking of inventory, as well as processes to percentage designated for each section of the
manage inventory returns for proper exam.
disposition.
Plan, manage, and execute detailed Diagnostic Main topic Percentage

schedules includes the principles and part of exam
techniques used to implement the material I Align the Supply 22%
and capacity plans. This involves Chain to Support the
understanding and managing workflow in Business Strategy
consideration of specific capacity and II Conduct Sales and 10%
inventory resources to facilitate the timing and Operations Planning
routing through processes, including the (S&OP) to Support
adjustment of schedules, queues, and work Strategy
prioritization to meet demand and service and III Plan and Manage 9%
inventory goals. Demand
IV Plan and Manage 16%
Plan and manage distribution includes the Supply
principles and techniques used to design a V Plan and Manage 14%
distribution network considering various Inventory
investment, cost and service trade-offs, and VI Plan, Manage, and 12%
competitive priorities. Creation of distribution Execute Detailed
plans supports strategic goals, service of Schedules
customer orders, and both out-bound and in- VII Plan and Manage 3%
bound material flows. Distribution
VIII Manage Quality, 14%
Manage quality, continuous improvement, and Continuous
technology includes the principles and Improvement, and
techniques used to assess the quality of Technology
goods and services and to assess,
understand, and correct deficiencies as
appropriate. Evaluating products, services,
Content Outline
and processes and improving efficiency,
effectiveness, and productivity through the I. Align the Supply Chain to Support the
use of a variety of tools supporting Business Strategy
organizational goals and market expectations.
Use of appropriate technology tools supports A. Understand the business environment and
quality and continuous improvement. develop corporate strategy
The successful candidate will have a thorough 1. Know and analyze the business
understanding of all key terms, principles, and environment
techniques contained within the eight subject a. Scan the external environment
areas and will be able to apply them, analyze b. Perform an industry analysis
situations, determine which approaches are (examples include: five-force
applicable, and recognize when to escalate model, industry standards,
issues. benchmarking)

c. Perform an internal analysis to align with strategy (examples include:
identify capabilities and core make-to-stock (MTS), assemble-to-
competencies order (ATO) / configure-to-order (CTO),
d. Perform a value chain analysis to make-to-order (MTO), engineer-to-
identify and support activities that order (ETO), remanufacturing)
create customer value 7. Align the facilities strategy with
e. Perform a SWOT analysis manufacturing / service strategies
2. Develop and implement corporate and
business unit strategies to align C. Design processes and layouts to align with
resources and create lasting strategic goals
competitive advantage
a. Define corporate mission, vision, 1. Examine the trade-offs of process
and values choices within the product-process
b. Establish competitive priorities matrix (examples include: project, job
(examples include: cost, quality, shop, batch, mass customization,
delivery, and flexibility) assembly line, repetitive, continuous
c. Evaluate key customer segments flow)
d. Incorporate key customer 2. Examine trade-offs within the service
requirements as appropriate for decision (examples include: degree of
the corporate and business unit contact, opportunity for sales, and
strategy production efficiency)
e. Determine the firm’s order winners 3. Determine layout to support product
and qualifiers and service design decisions
f. Consider vertical and horizontal (examples include: fixed position,
integration alternatives process / functional layout, cellular /
product focus, assembly line)
B. Develop, align, and implement functional 4. Align process choices and layouts with
and operational strategies product/service life cycles
1. Determine operations strategy to D. Define and monitor key performance

utilize core competencies and indicators (KPIs) to evaluate performance
available resources, manage cost, and in relation to the organization’s strategic
support company policies, as well as goals
regulatory and intellectual property
guidelines 1. Use appropriate financial metrics
2. Determine technology choices (examples include: cash-to-cash cycle
(examples include: levels of time, cash flow)
automation, cloud, and agile) to 2. Use appropriate operational metrics
improve efficiency, costs, and (examples include: customer service
organizational capabilities levels, order fill rate)
3. Perform cost-volume profit analysis, 3. Apply KPI tools (examples include: KPI
break-even analysis, target income trees, maturity assessment, SCOR
volume, and sales mix analysis to metrics, balanced scorecard)
manage costs and profitability 4. Review sales and operations planning
4. Establish lead and lag capacity (S&OP) process effectiveness
strategies
5. Support marketing strategies (Four Ps E. Identify and manage supply chain risks
– product, price, promotion, and (examples include: supply disruption,
place) financial, environmental, physical,
6. Determine the push-pull boundary and political, cyber, intellectual property, and
the manufacturing environment to branding)
30 ©APICS
1. Use supply chain mapping and event Note: The first number indicates the sequence
monitoring for risk identification within number for the reference in the bibliography
regulatory requirements to support section, and the numbers in parentheses indicate
different levels of risk tolerance the relevant chapters within that reference.
2. Assess the probabilities, timing, and
impact of potential supply chain II. Conduct Sales and Operations Planning
failures (S&OP) to Support Strategy
3. Perform risk management activities
(examples include: prevention, A. Understand the role of the S&OP process
mitigation, response, recovery, and in the organization
resiliency)
4. Use appropriate risk management 1. Review the role of S&OP in the
tools and guidance (examples include: planning and control hierarchy
failure modes and effects analysis 2. Understand the impact of different
(FMEA) and ISO risk management business environments on the S&OP
standards) process (examples include:
manufacturing and services)
F. Manage capital equipment and facilities 3. Evaluate the involvement of various
levels of management and their roles
1. Review capital budgeting goals and in the S&OP process
performance 4. Identify the planning horizon and the
2. Implement total productive appropriate aggregation level
maintenance (TPM) 5. Implement the steps of the S&OP
3. Comply with health, safety, and process
environment 6. Review the various inputs and outputs
requirements/regulations of each of the S&OP steps
G. Define and support sustainability goals B. Review aggregate demand plan

(environmental, financial, social)
1. Review product portfolio, new product
1. Identify impact and implement introduction (NPI), life cycle stages,
mitigation plans to support and competitive priorities
sustainability goals 2. Review demand from all sources
2. Identification, reporting, and (examples include: market, customer
verification of sustainability metrics base, forecast, open customer orders,
3. Review sustainability guidelines service requirements, safety / buffer
(examples include: Global Reporting stock, internal requirements)
Initiative (GRI), ISO sustainability
standards, UN Global Compact) C. Review aggregate supply plan
4. Use safety and environmental
standards to control and protect the 1. Review key supply capabilities
organization and environment a. Review external supply base,
supply footprint, and capacities,
References: 1; 2 (chapters 1-9); 3 (chapters 1-8, and evaluate risks
10-12); 4; (chapters 2, 6-8, 10-12); 5 (chapters 1- b. Review internal supply capacities,
4, 7, 12); 6; 7 (chapters 1-2, 14, 16); 9 (chapters inventory status, and inventory
1-10); 10 (chapters 3-6, 9); 11 (chapters 1, 3, 7, targets
14-17); 12 (chapters 1-2, 4-10); 13 (chapters 1, 2. Incorporate product life cycle
2, 8, 10) considerations into the supply plan
(examples include: new product
introductions (NPI), obsolescence)

3. Develop and validate a production 2. Engage in customer relationship
plan to support the firm’s strategic management (CRM) based on
choices segmentation
4. Evaluate the resource plan to support 3. Set customer service policies, safety
aggregate supply plan stock levels, and performance targets
5. Review strategic buffers 4. Maintain effective customer
a. Identify bottlenecks communications
b. Identify other critical resource 5. Determine and monitor metrics of
constraints and supply chain risks order delivery performance
c. Determine types (examples
include: lead time, inventory, B. Understand marketing and product
capacity), size, and location of management considerations
buffers
1. Influence demand to better align with
D. Reconcile portfolio, demand, supply, and supply
financial plans 2. Manage product configuration and
product changes
1. Review different methods for a. Utilize quality systems and tools
balancing supply and demand (examples include: quality function
a. Adjust supply (examples include: deployment (QFD), voice of the
overtime, outsourcing, agility, customer (VOC), concurrent
flexibility, temporary suppliers) engineering, modular design, and
b. Adjust demand (examples include: feature postponement)
adjusting lead time, influencing b. Manage engineering changes,
demand, substitutions, effectivity plans, and revision
complimentary products) control
2. Evaluate trade-offs related to different c. Manage the relationship between
volume/mix combinations the manufacturing environment
3. Evaluate alternative supply and and product structure
demand plans and associated risks 3. Review marketing promotions
4. Assess the financial implications of a. Evaluate the impact on demand
the plan including potential product /
5. Review trade-offs between customer service cannibalization
service levels, inventory, and backlog b. Manage the promotion life cycle
levels
C. Review sources of demand
References: 1; 2 (chapter 1); 4 (chapters 6,8,11);
5 (chapters 6, 7); 7 (chapters 2, 5, 7, 8); 9 1. Review demand channels (examples
(chapters 2, 3); 10 (chapters 4-6); 11 (chapters 3- include: retail, wholesale, distributor,
7, 10-11); 12 (chapters 1-5, 7) e-commerce, business-to-business
(B2B), and business-to-consumer
III. Plan and Manage Demand (B2C))
2. Determine independent demand
A. Determine customer needs and (examples include: forecast, customer
specifications orders, service or warranty, samples,
testing, distribution or warehouse
1. Segment customers based on requirements, inter-company or inter-
business unit strategies and required plant orders, rework, and donations)
capabilities 3. Determine dependent demand
32 ©APICS
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. Review the role of master scheduling
purpose of the forecast and required in the planning and control hierarchy
timeliness and accuracy of the data 2. Evaluate the impact of different
3. Review management considerations business environments, including
and trade-offs related to forecast manufacturing and services, on the
method selection master scheduling process
4. Select a time horizon and interval and 3. Identify sources of independent
a level of aggregation for forecasting demand to be considered in the
purposes master scheduling process
5. Apply qualitative techniques to create 4. Create the master production
forecasts (examples include: historical schedule (MPS)
analogy, grassroots forecasting, panel a. Determine the level in the bill of
consensus, executive opinions, Delphi material (BOM) where the MPS
method, sales force polling, and should be developed based on
consumer surveys) production strategies (examples
6. Apply quantitative techniques to include: finished goods, sub-
create forecasts assemblies, and raw materials)
a. Use time series analysis (examples b. Review customer order promising
include: moving average, weighted (examples include: available-to-
moving average, seasonal indexes, promise (ATP) and capable-to-
trend projections, exponential promise (CTP))
smoothing) c. Determine sources and timing of
b. Use output from associative dependent demand
techniques (examples include: d. Review current internal and
linear regression, leading external sources of supply
indicators) 5. Use and maintain the master schedule
a. Plan and coordinate changes in
E. Monitor forecast performance and inventory levels, backlog, capacity,
respond to demand variation or changes customer orders, time fences,
product and process designs, and
1. Evaluate forecast performance incoming supplies into the master
compared to actual demand schedule
2. Measure forecast error using b. Maintain the integrity of the
appropriate metrics (examples master schedule when supply or
include: bias, cumulative forecast demand changes
error (CFE), mean forecast error (MFE), c. Manage the consequences of an
mean percent error (MPE), mean unrealistic master schedule
absolute deviation (MAD), mean 6. Measure actual performance against
absolute percent error (MAPE), the master schedule
tracking signals)
3. Collaborate with customers and B. Perform rough-cut capacity planning
suppliers to improve forecast accuracy (RCCP)
4. Mitigate the bullwhip effect
1. Review capacity requirements and the
References: 1; 4 (chapters 5,11); 5 (chapters 5, 6, impact of the RCCP on supply
10); 7 (chapters 4, 8, 14); 9 (chapter 4); 10 2. Identify and manage critical work
(chapters 5, 7, 8); 11 (chapters 3-4) centers to support the MPS

3. Develop work center efficiency and 7. Engage closed-loop integration with
utilization goals and monitor master planning, final assembly, and
performance configuration processes to ensure
4. Incorporate maintenance schedules in material availability matches demand
capacity planning quantities, timing, and priorities
C. Manage the material requirements plan D. Create final assembly schedule (FAS)
1. Check relevant MRP input and data 1. Identify sources of demand to be

sources considered in the FAS
a. Define inventory data as required 2. Create the FAS to support the demand
to support the material planning plan
process (examples include: item a. Review customer order promising
description, current usage rates, (available-to-promise (ATP) and
stock balances, and historical capable-to-promise (CTP))
demand) b. Review current internal and
b. Use MPS data to describe types, external sources of supply
quantities, sources, priorities, 3. Use and maintain the FAS
customer orders, forecasts, and a. Plan and coordinate changes in
time phasing of product demand inventory levels, backlog, capacity,
c. Define engineering data for major customer orders, time
product structure and fences, product and process
parent/component relationships designs, and incoming supplies
(examples include: information on into the FAS
part interdependencies, lead b. Maintain the integrity of the FAS
times, and engineering changes) when supply or demand changes
2. Utilize bills of material (BOM) to c. Manage the consequences of an
calculate multilevel time-phased unrealistic FAS
requirements and create long-range 4. Measure actual performance against
and short-range material plans that the FAS
support company and supplier needs
3. Use the MRP time-phased grid to E. Create and manage supplier relationships
display gross requirements, scheduled
receipts, projected available, net 1. Identify capable suppliers and
requirements, planned order receipts, undertake appropriate certifications
and planned order releases 2. Develop various supplier relationships
4. Make decisions to facilitate material (examples include: partnership,
planning, establish priorities, review strategic alliance, joint venture,
exceptions, resolve conflicts through contract manufacturing, sub-
pegging relationships, and support contracting, and transactional)
other decisions and productivity 3. Review supplier selection alternatives
measures based on the type of (examples include: sole, single,
environment and product life cycles multiple sourcing, domestic and
5. Monitor system feedback mechanisms foreign providers, and special
to enable the appropriate actions services)
necessary to balance supply and 4. Include relevant supply chain links
demand (examples include: retail, distribution,
6. Use various safety policies to minimize and transportation companies)
the impact of uncertainty on the 5. Engage in environmentally responsible
planning process purchasing to minimize the impact of
the supply chain on the environment
34 ©APICS
6. Review the effect of procurement 6. Understand effective communication
planning, new product introduction techniques, cultural differences,
(NPI), and engineering change control commercial versus government
on supply performance interests, and information technology
7. Measure supplier performance using 7. Use data necessary for collaboration
appropriate methods (examples (examples include: risk assessments,
include: balanced scorecard, price- technical and quality specifications,
based metrics, time-based metrics, engineering changes, supply chain
cost-based metrics, quality-based inventories, and future demand)
metrics)
G. Monitor and manage product costs
F. Purchase/procure goods and services
1. Apply appropriate costing methods
1. Apply methods of procuring materials that determine the cost of producing a
and services (examples include: product (examples include:
contracts, kanbans, blanket orders, absorption, variable, activity-based
purchase orders, consignment, pricing costing (ABC), and job costing) to
agreements, vendor-managed compare actual to planned, budgeted,
inventory (VMI), outsourcing, and e- or standard costs
commerce) 2. Review variances in cost through
2. Select appropriate delivery methods inventory valuation and an analysis of
(examples include: traditional modes obsolescence, scrap, rework, repairs,
of transportation, third- or fourth-party returns, and defective output
logistics (3PL or 4PL), cross-docking, 3. Measure costs related to quality,
point-of-use delivery, and direct including internal and external failure,
shipment) appraisal, and prevention costs
3. Use supplier participation (examples 4. Eliminate non-value-added activities
include: product design, quality
requirements, related technology, H. Manage changes and supply disruptions
sustainable business practices, and
accounting processes) 1. Re-plan order priorities to respond to
4. Define goals and benefits of the supply and demand changes
various supplier relationships 2. Revise lead time, lot size, safety stock
(examples include: improvements in quantity, kanban quantity, cycle times,
technology, inventory levels, customer and other parameters to reflect
service, quality, lead times, visibility, product life cycles, current conditions,
value-chain forecasting, cost, impacts and company strategy
on the environment, damage and loss 3. Utilize what-if analysis and simulation
prevention, continuous improvement, to evaluate viable alternatives before
access to new markets, and time to changing the existing material plan
market) 4. Monitor buffer status
5. Apply a supplier rating system to
encompass quantitative measures I. Conduct product life cycle management
(examples include: cost, on-time (PLM)
delivery, product quality, and
environmental impact) and qualitative 1. Develop new product introduction
measures (examples include: social (NPI) schedule
performance, workforce diversity, a. Create a prototype schedule in
human rights, labor, and consideration of supply and
anticorruption) demand plans

b. Review supply constraints that min–max system, two-bin inventory
may impact the NPI schedule system, and kanban systems)
2. Develop an end-of-life plan 2. Use appropriate dynamic techniques
a. Review lifetime buy quantities and (examples include: least total cost,
timing least unit cost, lot-for-lot (L4L), period
b. Review obsolescence timing order quantity) or fixed techniques
c. Review minimum order quantity (examples include: economic order
requirements from suppliers and quantity (EOQ) and fixed order
for customers quantity) to determine lot size and
order quantities, considering cost and
References: 1; 4 (chapters 4, 9, 11); 5 (chapters service trade-offs
3, 6-7, 9, 11, 14); 7 (chapters 3-5, 7, 9, 14-15); 8 3. Determine safety stock or days of
(chapters 2,5); 9 (chapters 4, 8); 10 (chapter 9); supply needs based on inventory costs
11 (chapters 7-10, 13-14, 16-17); 12 (chapter 5) and customer service level objectives
4. Manage maintenance, repair, and
V. Plan and Manage Inventory overhaul (MRO) inventories based on
various inputs (examples include:
A. Inventory planning mean time between failure (MTBF),
mean time to repair (MTTR), mean
1. Determine target inventory levels to time for failure (MTFF), forecasts, and
support service and financial goals sales history)
a. Review the impact of sourcing 5. Manage special inventory (examples
risks (examples include: financial, include: temperature-controlled,
political, transportation, and hazardous materials) to comply with
environmental) on inventory regulations, environmental standards,
planning decisions and protocols of material handling,
b. Understand the trade-offs in personal protective equipment (PPE),
stocking levels, customer service, and safety
environmental impact, and
inventory accuracy targets in C. Monitor and manage inventory costs
different business environments
2. Understand the types and 1. Review and manage the elements of
classifications of inventory (examples total carrying costs, total ordering
include: raw materials; work in costs, total stock-out costs, and their
process (WIP); finished goods; trade-offs
maintenance, repair, and operating 2. Review inventory valuation methods
(MRO) supplies; returned goods; (examples include: first in, first out
excess; inactive; obsolete; scrap; (FIFO); last in, first out (LIFO); transfer
distressed; and perishable inventory) pricing)
3. Determine item segmentation 3. Review projected or standard cost
(examples include: ABC classification, versus actual cost variances
perishability, hazardous materials, 4. Measure and review inventory metrics
special handling, supply risk, customer (examples include: inventory turns and
risk) days of supply)
B. Inventory management D. Inventory control

1. Determine push or pull item 1. Manage inventory location and
replenishment method (examples quantities considering the trade-offs of
include: material requirements different storage methods, flow and
planning (MRP), reorder point (ROP), material handling options, and
periodic review, visual review system,
36 ©APICS
transaction management (examples E. Manage returns and product disposition
include: stock location systems,
automated storage/ retrieval systems 1. Review the waste hierarchy and
(AS/RS), vendor-managed inventory circular economy implications
(VMI), and consignment) (examples include: company rules,
2. Monitor inventory accuracy to support regulations, environmental standards,
business objectives (examples product costs, ownership, lead times,
include: audit programs, physical material handling)
inventory, cycle counting, and spot 2. Develop and manage reverse logistics
inventory checks) processes around the waste hierarchy,
3. Address and reduce inventory considering company acceptance
inaccuracy and loss guidelines, regulatory requirements,
a. Review and reduce sources of recall guidelines, and customer
inventory inaccuracy (examples expectations
include: put-away and picking 3. Develop, manage, and review the
errors, bill of material (BOM) disposition process to support
errors, registration errors, sustainability, quality, and supply
transaction and data entry errors, goals
and mislabeling)
b. Review and reduce sources of loss References: 1; 4 (chapters 2, 6, 15); 5 (chapters
(examples include: shrinkage, 6-9, 12); 7 (chapters 1, 7, 9-13, 15); 8 (chapter
scrap, theft, shelf life, damage) 5); 11 (chapters 10, 12-13, 16)
4. Utilize inventory traceability
throughout the supply chain from VI. Plan, Manage, and Execute Detailed
point of origin to final destination Schedules
a. Develop and monitor the proper
identification of inventory A. Plan detailed schedules
(examples include: country of
origin declaration, documentation 1. Determine production rates or flow
requirements, and traceability of rate
inventory movement) using a. Calculate load from planned and
appropriate tracking techniques released orders, repetitive
(examples include: bar coding and schedules, past-due orders,
radio frequency identification rework orders, and work in
(RFID) tagging) process (WIP)
b. Ensure adherence to traceability b. Evaluate throughput by measuring
standards (examples include: ISO efficiency, utilization, productivity,
traceability standards, GS1-GTS2) takt time, cycle time, and
c. Maintain lot control and serial input/output control (I/O) metrics
numbers for purchased items and c. Manage schedules and throughput
make items in various industries, including
d. Adhere to product recall guidelines service
5. Track in-transit inventory 2. Create work sequences to improve
a. Create and monitor advanced ship efficiency, resolve supply and demand
notices (ASN) and delivery imbalances, and consider time fence
information policies
b. Implement and manage shipment a. Utilize appropriate tools to create
tracking technology (examples efficient schedules in a push
include: satellite, internet of things environment (examples include:
(IoT)) priority schedule, setup matrix,
alternate routings, and sequencing
rules)

b. Utilize appropriate tools to create environments that must
an efficient pull environment accommodate unplanned load
(examples include: mixed-model 7. Load operations and adjust for
scheduling, rate-based scheduling, capacity reductions or increases to
synchronization, and line accommodate process variability and
balancing) planned downtime
3. Manage bottlenecks utilizing theory of 8. Manage constraints and balance flow
constraints (TOC) techniques using process flow scheduling in
(examples include: improve flow, process industries in either batch or
couple and decouple operations as continuous mode
needed, and elevate the bottleneck as 9. Create labor schedules and determine
appropriate) staffing based on HR policies, labor
4. Plan non-standard demand pool, labor skills matrix, and consider
a. Identify the impact of unplanned outsourcing and contract labor
or non-standard work (examples
include: samples, tests, C. Implement and manage detailed
engineering prototypes) and schedules
quality problems on resources
b. Assess impacts of industry-specific 1. Issue production orders as scheduled
conditions on resources (examples 2. Assign labor schedules for service
include: remanufacturing, industries
byproducts, co-products, and 3. Measure actual capacity performance
recycled material) to the plan
4. Manage material routing
B. Create production schedules a. Evaluate the size of process
batches and transfer batches to
1. Evaluate the availability of theoretical, support production and inventory
demonstrated, and rated capacity plans
2. Recognize service industry specific b. Review equipment and labor
capacity characteristics to manage status, maintenance schedules,
loads (examples include: variable and their impact on the plan
arrival rates and variable processing c. Determine when alternate routings
times) should be utilized
3. Create a capacity load using 5. Manage the size of queues
scheduling techniques (examples a. Review input/output analysis (I/O),
include: infinite and finite capacity capacity load, and open orders
planning, constraint-based finite b. Determine and implement
scheduling, and load balancing) prioritization rules
4. Undertake simulation and modeling 6. Manage exceptions to maintain valid
techniques to assess viability of plans; evaluate variances to standard
various options or opportunities performance; and determine
5. Review various methods of balancing performance process stability, process
capacity and load (examples include: capability, and theoretical and
rescheduling, splitting orders, demonstrated capacity
modifying order quantities, 7. Manage the control process through
outsourcing, workforce development, established standards and procedures
and changing capacity through in support of the organization’s goals
workforce changes) and bottom line, including the use of
6. Determine and maintain safety relevant and measurable performance
capacity and capacity cushions in measures.
38 ©APICS
D. Schedule incoming materials 2. Monitor open customer orders to meet
on-time delivery goals
1. Generate supplier authorization to 3. Expedite past due customer orders,
ship on blanket purchase orders considering cost and service tradeoffs
2. Authorize vendor-managed inventory
(VMI) with key suppliers C. Manage reverse logistics
References: 1; 4 (chapters 3, 6); 7 (chapters 5-6, 1. Review reverse logistics needs as part
12-13, 15); 8 (chapter 8); 11 (chapters 10-13, of the distribution network design
17); 12 (chapters 4, 9-10) 2. Review the use of alternate providers
to meet reverse logistics needs
VII. Plan and Manage Distribution (examples include: third-party logistics
providers (3PL), bricks-and-mortar
A. Plan distribution locations for returns)
3. Develop policies around the waste
1. Determine network configuration product hierarchy of reduce, reuse,
trade-offs (examples include: total remanufacture, recycle, recover, and
costs, inventory investment, customer dispose
service, lead time, and inbound and
outbound transportation costs) References: 1; 4 (chapters 2, 7-10, 12); 5
2. Review risk management plans and (chapters 1-4, 7, 9-10, 12-15); 7 (chapters 8, 11-
sustainability considerations 13); 11; (chapters 3, 7, 14-16); 12; (chapters 1,
3. Develop the distribution plan 4)
a. Develop a distribution location-
specific product forecast VIII. Manage Quality, Continuous Improvement,
b. Develop the replenishment and Technology
planning parameters for stock
keeping units (SKU) within the A. Manage quality
distribution network
c. Undertake time-phased planning 1. Consider the impact of processes and
logic for distribution requirements their outputs on internal and external
planning (DRP) customers
4. Review distribution plans and master 2. Review cost of quality (examples
schedules to support the sales and include: prevention cost, appraisal
operations plan (S&OP) cost, internal failure cost, and external
5. Review inventory levels and locations failure cost)
required within the distribution 3. Review processes and outputs utilizing
channel to support supply and appropriate quality tools (examples
demand plans include: basic seven tools of quality
6. Monitor key performance indicators (B7) and seven new tools of quality
(KPIs) of the distribution network (N7))
(examples include: on-time delivery, a. Identify potential process
lead time, inventory turns, safety stock problems proactively
levels, stock-outs, and customer b. Identify the root cause of an
satisfaction) existing problem
4. Undertake internal and external
B. Manage customer orders benchmarking for process
improvement
1. Monitor inventory availability and lead
time in support of marketing and B. Manage continuous improvement
customer service level goals

1. Utilize lean concepts and undertake and resource availability, assign
process improvements (examples ownership, and utilize project
include: eliminate waste, improve management tools
throughput, and reduce inventory) b. Perform group problem-solving
2. Utilize lean tools (examples include: exercises and computer
pull systems, scrum, kanban, takt simulations
time, standardized work, leveling 3. Maintain technology systems
workload, total production a. Emphasize the necessity of testing
maintenance (TPM)) and use of restrictions
3. Improve relationship performance with b. Determine impacts and use
customers and suppliers (examples tradeoffs to minimize risks
include: collaboration technologies, c. Develop prioritization techniques
voice of the customer (VOC), supplier and communication skills
certification, and supplier feedback) 4. Adopt emerging technologies as
4. Conduct value stream mapping (VSM) appropriate for competitive advantage
to better understand processes (examples include: artificial
5. Utilize A3 problem solving to manage intelligence (AI), Internet of Things
process improvement projects (IoT), 3D printing, augmented reality,
6. Improve workflow and work area robotic process automation (RPA), and
design (examples include: five Ss (5s), machine learning)
automation, visual management,
andon, and layouts) References: 1; 2 (chapters 2, 6); 4 (chapter
7. Undertake structured problem-solving 14); 5 (chapters 8, 9, 15); 7 (chapters 15-16);
processes (examples include: plan-do- 8 (chapters 1-9); 9 (chapters 8); 10 (chapters
check-act (PDCA); define, measure, 1-8, 10-15); 11 (chapters 13); 12 (chapters 3,
analyze, improve, control (DMAIC); and 6-7); 13 (chapters 1-10)
six sigma)
8. Monitor process performance and Key Terminology
reduce variation using statistical An understanding of the list of terms in the key
process control (SPC) methods terminology section of this document is strongly
(examples include: P charts, X-bar recommended. The list is intended to be thorough
charts, R charts, and capability but not exhaustive. The candidate is also
indices) expected to be familiar with the definitions of
terms identified in the content outline. Definitions
C. Manage technology of these terms can be found in the APICS
Dictionary, 16th edition.
1. Develop technology systems
requirements or specifications to Bibliography
support company goals All test candidates should familiarize
a. Determine current and ideal state themselves with the references for this exam.
utilizing appropriate tools The recommended references pertaining to
(examples include: flowcharts, the diagnostic areas are listed at the end of
benchmarking, and process each section of the content outline. The first
mapping) number indicates the sequence number for
b. Identify gaps, system limitations, the reference in the Bibliography section and
costs, process knowledge needed, the numbers in parenthesis indicate the
and human resource (HR) policies relevant chapters within that reference.
to be considered
2. Support technology implementation The APICS Dictionary is available from the
a. Demonstrate need for ideal state APICS Bookstore. Other references can be
to be achieved, consider tradeoffs found on the CPIM Exam References page.
40 ©APICS
CPIM Part 2 Sample
Questions
The following ten questions are similar in Use the information below to answer
format and content to the questions on the question 4.
exam. These questions are intended for
practice and to illustrate the way questions Lead time: 2 Lot size: 30
are structured. The degree of success you Demand time fence: 3 On hand: 15
have in answering these questions is not Planning time fence: 7 Safety stock: 6
related to your potential for success on the
actual exam and should not be interpreted as Period 1 2 3 4 5
such. Forecast 10 22 20 24 28
Customer 5 26 15 6 30
Read each question, select an answer, and orders
check your response with the explanation on Projected
pages 46-47. available
balance
1. The forecast interval would typically be Available-to-
longest for forecasts used as input to promise
which of the following processes? Master 30 30
production
(A) Business planning schedule
(B) Final assembly scheduling (FAS)
(C) Sales and operations planning (S&OP) 4. For the master schedule, what is the available-
(D) Master production scheduling (MPS) to-promise for Period 4 if the discrete method
is used?
2. In a distribution environment, which of the
following will occur if the planner fails to (A) 22
address exception messages during the (B) 24
planning cycles? (C) 35
(D) 37
(A) Planned orders are not converted on time
(B) Replenishment lead times are incorrect 5. Given the following purchase cost data
(C) The statistical order point is increased for product Z:
(D) The planning horizon is too short
0 on hand (December 27)
3. Cause-and-effect analyses are made 100 @ $10 = $1,000 (December 28)
with the help of which of the following? 10 @ $11 = $110 (January 3)
10 @ $8 = $80 (January 10)
(A) Fishbone chart
(B) Statistical process control (SPC) If this company is using a weighted
method average costing method and 100 units
(C) Critical path method (CPM) were sold on January 8, the cost per unit
(D) Pareto analysis for the sale is:
(A) $9.17
(B) $10.00
(C) $10.09
(D) $8.00

6. Which of the following is a significant
factor 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 make-to-order organization competing

on delivery speed would consider which
of the following to be 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
8. Which of the following measures is a key

indicator of a firm’s asset utilization?
(A) Profit margin

(B) Current ratio
(C) Inventory turnover
(D) Cost of goods sold (COGS)
9. Which of the following is an advantage

of using a lag capacity strategy
approach in implementing operations
strategy?
(A) High facility utilization rate

(B) Revenue maximization
(C) Reaction to short-term demand
changes
(D) Product mix flexibility
42 ©APICS
10.
The MRP Grid

Technique
Order quantity / Lot Size – lot-for-lot (L4L)
On hand: 500
Safety stock: 0
Allocated quantity: 0
Low-level code: 0
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
The chart shows the gross requirements for an

item in a material requirements planning
system. Stock on hand is 500, and there is
nothing on order. The item has a lead time of
four periods and is being ordered lot-for-lot.
Which of the following would be the correct
planned order release for the item?
(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

Answers to Sample capacity requirements planning is done at
the MRP level. C is incorrect because rough-
Questions cut capacity planning is done at the master
schedule level. D is incorrect because
Note: References to the content outline input/output control (I/O) is completed
appear in parentheses. during execution of the plan and is the
shortest planning range.
CPIM Part 1
6. D (IVB2) To calculate how much actual time
1. B (IA2c) A shipping buffer prevents will be needed to complete 16 standard
missed due dates. A is incorrect hours of work, divide the capacity required
because the drum is the rate of by the efficiency times the utilization
production set by the system’s (actual time = capacity required /
constraint. C is incorrect because a (efficiency) (utilization) (actual time = 16 /
constraint buffer is used to buffer the (80%) (80%). A is incorrect because it was
constraint. D is incorrect because the incorrectly calculated by multiplying the 16
rope is the communications process for hours required by 40 percent (the
releasing work. difference in the capacity and utilization
from 100 percent) and adding the amount
2. A (IH4) A cash flow statement shows the to the 16 hours required ((16 × 40% = 6.4),
flow of cash and its timing into and out then (16 + 6.4 = 22.4)). B is incorrect
of an organization. B is incorrect because it was incorrectly calculated by
because an income statement shows multiplying efficiency and utilization and
profit and loss over a period of time. C is then multiplying the required standard
incorrect because a balance sheet hours (80% × 80% = .64, then .64 × 16 =
shows the resources owned, the debts 10.24). C is incorrect because it is the
owed and the owner’s equity at a given standard hours required and does not
point in time. D is incorrect because a consider the efficiency and utilization of the
market share report indicates how well a operation.
firm is doing in the market.
7. D (VM4) Random-location storage
3. C (IID1) Forecasts are usually wrong; enables parts to be placed in any space
therefore, every forecast should include that is empty. This method often
an estimate of error. A is incorrect required less storage space than a fixed-
because forecasts are more accurate for location storage method. A is incorrect
families or groups. B is incorrect because distribution is the activities
because forecasts are not used for associated with the movement of
independent demand items. D is material from the manufacturer to the
incorrect because forecasts are more customer. B is incorrect because kitting
accurate for near-term periods. is the process of constructing and
staging kits. C is incorrect because
4. D (IID3) Intrinsic forecast data is based access to stock is usually an advantage
on interior factors, such as sales history. of fixed-location storage.
A and B are incorrect because these are
extrinsic data. C is incorrect because 8. C (VI2) Decoupling creates
shipment history may not show the independence between supply and use
actual demand if the product was of material. A is incorrect because it is
unavailable for shipment. lot size inventory. B is incorrect because
it is inventory in transit between
5. B (IC3) Resource planning is long-range locations. D is incorrect because hedge
capacity planning completed at the is a form of inventory buildup to buffer
production plan level. A is incorrect because
44 ©APICS
against some event that may not Simplify means to neatly arrange
happen. items for use. Scrub means clean up
the work area. Standardize means to
Answers to Sample sort, simplify and scrub daily. Sustain
means to always follow the first four
Questions Ss. Sometimes referred to by the
Japanese equivalents: seiri, seiton,
Technology Enhanced Items (TEIs) seiso, seiketsu and shitsuke
1. (VJ2) The inventory turnover is 4

times. A frequently used method to
compute inventory turnover is to
divide the annual cost of goods sold by
the average inventory level.
2. (IVB4) The answer is invoice, purchase

order, receiving report. The purchase
order, receiving report and the invoice
should be consistent regarding items
and quantities so that the items and
quantities the supplier will be paid for
are consistent with the items and
quantities that were ordered and
received. The bill of lading, packing list
and customs documentation can be
seen as information related to the
transport of the goods and not
impacting the invoice approval. The
purchase requisition precedes the
purchase order and is not required for
invoice approval.
3. (IC) The answer is data gathering,

demand planning, supply planning,
pre-S&OP meeting, executive meeting.
The S&OP five-step process can be
summarized as data gathering,
demand planning, supply planning,
pre-S&OP meeting and executive
meeting. The step “Generate the
master production schedule (MPS)” is
not part of the process.
4. (IE1) The answer is sort, set in order/

straighten/simplify, shine/scrub,
standardize, sustain. Five terms
beginning with “S” used to create a
workplace suitable for lean
production: sort, simplify, scrub,
standardize, sustain. Sort means to
separate needed items from
unneeded ones and remove the latter.

Answers to Sample
Questions
Note: References to the content outline 5. C (VC) - A is incorrect because it uses
appear in parentheses. the cost of inventory after January 10,
but the inventory is used on January 8. B
CPIM Part 2 is incorrect because it is the FIFO cost of
the product. C is correct because this is
1. A (IIID) - Business planning is performed the weighted average on January 8. D is
at the highest level of aggregation and incorrect because this is the last cost
over the longest horizon and would paid for each item.
typically be done for fiscal quarters or
years. Answers B, C, and D refer to 6. B (VB) - The level of work-in-process
processes that would have shorter (WIP) inventory when a pull signal is
horizons and intervals. employed is a function of the number of
pull signals and the quantity
2. A (VIIA) - Answers B, C, and D refer to represented by each pull signal. A, C,
system parameters that exception and D are incorrect. Shop orders (A) are
messages would not address. Answer A characteristic of a push system and are
is a direct result of failing to address not relevant in a pull system. The
exception messages. number of workstations (C) in the
process determines the minimum work-
3. A (VIIIA) - The fishbone chart is a in-process (WIP) level, but does not
diagram of the possible causes of a determine the total WIP level. The takt
problem. The causes are determined time (D) determines the rate at which
with the aid of brainstorming the process needs to operate. It does
techniques. Statistical process control not determine the WIP level.
(B) focuses on the continuous
monitoring of a process. The critical path 7. D (IB) - As customer demand shifts, the
method (C) is a technique used to plan organization may find itself with capacity
and control the activities of a project. in excess or less than required. Answer
Pareto analysis (D) is a technique to A would impact the amount of inventory
rank order the relative frequency of the company keeps, but it should not
occurrences. have an impact on the delivery speed.
Answer B would have impact on the cost
4. B (IVA) - Available-to-promise for Period but not the delivery. Answer C also does
4 is based on a newly planned master not impact product delivery.
production schedule (MPS) of 30 for
that period, less the customer orders of 8. C (ID) – Inventory turnover (cost of
6 for that period. Because another MPS sales/inventory level) is one of the
of 30 will occur in Period 5, demand for principal measures of a company’s
that period is not considered by the asset utilization. Answer A is a
available-to-promise for Period 4. Based profitability measure (net income/sales).
on the explanation for the calculation for Answer B is a liquidity measure (current
discrete available to promise, Answers assets/current liabilities). Answer D
A, C, and D are incorrect. does not address asset utilization.
46 ©APICS
9. A (IB) - The strategy avoids the wasteful
provision of excess staff that occurs with
a lead capacity plan. Answer B is
incorrect because you could miss
revenue due to capacity shortage.
Answer C is incorrect because it is
harder to react to short-term demand
increases. Answer D is incorrect
because it is harder to be flexible with
high utilization rates.
10. A (IVC)
The MRP Grid
Technique
Order quantity / Lot Size – lot-for-lot (L4L)
On hand: 500
Safety stock: 0
Allocated quantity: 0
Low-level code: 0
Lead time: 4
Periods
1 2 3 4 5 6 7 8
x Gross requirements 100 300 200 400
Scheduled receipts
Projected available 500 400 100
Net requirements 100 400
Planned order receipts 100 400
Planned order releases 100 400

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 support@ascm.org.
48 ©APICS
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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VERSION 7.

©2020 APICS, Inc.

8430 West Bryn Mawr Avenue

©APICS CPIM Exam Content Manual i

Because organizations operate in a changing APICS CPIM Part 2

CPIM Exam Content Manual 1

The APICS CPIM program will continue to

We wish you success in your pursuit of CPIM

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

CPIM Exam Content Manual 3

CPIM Exam Content Manual 5

A separate courseware subcommittee, in The following graphic is representative of the

CPIM Exam Content Manual 7

• preserving the currency of hard-

Maintaining your APICS CPIM certification

The APICS CPIM certification maintenance

CPIM Exam Content Manual 9

References Author(s) Part 1 Part 2

2 Accelerate: Building Strategic Agility for a Kotter, John P. X

CPIM Exam Content Manual 11

Key Terminology Part 1 Part 2 Key Terminology Part 1 Part 2

CPIM Exam Content Manual 13

CPIM Exam Content Manual 15

CPIM Exam Content Manual 17

Lifetime buy - A process for purchasing

Master data - An enterprise’s essential core

Master data management (MDM) - A

Personal protective equipment (PPE) - Items

CPIM Exam Content Manual 19

Fundamentals of Demand Management

CPIM Part 1 Content 21

1. Strategic The impact on product management of

References: 1; 7 (chapters 2-5); 11 (chapters 7-8, B. Make

CPIM Part 1 Content 23

CPIM Part 1 Content 25

(A) It is used to create the master 6. An order of 10 components requires 16

Example 1: Fill in the Blank

Average Current Retained Annual Cost

$200,000 $400,000 $300,000 $800,000

Given the data above, the inventory turnover

Example 2: Unordered List

 Bill of lading Place the 5S steps in the proper sequence for

CPIM Part 1 Content 27

Plan, manage, and execute detailed Diagnostic Main topic Percentage

CPIM Part 2 Content 29

1. Determine operations strategy to D. Define and monitor key performance

G. Define and support sustainability goals B. Review aggregate demand plan

CPIM Part 2 Content 31

1. Understand demand forecasting A. Create the master schedule

CPIM Part 2 Content 33

1. Check relevant MRP input and data 1. Identify sources of demand to be

CPIM Part 2 Content 35

B. Inventory management D. Inventory control

CPIM Part 2 Content 37

CPIM Part 2 Content 39

CPIM Part 2 Content 41

(A) Number of open shop orders

7. A make-to-order organization competing

(A) Relocation of suppliers