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APICS CPIM-8.0 Exam
Certified in Planning and Inventory Management (CPIM 8.0) (Page 2 )

Updated On: 1-Feb-2026
Page 2 of 31
PDF with 150 Questions

The primary benefit that results from the cross-training of employees is:

  1. improved flexibility.
  2. improved capacity.
  3. shortened lead time.
  4. effective problem-solving.

Answer(s): A

Explanation:

Cross-training employees is the process of training employees for skills and job roles they weren't initially hired for. This allows them to switch between different tasks and roles when needed, which increases the flexibility and adaptability of the workforce. Cross-training also enhances the problem- solving, communication, and collaboration skills of the employees, but the primary benefit is improved flexibility.


Reference:

1: 9 Major Benefits of Cross-Training Employees Effectively
2: Employee cross-training: 8 benefits you can't afford to miss



Which of the following production activity control (PAC) techniques focuses on optimizing output?

  1. Gantt chart
  2. Priority sequencing rules
  3. Theory of constraints (TOC) scheduling
  4. Critical path management (CPM)

Answer(s): C

Explanation:

Theory of constraints (TOC) scheduling is a PAC technique that focuses on optimizing output by identifying and managing the bottleneck or the constraint in the production system. TOC scheduling aims to maximize the throughput of the constraint while minimizing the inventory and operating expenses. Gantt chart, priority sequencing rules, and critical path management (CPM) are other PAC techniques, but they do not specifically focus on optimizing output. Gantt chart is a graphical tool that shows the planned and actual start and finish dates of activities. Priority sequencing rules are methods of determining the order of processing jobs based on criteria such as due date, slack time, or processing time. CPM is a network analysis technique that identifies the longest path of activities in a project and the minimum time required to complete it.


Reference:

APICS CPIM Part 2 Exam Content Manual, p. 29
[APICS CPIM Learning System Version 8.0], Module 4, Section C, p. 4-25



An example of a flexibility metric for an organization Is:

  1. average batch size.
  2. scrap rate.
  3. percentage of orders delivered late.
  4. cycle time.

Answer(s): D

Explanation:

A flexibility metric is a measure of how well an organization can adapt to changes in demand, supply, or technology. Flexibility metrics can be classified into three categories: volume flexibility, mix flexibility, and new product flexibility. Volume flexibility is the ability to adjust the output level to meet fluctuations in demand. Mix flexibility is the ability to produce different types of products or services with the same resources. New product flexibility is the ability to introduce new products or services quickly and efficiently. Cycle time is an example of a flexibility metric, as it measures the time required to complete a process or activity, from start to finish. Cycle time can indicate the responsiveness and agility of an organization, as shorter cycle times imply faster delivery, lower inventory, and higher customer satisfaction. Cycle time can also reflect the efficiency and quality of an organization, as shorter cycle times imply less waste, fewer errors, and lower costs. Therefore, cycle time is a relevant metric for assessing the flexibility of an organization.


Reference:

CPIM Part 2 Exam Content Manual, Version 8.0, ASCM, 2021, p. 29. CPIM Part 2 Learning System, Version 8.0, Module 3, Section A, Topic 3.



Forecast error typically triggers forecast revision when it is:

  1. used in computing the tracking signal.
  2. associated with the Introduction stage of the product life cycle.
  3. continually increasing.
  4. caused by random variation.

Answer(s): C

Explanation:

Forecast error is the difference between the actual demand and the forecasted demand for a given period. Forecast error can be caused by various factors, such as changes in customer preferences, market conditions, competitor actions, or random variation. Forecast error can be measured using different methods, such as mean absolute deviation (MAD), mean absolute percentage error

(MAPE), or tracking signal. Forecast error typically triggers forecast revision when it is continually increasing, which indicates that the forecast model is not capturing the underlying demand pattern or trend. A continually increasing forecast error can lead to poor customer service, excess or obsolete inventory, or lost sales opportunities. Therefore, it is important to monitor the forecast error and revise the forecast when necessary to improve the forecast accuracy and reliability. Forecast error does not trigger forecast revision when it is used in computing the tracking signal, associated with the introduction stage of the product life cycle, or caused by random variation. These are not valid reasons for revising the forecast, as they do not indicate a systematic or persistent deviation from the actual demand.


Reference:

CPIM Part 1 Study Guide, Chapter 4: Demand Management, Section 4.2: Forecasting Techniques and Performance Measurement
CPIM Part 2 Study Guide, Chapter 3: Demand Management, Section 3.1: Demand Planning A Critical Look at Measuring and Calculating Forecast Bias, Section: What Is Forecast Bias? How Can Forecast Error be Calculated?, Section: Introduction



Which of the following methods places a replenishment order when the quantity on hand falls below a predetermined level?

  1. Min-max system
  2. Fixed order quantity
  3. Periodic review
  4. Available-to-promlse (ATP)

Answer(s): B

Explanation:

Fixed order quantity is a method that places a replenishment order when the quantity on hand falls below a predetermined level, called the reorder point. The reorder point is calculated based on the expected demand during the lead time and the safety stock. The order quantity is fixed and constant, and it is determined by the economic order quantity (EOQ) formula or other criteria. Fixed order quantity is also known as the order point/order quantity (OP/OQ) system or the continuous review system.
Option A is not correct, because min-max system is a method that places a replenishment order when the quantity on hand falls below a minimum level, called the order point. The order quantity is variable and depends on the difference between the maximum level and the current inventory level. Min-max system is also known as the two-bin system or the bin system. Option C is not correct, because periodic review is a method that places a replenishment order at fixed intervals of time, regardless of the quantity on hand. The order quantity is variable and depends on the difference between the target inventory level and the current inventory level. Periodic review is also known as the fixed order interval (FOI) system or the periodic order quantity (POQ) system.
Option D is not correct, because available-to-promise (ATP) is not a method of inventory replenishment, but a calculation of the uncommitted portion of the current inventory and planned production. ATP is used to promise delivery dates to customers based on the availability of inventory and production capacity.


Reference:

Inventory Management and Control
Inventory Replenishment Methods
Inventory Replenishment Policies



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