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APICS CPIM-Part-2 Exam Actual Questions
Certified in Planning and Inventory Management (Part 2) (Page 8 )

Updated On: 27-Jul-2026
Page 6 of 32
PDF with 151 Questions

The demonstrated capacity of equipment in a process flow is $1,200 per day. Due to a malfunction in a feeder line, utilization of the equipment is reduced by 25% on Day 6. If the efficiency remains unchanged at 110%, what would the output be on Day 6?

  1. $300
  2. $330
  3. $900
  4. $990

Answer(s): D

Explanation:

The output of the equipment on Day 6 can be calculated by multiplying the demonstrated capacity, the utilization, and the efficiency. The demonstrated capacity is given as $1,200 per day. The utilization is the ratio of the actual time that the equipment is used to the available time that it could be used. Since the utilization is reduced by 25% on Day 6, it means that the equipment is used for 75% of the available time. Therefore, the utilization is 0.75. The efficiency is the ratio of the actual output to the standard output. It is given as 110%, which means that the equipment produces 10% more than the standard output. Therefore, the efficiency is 1.1. The output on Day 6 can be found by multiplying these three factors:
Output = Demonstrated capacity x Utilization x Efficiency Output = $1,200 x 0.75 x 1.1 Output = $990 Therefore, the output on Day 6 is $990.


Reference:

CPIM Part 2 Exam Content Manual, Version 7.0, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section A: Detailed Capacity Planning and Scheduling, Subsection 2: Capacity Management Concepts and Calculations, p. 37-38.



An outlier has been identified in the demand data for an item. The most appropriate next step would be to:

  1. set the forecast value to the outlier limit.
  2. screen the outlier for manual review.
  3. advance the forecast model in time, without smoothing.
  4. increase the length of the forecast time period.

Answer(s): B

Explanation:

An outlier is a data point that falls outside of the expected range of the data, i.e., it is an unusually large or small data point1. Outliers can have a significant adverse impact on the forecasts, as they can skew the data distribution and distort the statistical analysis2. Therefore, it is important to detect and remove outliers from the demand data before generating forecasts. One of the techniques that can be used to detect outliers is to use the standard deviation of the data, or the equivalent z-score, to determine the outlier limit3. For example, one approach is to set the lower limit to three standard deviations below the mean, and the upper limit to three standard deviations above the mean. Any data point that falls outside this range is detected as an outlier. However, detecting outliers is not enough. The most appropriate next step would be to screen the outlier for manual review. This means that the detected outlier should be examined by a human expert to determine whether it is a true outlier or not, and whether it should be corrected or not4. This is because not all outliers are erroneous or irrelevant. Some outliers may be valid observations that reflect real changes in demand, such as seasonal peaks, promotional effects, or market trends. In such cases, correcting or removing the outliers may lead to inaccurate or biased forecasts. Therefore, screening the outlier for manual review can help verify the cause and validity of the outlier, and decide on the best course of action. Some of the possible actions are:
Correcting the outlier: replacing the outlier with a more typical value based on historical data or expert judgment. This can smooth out the data and reduce the noise.

Separating the demand streams: splitting the data into two or more series based on different factors that influence demand, such as product type, customer segment, or distribution channel. This can isolate the outliers and allow different forecasting methods to be applied to each series. Adjusting the forecasting model: modifying the parameters or assumptions of the forecasting model to account for the outliers, such as using a different smoothing factor, trend component, or error term. This can improve the fit and accuracy of the model.


Reference:

1: Outlier Definition 1 2: How to Forecast Data Containing Outliers 2 3: How to Detect Outliers in Machine Learning ­ 4 Methods for Outlier Detection 1 4: How Outlier Detection and Correction Works 4 : How to Understand What is an Outlier in Forecasting 3



Safety capacity in lean environments is:

  1. unnecessary waste to be reduced in the next kaizen event.
  2. where take time is greater than cycle time.
  3. provided by adding an additional shift.
  4. employing additional workers in peak periods.

Answer(s): B

Explanation:

Safety capacity in lean environments is where take time is greater than cycle time. Take time is the average time between the start of production of one unit and the start of production of the next unit1. Cycle time is the average time it takes to complete one unit of a product or service2. Safety capacity is the amount of capacity that is reserved to deal with unexpected events or fluctuations in demand or supply3.
In lean environments, the goal is to minimize waste and maximize value by producing only what the customer wants, when the customer wants it, and in the exact amount4. This means that the production system should be synchronized with the customer demand, and the take time should match the cycle time. However, in reality, there may be variations or uncertainties in the demand or supply, such as changes in customer preferences, seasonal patterns, quality issues, equipment breakdowns, or supplier delays. These variations or uncertainties can cause disruptions or imbalances in the production system, leading to stockouts, overproduction, waiting, defects, or rework5.
To cope with these variations or uncertainties, lean environments may use safety capacity as a buffer or contingency plan. Safety capacity is where take time is greater than cycle time, meaning that the production system has some extra capacity to produce more than what the customer currently demands. This extra capacity can be used to absorb the variations or uncertainties and maintain a smooth and stable production flow6. However, safety capacity should not be confused with excess capacity, which is where take time is much greater than cycle time, meaning that the production system has a lot of idle or underutilized resources. Excess capacity is a waste that should be eliminated or reduced in lean environments7.
Therefore, safety capacity in lean environments is where take time is greater than cycle time.


Reference:

1: Take Time Definition 1 2: Cycle Time Definition 2 3: Safety Capacity Definition 3 4: Lean Manufacturing Definition 4 5: The Seven Wastes of Lean 5 6: Capacity Planning Tools 6 7: Excess Capacity



A life cycle assessment (LCA) would be used to determine:

  1. the length of a long-term agreement.
  2. how an item should be scheduled.
  3. environmental aspects and impacts.
  4. if risk pooling would reduce inventory investment.

Answer(s): C

Explanation:

A life cycle assessment (LCA) would be used to determine environmental aspects and impacts. Environmental aspects are the elements or characteristics of a product or service that can interact with the environment, such as emissions, energy use, water use, waste generation, etc. Environmental impacts are the effects or consequences of the environmental aspects on the environment, such as climate change, acidification, eutrophication, human health, biodiversity, etc1 A life cycle assessment (LCA) is a systematic analysis of the potential environmental impacts of products or services during their entire life cycle. During an LCA, you evaluate the potential environmental impacts throughout the entire life cycle of a product (production, distribution, use and disposal) by considering all the relevant environmental aspects and their interactions with the environment23
An LCA can help you:
Identify the most significant environmental aspects and impacts of your product or service Compare the environmental performance of different products or services Find opportunities to reduce the environmental impacts and improve the environmental performance of your product or service
Communicate the environmental benefits of your product or service to your customers, stakeholders, and regulators
Therefore, an LCA would be used to determine environmental aspects and impacts.


Reference:

1: Environmental Aspect Definition 2: Life-cycle assessment - Wikipedia 1 3: Life Cycle Assessment (LCA) - Complete Beginner's Guide - Ecochain 2



Risk pooling would work best for items with:

  1. low demand uncertainty and short lead times.
  2. low demand uncertainty and long lead times.
  3. high demand uncertainty and short lead times.
  4. high demand uncertainty and long lead times.

Answer(s): D

Explanation:

Risk pooling is a strategy to reduce the total safety stock by aggregating the inventory of multiple items or locations. Risk pooling works best for items with high demand uncertainty and long lead times, because these items have higher variability and require more safety stock. By pooling the inventory, the variability of the total demand is reduced, and the safety stock can be lowered without increasing the risk of stockouts.


Reference:

CPIM Part 2 Exam Content Manual, Domain 5: Plan and Manage Inventory, Section 5.3: Inventory Management Policies and Objectives, p. 28.



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