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CPIM-Part-2 APICS Certified in Planning and Inventory Management (Part 2)

  • APICS
  • 4 free sample questions

About this exam

CPIM-Part-2 is the APICS exam APICS Certified in Planning and Inventory Management (Part 2). Paid practice material for this exam is not available yet, but you can try its free sample questions.

Exam code
CPIM-Part-2
Vendor
APICS
Practice questions
Not available yet
Free sample questions
4
Question bank last updated
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Try 2 sample questions

Taken from the free sample set for CPIM-Part-2.

Question 1

Which of the following types of operational strategies typically would result in the lowest inventory cost

  1. Option A:
    Mixed-model
  2. Option B:
    Level
  3. Option C:
    Chase
  4. Option D:
    Hybrid
Show answer and explanation

Correct answer: C

A chase operational strategy is one that adjusts production to match the demand pattern. This means that the inventory level is kept low, as the output is synchronized with the demand. This reduces the inventory cost, as there is less need for holding, ordering, and carrying inventory. A chase strategy also minimizes the risk of obsolescence, spoilage, or excess inventory. A level operational strategy is one that maintains a constant output rate, production rate, or workforce level. This means that the inventory level fluctuates, as the output may not match the demand. This increases the inventory cost, as there is more need for holding, ordering, and carrying inventory. A level strategy also increases the risk of stockouts, overstocking, or waste. A mixed-model operational strategy is one that produces several products with the same resources. This means that the inventory level varies, as the output depends on the product mix and the demand. This may increase or decrease the inventory cost, depending on the product characteristics, demand variability, and resource utilization. A mixed-model strategy also requires more flexibility and coordination in production planning and scheduling. A hybrid operational strategy is one that combines elements of chase and level strategies. This means that the inventory level is balanced, as the output is partly adjusted to the demand and partly kept constant. This may increase or decrease the inventory cost, depending on the degree of adjustment and constancy. A hybrid strategy also requires more trade-offs and compromises in production decision making. Reference: APICS Exam Handbook, page 12 CPIM Part 1 Study Guide, page 19 CPIM Part 2 Study Guide, page 17

Question 2

An organization has seen inventory increase every month for the past year and financial performance has net met expectations. Which of the following processes would most appropriately address correcting the problem?

  1. Option A:
    Business planning
  2. Option B:
    Sales and operations planning (S&OP)
  3. Option C:
    Detailed material planning
  4. Option D:
    Master scheduling 
Show answer and explanation

Correct answer: B

Sales and operations planning (S&OP) is a process that aligns the sales plan, the production plan, the inventory plan, and the financial plan to achieve the business objectives. S&OP helps to balance supply and demand, optimize resources, reduce inventory costs, and improve customer service. S&OP is done on an aggregate or family level, and covers a sufficient span of time to make sure that the necessary resources will be available. S&OP also involves regular reviews and updates of the plans based on the changes in the market and the company’s performance. Business planning is a process that defines the long-term vision, mission, goals, and strategies of the organization. Business planning provides the direction and framework for the operational plans, but does not address the specific issues of inventory management and financial performance. Detailed material planning is a process that determines the quantity and timing of material requirements for each item or component in the production plan. Detailed material planning is based on the master schedule, which is derived from the S&OP. Detailed material planning does not address the alignment of sales and operations at an aggregate level. Master scheduling is a process that translates the S&OP into a detailed plan for each product or service in a specific time period. Master scheduling specifies the quantity and timing of finished goods to be produced or delivered to meet the demand. Master scheduling is dependent on the S&OP, and does not address the coordination of sales and operations at an aggregate level. Reference: APICS Exam Handbook, page 12 CPIM Part 1 Study Guide, page 19 CPIM Part 2 Study Guide, page 17 
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