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APICS CPIM-Part-2 Exam Questions
- Topic 1: Align the Supply Chain to Support the Business Strategy: This topic covers the essential understanding of the business landscape and the development and implementation of strategies to ensure the supply chain is aligned with corporate goals. It includes sub-topics such as defining KPIs, managing risks, and designing processes to support strategic objectives.
- Topic 2: Conduct Sales and Operations Planning (S&OP) to Support Strategy: The section focuses on the role of S&OP in strategic support, with sub-topics covering the review of demand, supply, and financial plans, and their reconciliation to ensure a cohesive strategy.
- Topic 3: Plan and Manage Demand: Here, the topic centers on understanding customer needs and specifications, with sub-topics covering marketing considerations, demand sources, and forecast generation to effectively plan and manage demand.
- Topic 4: Plan and Manage Supply: This section details the creation of master schedules and the management of material requirements, including rough-cut capacity planning and final assembly scheduling, to ensure a seamless supply process.
- Topic 5: Plan and Manage Inventory: The topic covers inventory planning, management, and cost control, including returns and product disposition, with sub-topics detailing the monitoring and management of inventory-related costs.
Free APICS CPIM-Part-2 Exam Actual Questions
Note: Premium Questions for CPIM-Part-2 were last updated On May. 22, 2026 (see below)
Which of the following activities will enhance a successful supplier customer lean relationship?
A lean relationship is a type of supplier-customer relationship that focuses on eliminating waste, improving quality, and reducing costs throughout the supply chain. A lean relationship requires a high level of collaboration, trust, and transparency between the supplier and the customer. Communication between the counterparts at the two companies is an essential activity that will enhance a successful lean relationship. Communication can help to align the goals, expectations, and performance measures of the supplier and the customer, as well as to identify and resolve any issues or problems that may arise. Communication can also facilitate information sharing, feedback, and continuous improvement initiatives.Reference: CPIM Exam Content Manual Version 7.0, Domain 7: Plan and Manage Distribution, Section 7.1: Develop Distribution Plans, Subsection 7.1.3: Describe how to develop supplier-customer relationships (page 66).
Compared to traditional supplier relationships, a more strategic view of supplier relationships would require:
Compared to traditional supplier relationships, a more strategic view of supplier relationships would require maintaining communication based on trust.Trust is a key factor that enables effective collaboration, information sharing, problem solving, and innovation between supply chain partners12.Trust can also reduce transaction costs, conflicts, and opportunism, and increase commitment, loyalty, and performance34. Therefore, maintaining communication based on trust is essential for developing and sustaining strategic supplier relationships that can create value and competitive advantage for both parties.
The other options are not necessarily required for a more strategic view of supplier relationships, because they are either insufficient or irrelevant. Offering the supplier more business may increase the volume or frequency of transactions, but it does not guarantee a more strategic or long-term relationship. Adopting electronic data interchange (EDI) may improve the efficiency or accuracy of information exchange, but it does not ensure a more collaborative or innovative relationship. Implementing concurrent engineering may enhance the product design or development process, but it does not address the other aspects of a strategic relationship, such as quality, delivery, or risk management.
The trade-off of increasing safety stock to improve customer fill rate would be a decrease in:
Inventory turns, also known as inventory turnover or stock turnover, is a measure of how many times a company sells and replaces its inventory in a given period.It is calculated as the ratio of cost of goods sold (COGS) to average inventory1. A higher inventory turnover indicates that the company is selling its inventory quickly and efficiently, while a lower inventory turnover indicates that the company is holding too much inventory or having difficulty selling its products.
Increasing safety stock to improve customer fill rate would result in a decrease in inventory turns, as it would increase the average inventory level.Safety stock is the extra inventory that is held to prevent stockouts and meet unexpected demand2.Customer fill rate is the percentage of customer orders that are fulfilled from available inventory without delay3. Increasing safety stock can improve customer fill rate by reducing the risk of stockouts and ensuring high service levels.However, increasing safety stock also increases the inventory carrying costs and risks, such as storage, handling, obsolescence, shrinkage, and opportunity costs4. Therefore, increasing safety stock is a trade-off between customer satisfaction and inventory efficiency.
The other options are not correct.Pipeline inventory is the inventory that is in transit between locations or stages in the supply chain5. Increasing safety stock would not affect pipeline inventory, as it is determined by the lead time and demand rate.Transportation costs are the expenses incurred for moving goods from one location to another6. Increasing safety stock would not affect transportation costs, as it is determined by the distance, mode, volume, and frequency of transportation.Sales revenue is the income generated from selling goods or services to customers7. Increasing safety stock would not affect sales revenue directly, as it is determined by the price and quantity of sales. However, increasing safety stock may have an indirect positive effect on sales revenue by improving customer satisfaction and loyalty.
The sales and operations planning (S&OP) process in an assemble-to-order (ATO) production environment focuses on control of:
The S&OP process in an ATO production environment focuses on control of key intermediate part inventory, which are the components or subassemblies that are produced in advance and assembled to order when the customer order is received. By controlling the key intermediate part inventory, the S&OP process can balance the demand and supply of the final products, while reducing the lead time and inventory costs. The key intermediate part inventory is also known as the decoupling point, where the production process switches from MTS to MTO mode. The S&OP process can determine the optimal level of key intermediate part inventory based on the forecast and backlog of customer orders, as well as the production capacity and costs.
The other options are less relevant for the S&OP process in an ATO production environment. End product backlog refers to the customer orders that have not been fulfilled yet. Finished goods inventory refers to the final products that are ready for sale. Raw material inventory refers to the basic materials that are used to produce the components or subassemblies. These types of inventory are more applicable for MTS or MTO production environments, where the production process is either entirely based on forecast or entirely based on sales order. In an ATO production environment, the S&OP process does not need to control these types of inventory, as they are either minimal or nonexistent.Reference: CPIM Part 2 Exam Content Manual, Domain 4: Plan and Manage Supply, Section B: Production Planning and Control, Subsection 1: Production Strategies and Techniques, Page 19;Demand management process in assemble to order (ATO) environment;Assemble-to-Order (ATO): Overview, Examples, Pros and Cons.
Which of the following is the fundamental difference between finite loading and other capacity planning approaches?
Finite loading is a capacity planning approach that considers adjustments to plans based on planned capacity utilization. It does not allow overloading of resources and schedules operations only when there is enough capacity available. Finite loading creates a more realistic schedule for the production processes than other approaches, such as infinite loading, that ignore the capacity constraints and assume that the due dates of orders are absolute. Finite loading is not highly dependent on advanced computer software, although it can benefit from it. It is not only managed by shop floor supervisors, but also by planners and schedulers. It can use historical information, but it is not the only approach that can do so. Therefore, the fundamental difference between finite loading and other capacity planning approaches is that it considers adjustments to plans based on planned capacity utilization.Reference:= CPIM Part 2 Exam Content Manual, Domain 6: Plan, Manage, and Execute Detailed Schedules, Section B: Schedule Production Activities, Subsection 1: Develop a detailed production schedule (p. 28)
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