POU Tae b Pt err PPT T UT TTT (©) data wt usualy be inconsistent wth ‘ancl ration (0) he processing time required to Sogregatels extensive (te correct anewer's A) Example 7: Which ofthe folowing ot-zing ‘aindatons would be LEAST seiive to ‘changes in uit costs? (Areas total cost (©) period order quantity (©) par period balancing (Py ktortot (ie corect answer.) Taking the Test ‘You Siu read each question cartay and thoruphiy Tae are tov assuring Inkraion nat given, assuring you know what ‘being ashed winou rearing te ueston amply, o second guesang- the question Ser efor ha boen made 0 avis isecing \worang ano provi sufitentvomaton fr ‘each quesbon Each of the questions ie based onthe cute in {hisexam content mania. Te ets designed {Denlvate a candstesknowtedge ofthe ject mater Therfore te key lo sucess 2 oroogh understanding ofthe subject mater. nen you stat your exam, read al the ‘irectans cart. Bo sure you understand the ‘recon befor you begins answer any ‘vestons Read each questoncarefuly. fa question Insldes stu materia uh a8 able or ‘aph, be euro study efor yeu answer he {uaston. Choos to best answer om the . price pace promaton ©. Customor Relationship Management (CR) Develoning eecive customer latonships, ‘ongoing interacton, and communication vith customers are essental fom product deslon through dolveres. 4. Produc ofengs 2 Dest assistance 3. Infomationtcommunication channels 4. Dalvary consderatone ©. Demand Panning: Demand panning ithe ‘cognition of demand, ether as recat or ‘cual customer orders, Forcasing compl ut volves a varity of anders terms. Once recognizes, mand emt through combination of inventories, ‘CPi Exam Content Manual 2purchase ots, ano the master 2. Rough capacty paring biaeepeaites 3. Capac equrements planning 6 1. Sources of independent demand Goes : 1 customer orders : 3. orcas 5, Bolonecklonstrspacomsker i 6 replnishment ress ©. Praming: Te process of seinggoalsfortne 4 iteriant vanstrs trgertaon ond chosing varius ways te he ergoictons resources to ative ¢ 2. Forecast management ies characterises of demand 1 prnebes of erocating 4. Stato panning and buss pacing © frost ecriques 2, Sales and operation planning 4 frecast or messiement nd {S80Pyprosutn panning sponse 2, Mastor rodton schecuingandroug> References: 2:3 (chapters 7,8) cxtcaecty paring RCP) ang Water ean andtneay fconataints i Transformation of Bernard into Supply ¢ Th son ets te etn prs a 4 Maal gear plaicg QP) : roceses, planning, prey and capaci, ac cg ¢ ‘recto, contol, ng perfomance messes (Grey dtl an, roy : A. Design Design sects product and proces area a te enaigFarmoif range 5. Fat assembiy scheting FAS) rtrd te reer Cla ©. Execution and Coto The nteeatonhins Spprpate eos, cote ord cen. Seven peducn actly contol icingues 1. Manan fost Cpt conto) ksben bute ‘new produ design andintatuiclon imanaganert| and nat peduon process cics sevice requirements. : eee 4. Customer sence ‘ 2. Planing perameters 2 order processing 7 2 teadtine D. order pronsng ender quanty © pushin ‘ salty socxbuters 2 LUnkages othe master producion ¢. capasty eee 2 ata sowees and daa aceracy a sees and operations plan 1. bil mates (20M) rough capacity placing BOM mata eqitements planning (HRP) . ane 3. Scheduling tectriques 4. rutingrocess pageant © workeenteow tne rae pein et 6 med mode schedng 5 ee const cheung chase orders es 4. Workin process QW) 8. Capaaty Menegament The ustion of a copedy ecirel ‘etalshing, measuing, motorng, and ae faust ini or loves of apacty to execute pron contol ait eehodules. (production reporting 4. Resource requrements planing 4 ©2010 APICS The Association fo Operations Managementeevee TTT UU al é a vu é Loh cere *, é 5. Qualy assrence measuring quay 1. process variion process corel , Perfomance Measurements: There are ‘sever types of ey performance estos (Ps). Some are svatgi, wee chore are faoeal and operational. ts important to have napproprate mitre of the Owes pes of ‘erormance measwarient systems for an ‘tect evaaten of oranezabona perfomance, 1. Sitegie 2, Tac! 3. Operational References 12; 3 chapters 2-8) 1v. Supply ‘This econ Includes he actual er planned replenishment of predictor component [A Invontary ventory can be cated by 1. Calogres 2. wmaterils workin process (WP) fished goods across the supply chin 4. senice parts maintenance, repa, and operating suppies (MRO) 2 Funatons | ranstpipaton b. eyieet size © anicpation safety stock ©. hogs bate 3. Charactrisics and measures ‘ABC clasication tracing ventory physi ventory cyte counting record accuracy ays supply of ventory Inventory ums 4. Onder ystome a. time-based b. quantity: based © push versus pul 5. Cost analysis (veston 2 produc costs boxer systoms © sey stock evel versus customer serace lean, Too) Purchasing: The funcon and esponsibity or Understanding demand; procarng mata, ‘Supp, and terogs: and ending wth Invoice approval 1. Recelving and analyzing noticaton of need ‘2, esonal equeton b. MRP ouput ©. kanbans 4. buter 2. Selecting suppers 8 source (singlelmatile) 1, cuppler partnering vendor managed ientory 3. Supper agreements res detvery ‘uatly ‘uantty 4. Order management 2. exdeingheleasing 'b,montong anc conrting open trders {© recelving and accepting orders approving voles for payment 5. Montoring supple performance 2. strategie i. tacteal © operational Physical Distibulon Syston The ink botioen the cuppa the consumer to elver product and sres I faltated by 2 pyscal dstibon syst, 1. Transportation 2. ype b. coats (CPIM Exam Content nual §4 caer avery decksions 2. Warehousing iS ‘ pubis private ‘carlton versus stb coat 2. Ditton invent & ‘ RP push ul reverse logis baer 4. Customer hain b ‘wholesale retaler 5. Inertaces 8 production markings: finance References: 2 8 (ehapers 7, 10-12) Key Terminology ‘An understanding of the folowing lst of emesis Fecommended. The Esti intended to be ‘Borcugh but not extausive. The canst is Aigo expected fo be falar with the doteitons tems dene inthe content outine, A review ofthe fst and stay of be topes nthe bine may revel eter important terms. Defitions of these tems ean be fund Inthe [APICS Dictionary, 12th edo, or inthe Suppiemerta Glossary A "ABC clasefeaton actual coat danced ship ntce (ASN) aggregate forecast ‘don ntepation Iventros fszembeforder assem Ine assets asegnable cause utomated storagetotioval system (ASIRS) savalate ventory svslatieo-promise (ATP) average cost par unit ‘average inventory 8 backtsh backeautng| back backorder beck scheduling balance shoot barcode bale picking bias bil oftaing| bil of material (20M) ‘blanket purchase erdor ‘onde warehouse botteneck break bk butler butler management btipetect businss plan capaci avalaie ‘apacty conto: apacty management capacty planing capaci required ‘capaci requirements planing (CRP) caring cost cash tow cause-and-efiect agra calar manufacturing cenzalzed inventory contol ceed surpller chase production method cosedoop MRP commen carier competive advantage component consigement constant, continuous production continuous replenishment ‘contac carer conta chart & 2010 APICS The Association for Operations Managementconto pots efeconie data terchange (ED) ~S onegent pt timployes empowerment PP see Sere, ~ cost por gaty ‘specs oorder rr ciel chan mere rtepio resouzes planing (ERP) 3 cial pat mod eens cpacty rr ssdockng teens ventory 3 curaiobe lea te eed EE customer cmlode Le sister elaonship management (RM) ‘eral setup tne r custorne service cntinsi forecasting method rE oye oxing F a soak els eevee a oe ‘inal assembly schedule (FAS) r. . {nied goods inventory 4 ecenalae vena contol fhe reed sched Cc. fecouping vero, ‘te ong 4 etre ead te fem lamed order 0) c. and fetone analy ‘9 omen a tire fe fcuig saps c ermana management fess 3 semana arin fientys rc. deomana pu fresiocatonserage 2 ‘eronsated capecy ‘re rer quay amurope fied ovnead ay ‘Spend mana tewenat detention fou shop reader ‘tation ioentory eect mae forecast scetemanutacting ferecast ror see oe pong foreard Sug ftspacting fered sheng r atten fourPs predict, pe, ace, premeton) > disrbuson comer ‘Pane Cc sisuten cost fragt concaton c iste ventory Auroral yout r dsibatenequtemens pang (ORP) a ‘sever r kine OA nr ace sining ap {A (genera and admins expen) r drum sope (BR) caneat senna dium soheaue : = incate gress mag { oo ‘r088 requirement | 4 hedge vet ecnomie edt quanty (£00) Hope tency ee woo Hostin planing ‘CPIM Exam Content Manual 7 UT u' to capacty ‘ae inventory ‘roomeetatement Independent demand ‘ints lasing ‘npuoutput contro (10) bspecton ‘eermitet production ‘ntemedal anspor Ineral setup tee ierpiant demand intranet inventory Ines forecast mathod Inventory Inventory accounting inventory agustment Inventory butler Inventor contrat Inventory fave inventory management Inventor ordering system inventory tums Invent tumover 4 ike jd costing dene Jed shop scheding ‘sin-Tene (iT) K alzen kenbon kay performance indicator (1* L landed cost leang Ineator lead ime leadtine oft lean production lovl of ears level echeduo pies leas lead eveling laistios wet iteontol otorot lotsize ote inventory . ‘ ‘malntsrance, par, and operating supplies (MRO) ' rmakeorbuy decision ‘akoto-order rmakedo-tock manufacturing calor . ‘manufacturing lad time manufacturing order manufacturing phfesophy manufacturing process manufacturing resource planing (MRP I) markt eriven marketing research marketing statesy marketshare ‘ase customization master planning ‘master production schedule (MPS) master schedule tata requirements planning (MRP) mates management ‘mean absolute deviation (HAD) rian min-axsystom rixes-model production rixed-model scheduling move ime moda ‘lve bt of material rtisouring| N net requirements ° ‘one-car kanban gystem on-hand balance conte schedule performance open order operating expense operations management corde entry cerderng cst cer pking cere olnt ‘xe promising ‘xe qualifiers {8 2010 APICS The Association for Operations Managementexer winers| coutouring ‘reread owner's equity 5 pacemaker package to order pact ars eoging sid replenishment period order quandty perpetual ventory record syleal ventory Fieking ist poi stock Blan-docheck-action (POCA) Planned order Planned order receipt ‘laned order release ani hoon Font of sale (POS) ostponement prevention exes preventive maintenance ice ont contrat ‘ony planing Prva carer rocess process batch Procurement ‘Procurement ead time product product cost roduc ferenttion product family production sctiycontral (PAC) production Ene production lan ‘roducton planing production planing mathoss productive capecty productivity prodvetayout roduc te cyte product mie prone Proft margin project rojcted avatabe balance (PAB) protective capacity protective ventory public warehouse pul system Purchase oder purchase requisiion purchasing purchasing ead te push system a quatty quai atthe source ualy eontel ually costs quant count wee R ado frequency Wensfcaton (RFID) tag Fandoncaton storage Fandom vaiton rated capacity rou materat receling record accuracy relevant costs remanufeting reorder quanty repettve manufacturing replnishrt lad ine request for quote (RFC) ‘equirements explosion resourea planning rete teverse auction reverse gists reat eaute anaes rough cut capecty planing (RCCP) routing run tine slot stock sates and operations planning (S&OP) sale lan savtoot gram stor char scheduled eclpt sched scrap seasonal ventory (CPIM Exam Content Manualsoraty fevice onoe uty sorce parts reup set ine Sings soven wastes shipping manifest simulation Singlevel i of materia ‘Singl-source suppl ie sigma qualty sourcing ‘pitt standard costs ‘standard tie ‘san ato state process contol (SPO) stocktooping uit (SHU) ‘ockout cots stockout percentage strategic plan ‘suboontecing supper supp ceifeaton Supuierlona time ‘suppler partnership Supple telatenshp management (SRM) suppiy chain ‘Suppl cain management tact plan ‘axttine ‘ont terms and condtons (Ts & Cs) theory of consis (TOC) theory of onstrains accounting theory of consis performance measures third party iogitis GPL) throughput time Duket time butler time ence time-phases oder point (TPOP) total coat cave {otal cost of ownership (TCO) total productive maintenance (TPM) total qully management (TQM) ‘raceabiy ‘racking signal wate transt inventory transtime ‘wansportaton ‘eanaportafon ventory trend trend forecasting modes ‘wieioed carers trotbin inventory system two-cardtanban system : non © vanes ‘ nico ‘untzaton ‘ Unf measure vupstesm . uizaton value aod ‘ue ai analyls ale steam vatiale cost variance VAT anajis volt vendor \endormanaged inventory (VB) visual review syst ‘oie ofthe customer w walt tie ‘walto-val inventory warchousing waste wave pking voy ‘what analy ‘work eetor workin peocess (WP) work oder viol 2 one picking 410 ©2040 APIOS The Association for Operations ManagementPUUIT of ib 6 Pe rn ‘Supplemental Glossary “The lowing concepts, not found nthe APICS Detionay, finestion, wa be help n preparing fo the Basics of Supply Chaln Fnagemant cates examination, demand planning—The process of combining Stata! forecasting techniques and judgment {Dnstut demand estos fr produes of ‘oroes (bot igh and low volumes lumpy and ‘Sontuus) sows te suply chan fom the ‘Seppe’ row materi tothe consumers reeds ame canbe aggregated by product, Faniy, geograptialoeston product ie cycle, fand 9 fon to deterring an estimate of ‘onsumerderand for fished proaucts, service pari andeenoas, Numerous forecasting (ode are ested and combined wih Judgment om makeing, els, lsbutors, warehousing, ‘Seracn part, end oer factions. Actual sles {re compared wih forecasts provided by various ‘models ad judgrers to determine the best Integration of tectniques and judgment © ‘minnze forecast er. See: demand ‘management ey porformance indicator (KPI)—A fancal ‘Srrontnencal measure, eer tactical or ‘Stati, hate inked spec goals nd obec ‘pacomaker-—In lan, the resource thats ‘eheduled based on the customer demand rate {erthat pode value stream I's hat resus Infich pero an operation or process that [overn thelwof materi along the valve eam, a purpore eo maa a smooth tow {trough the manufacturing planta larger butler Is proved for he pacernaer than oer Fesuroes eo tat ean malntan continous ‘operation, Sea constant Bibliography ‘tea canddstes should femrize temsehes sro foun rterence ble ‘raminton. The ex, recto o Materials ‘Management cavers th marty of te mate fortis module, Te oer references provide ‘average of some a to topic areas end can thence cance understanding of he body SFtnowfedge Alot tese references ae Sralable fom the APICS Bookstore, References 1. AICS CPI Bases of Supply Chain. ‘Management Reprints, 2008. 2. PICS Dictionary, ‘2, 2008 3. Amold, LR. Tony, SN. Chapman, and LM. ive reduction fo tonal Management Sine, Prone Ha, 2008 44. Dennis, Loan Proauctinn Simplified: PabeLanguage Gu ode Werks Most Power Production Systm, 2nd ed Proauety Press, 2007 ‘Sample Questions “Ta folowing 10 questions ae sii in format and covtent fo tbe questions on the exam. ‘These questone are send for pracice—that into enable you to become fla wih the way {hequesions are asked. Tho degree of sucess that you haven answering tesa questo is ot rate to your potatal for susoess on the ‘eal exam and should nate ierpreted as Suh Read each question salt an answer, and ‘hock yur respons ith he expanation on age ds, 4. The ips foMRP tue ouput o ne (4) capacyrequcements plan (©) prosucion pan (©) forecast, (0) master productonsenese 2. Ina vadtona supply chain, wich of he ‘Sowing statements best epresents he ‘elaonships among ins? (A) There are few cones about wat to produce between production and rraretng (@) There ee seldom cones about how much to produce between prodution and ‘ance (0) There ae few confit regarding product thpping meted and sipping requency fotveen snes and dtbuon (©) There ar constant conflicts about {chleving he ergalaato’s man ‘bjectvesbetneen most uncon. ‘cpt Exam Content Manual 1128, Atadtional producto planning and corte ‘System converts which ofthe folowing ‘outputs to inputs? (A) dependent demand to independent ‘demand (6) forcast ished goods to independent tlemand for raw materas (©) independent demati to dependent ‘enand (0) fished products to takt tes and Frbens for material te 4. Intadonal reduction planning and con Stems the aster schedule I at whic vel inthe production process? (A) Foc makeo-tock products, the MPS sat ‘he raw mati evel (6) Formaketo-order products, the MPS i t ‘he component eve. (0) For assembloto-err products, be MPS {nate evbassombi ive (©) Forassenbieto-rder products, the MPS: Te atthe end product iove, 5. Ina vadtona material requirements panning Stem tn ob of MRP is best deserbod by htsrot te ntoutng statements? (a) te produce the ight components at the ‘ight ine inte ght quanty (©) to determing the qual requirements for tenders though process contol (©) tormanage the fow at priowtles and Syelronae pats ow athe constant (0) to termine het sizes for raw Iraterals and cmpenents thoughout the Sopp chan 6. ntradtona capacty management, capaci Fequrements panning takes place afr which ‘ofthe folowing panning process? (9 the soles and operators panning process. {@) the produsion planing process (©) te master scheduling process (0) after nting of existing pats inthe Tatealragorement planing process 1 tn teadtonal production panning ae contol ‘tems, produsion ety contra perfor ‘thief the flung functions)? (4) purchasing contol (6) planning and convo (©) panning, execution, and cont {©) pricy and capac planning and contol 8. Value steam mapping (8 errr ater ents (@ incerparaos tree phases (ascover pilot reduc). (©) ts unifying "atzon event. (©) lg amap of major informaton and material fom 8. ntheary of constraints (TOC), the um ‘hed rofers 0 (A) the release of aw materi to the sytem {@) the schedule of operations performes on the consrait (0) the scheduled shipping of product rom the plant (0) te scree of nonconstrained pats bing assembled with cnstraines parts 40. Inthe POCA cyclo, what does “C" tae or? (8) Capacity (6) check (©) Contant (©) Castomer (Anewers isos on page 46.) 412. ©2010 APICS The Assoclation for Operations Management maaan € ¢