CPIM – Certified in Production and Inventory Management

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Certified in Production and Inventory Management (CPIM) Online Learning Tutorial

The APICS Certified in Production and Inventory Management (CPIM) certification is one of the most esteemed certifications for supply chain professionals. APICS is one of the dominant influences in the area of supply chain management.

The foundation affirms that the Certified in Production and Inventory Management (CPIM) certification validates candidates ability and also improve career opportunities. Furthermore, the CPIM exam boosts one’s earning potential, assist the candidate in obtaining a better knowledge of customer requirements. Not to mention, this increases candidates value to any organization.

In order to achieve CPIM certification, the candidate has to pass five multiple-choice exams that cover the intricacies of Basics of Supply Chain Management, Master Planning of Resources, Complete Scheduling and Planning, Execution and Control of Operations, and Strategic Management of Resources.

All candidates must take and pass the basics of supply chain management examination before attempting the other tests. This is because knowledge of the material included in this examination is assumed in the different studies.

CPIM Learning Objectives
Target Audience

The Certified in Production and Inventory Management (CPIM) certification is a career path for candidates who wish to begin their career in production and record management, supply management, operations, procurement, supply chain management, or purchasing.

Professionals across all enterprises benefit from earning the CPIM certification, especially:

  • Buyers and planners
  • Materials managers
  • Production managers
  • Consultants

A CPIM credential provides a better position for promotion to higher areas, as well as the potential for a higher salary, in both short-term and long-term situations.

CPIM Basic Exam Details

Exam details are the most important information one must acquire beforehand. Therefore, we are providing you with the following details.

First of all, candidates must pass two CPIM exams within three years in order to achieve the certification. By preparing and passing the CPIM exams the candidate demonstrates their dedication to their career and master the knowledge within a company’s global production and inventory activities. 

CPIM Exam Details
CPIM Exam Locations

APICS exams are delivered via computer-based testing (CBT) at Pearson VUE test centres, which are located all around the globe. This implies candidates can take the exam at their own convenience. 

CPIM Exam Details Part 1

Module 1 – Basics of Supply Chain Management 

  • Number of exam questions – 150 (130 operational and 20 pretest*)
  • Length of exam – 3.5 hours
  • PLUS member price: $495 – Or purchase the CPIM Bundle.
  • CORE member/nonmember price: $690
  • Retake price: $250

PURCHASE PART 1 EXAM

CPIM Free Practice Test
CPIM Exam Details Part 2
  • Module 1 – Strategic Management of Resources
  • Module 2 – Master Planning of Resources
  • Module 3 – Detailed Scheduling and Planning
  • Module 4 – Execution and Control of Operations
  1. Number of exam questions – 150 (130 operational and 20 pretest*) each module weighing 25%
  2. Length of exam – 3.5 hours
  3. PLUS member price: $495
  4. CORE member/nonmember price: $690
  5. Retake price: $250

PURCHASE PART 2 EXAM

Exam Scoring Criterion

The ASCM uses a scaled score methodology. This ensures comparable passing standards are kept for each exam form. Candidates can download Understanding a Scaled Score for more information.

The CPIM score range is 200 to 350

Pass = 300-350

Fail = 200-299

CPIM Exam Content

The CPIM exam comprises of five modules with two exams, one for Part 1 and one for Part 2. Each module exhibits critical areas in production and inventory management.

All candidates have to pass the basics of supply chain management examination before they begin to attempt the other module exams. 

CPIM Exam Content

CPIM Part 1: The basics of supply chain management 

CPIM Part 1 Exam Outline

I. Business-Wide Concepts

A. Supply Chain Fundamentals

The concept of a global network used to deliver products and services from raw materials to end consumers through a structured flow of information, physical distribution, and cash. It includes managing conflicts that occur within the supply chain. Businesses are also called upon to demonstrate social responsibility in operating their supply chains.

B. Operating Environments

Global, domestic, environmental, and stakeholder influences affect the key competitive factors, customer needs, culture, and philosophy of a company. This environment becomes the framework in which business strategy is developed and implemented.

C. Financial Fundamentals

Basic financial statements define the financial reporting common to most businesses. Underlying costs and analysis terms provide a further understanding of statement information and often serve as the basis for management decisions.

II. Demand Management

A. Market Driven

Consumer needs, competitive sources, economic conditions, and government regulations determine the demand experienced by suppliers.

B. Voice of the Customer

Actual customer word descriptions of the functions and features that customers desire for goods and services.

C. Demand Management

Apics Reference: Demand management and forecasting, Demand Management Process

Demand management is the function of recognizing all demands for goods and services to support the marketplace. Demand management serves as a key input
into the sales and operations plan and master production schedule (MPS).

III. Transformation of Demand into Supply

A. Product and Process Design

Apics Reference: Product and service design

Design affects product and process, the resulting framework of planning system parameters and the requirement for data appropriate in source, content,
and accuracy. Collaboration with customers and suppliers will improve product and process design.

B. Capacity Management

This section includes the function of establishing, measuring, monitoring, and adjusting limits or levels of capacity to execute all schedules. Capacity management encompasses resource requirements planning, rough-cut capacity planning, capacity requirements planning, input/output controls, and constraints management.

C. Planning

Includes the process of setting goals for the organization and choosing how to use the organization’s resources to achieve them. These different planning techniques vary depending on traditional, lean, or Theory of Constraints operating environments.

IV. Supply

A. Inventory

Apics Reference: InventoryInventory models

The stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies), and customer service (finished goods and service parts).

B. Purchasing Cycle

Apics Reference: Strategic sourcing

The function and responsibility for understanding demand, sourcing, procuring materials, supplies, or services, receiving goods, and approving invoices for
payment.

C. Distribution

Apics Reference: Distribution, Distribution requirements planning (DRP)

The activities associated with the movement of material between the supplier, manufacturer, and customer. These activities encompass the functions of transportation, warehousing, inventory control, material handling, order administration, site and location analysis, industrial packaging, data processing, and the communications network necessary for effective management. It includes all activities related to physical distribution, as well as the return of goods to the manufacturer.

CPIM Part 2: Exam Outline

CPIM Part 2 Exam Course Outline

I. Master Planning of Resources

A. Demand Management

Apics Reference: Demand management and forecasting

Strategic and business planning is closely related to the management of demand, including forecasting and managing the customer interface.

B. Sales and Operations Planning (S&OP)

Apics Reference: Sales and operations planning (S&OP)

Sales and operations planning (S&OP) concepts and techniques are used to link strategic goals to operations and coordinate the various planning
efforts of the functional areas, including operations, sales, sourcing, product development, marketing, and finance in a variety of business environments.

C. Master Scheduling

Apics Reference: Master production schedule (MPS) and final assembly schedule (FAS), Sales and operations planning (S&OP)

Master scheduling is the process of translating higher-level aggregate plans into feasible schedules that operations and suppliers can execute.

II. Detailed Scheduling and Planning

A. Inventory Management

Apics Reference: Inventory management

Inventory management principles, policies, and techniques impact many other decisions throughout the organization, including stocking levels, order quantities, safety stocks, handling and storage requirements, and financial management.

B. Planning Material Requirements to Support the Master Schedule

Apics Reference: Master planning, Planning and Control

Planning material requirements are driven by the master production schedule (MPS), including material requirements planning (MRP), deals with dependent demand parts and interrelationships that require planning at any given time. It also includes independent demand planning for service parts, matching supply with demand, and managing demand at aggregate and disaggregates levels.

C. Planning Operations to Support the Priority Plan

Apics Reference: Operations strategy

Capacity management encompasses planning, establishing, measuring, monitoring, and adjusting levels of capacity to execute the master schedule and related materials plan. It addresses the balancing of the material plans with available internal and external resources and supporting activities, including constraint management, line and flow balancing, and variability and capacity in a transient state.

III. Execution and Control of Operations

A. Execution of Operations

Apics Reference: Operations strategy, Operations management links to other functional areas

The execution of operations includes understanding the scheduling processes that translate plans into operational activities. This includes applying methods of authorizing and releasing work, and the management of resources required to accomplish the work. All execution activities rely on an understanding of the decisions made about the organizational environment, strategies, and objectives.

B. Control of Operations

Control of operations encompasses the ongoing review and management of operational results in comparison to the established near-term plan, followed by analysis and application of any corrective action required to align performance with the plan. Control includes the principles and techniques to accomplish the plan using both internal and external resources.

C. Quality, Communication, and Continuous Improvement

Apics Reference: Quality

Management defines the quality and continuous improvement goals of the organization and uses meaningful communication techniques to educate others and bring about those goals.

IV. Strategic Management of Resources

Apics Reference: SUPPLY CHAIN STRATEGY REPORT

A. Understanding the Business Environment and Developing Corporate Strategy

Operations strategy must be integrated with the corporate strategy of the firm, reflecting the external environment, as well as organizational priorities and philosophies. The operations strategy development process must capture and assimilate that information to provide context for alignment with corporate strategy. Corporate strategy development must consider business environmental factors.

B. Developing the Operations Strategy

Apics Reference: Operations strategy

The operations strategy development process must align with the business strategy and reflect the analysis of the business environment. This includes the processes of identifying, evaluating, and choosing among alternatives in the context of the business strategy and understanding the significance of the various factors in developing the operations strategy.

C. Implementing the Operations Strategy

Various strategic leadership activities, leadership roles, and responsibilities are necessary for the successful implementation of the operations
strategy.

Apics Reference: APICS Operations Management Body of Knowledge Framework

CPIM Exam Policies

APICS provides exam policies to support the candidates by providing every detail related to the certification program. However, candidates during studying for the CPIM exam should first go through and understand the APICS Certification exam policies. On this page, the candidates will get information about after the exam or before exam procedures. This includes the exam retaking process, rules to be followed during the exam time, and other information about the exams and its testing centres.

While preparing for the CPIM exam you will be solely responsible for understanding and complying with CPIM exam policies, together with the specified exam delivery provider’s policies and procedures.  

CPIM Exam FAQ

A Master Guide to Qualify

A master study guide will offer you a close view of how to undertake the exam. Not only will you build a stronger foundation with this guide, but also ensure that you don’t miss out on any important information. Every right direction is the very essence of this Preparatory Guide. Also, we will assure you that after you’re done with the preparation, you’ll feel confident in yourself. 

So, keeping that confidence alive, let’s begin with the first step of the guide.

Download the Exam Objectives 

To help their candidates out, most certification vendors like ASCM provide a detailed list of the subjects you can expect to encounter on the exam. This is the course outline as we have mentioned this earlier. This list breaks down what percentage of the exam is dedicated to each subject.

Always, always, always download the course outline, and tailor your study focus around them. Vendors don’t create these lists for fun — they want you to be aware of the most relevant subjects of an exam.

Certified in Production and Inventory Management (CPIM) Preparation Guide

Use ASCM Preparation Learning Resources 

Since all certification vendors want every candidate to qualify for the exam. Therefore, they provide you with various options as learning resources to choose from. So, in this section, we’re going to various learning resources.

 APICS CPIM Learning System

The APICS CPIM Learning System is a meticulous professional development and certification preparation program based on the APICS CPIM body of content. This particular learning system provides the candidate with reading materials and interactive web-based study tools.

Instructor-Supported

Instructor-supported online courses are administered which presents online APICS CPIM review courses which are really interactive and easily navigated for all the candidates. All the workshops are guided by instructors who have earned APICS certification and have years of supply chain management experience. To register, visit Fox Valley Technical College for more information on the APICS CPIM Online Classes.

Instructor-Led Training Program

The Instructor-led training program provides all the candidates with the necessary tools and preparation resources to complete the exam content effortlessly.  

Additional CPIM Study Tools & Support

APICS Dictionary & App

With this learning tool, candidates will master terms and definitions that one can encounter while studying for APICS exams with the current edition of the APICS Dictionary. This is the most extensive reference for supply chain and operations terminology. 

Exam Content Manual

This manual is free to all the ASCM PLUS and CORE members. This is recommended if you are beginning your preparation with the CPIM Exam Content Manual. It comprises of an overview of the curriculum with test specifications, test-taking advice, key terminology, and Q&A. 

Supply Chain Channel Online Community

This particular tool will allow the candidates to find a study group. Here every candidate can easily start a discussion. There are various ways to connect with other professionals through the Supply Chain Channel. The certification community will lead to improve your knowledge and improve your skills. 

Best Learning Resources

When it comes to best learning resources, you can begin with the links provided below:

CPIM Part 1:

CPIM Part 2:

Self Evaluate with Testprep Training

And, finally, it’s time for practice sessions. Take it from us, Self Evaluation is the only step you need in the end. The more you’re going to practice, it’s better for you.

Not only does it helps you understand the areas where you lack but also, ensure you’re strengthening your skills as well. So, go through as many practice tests as much you can. FOR MORE PRACTICE TEST, CLICK HERE!

CPIM Free Practice Test

Enrich your career with advanced learning skills and expert tutorials on CPIM Exam. Prepare and become Certified in Production and Inventory Management Now!

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