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APICS CPIM EXAM 1 NEW EXAM REVIEW 2022
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APICS CPIM EXAM 1 NEW EXAM REVIEW 2022
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APICS CPIM EXAM 1 NEW EXAM REVIEW 2022ABC classification - Process of classifying items in descending order based on annual
dollar volume or some other criteria. The list is then split into 3 classes - A, B, and C. A
represents 10-20% of items but 50-70% of dollar volume; B represents 20% of items
and 20% of dollar volume; C represents 60-70% of items but 10-30% of dollar volume.
This principle states that effort and money can be saved by applying looser controls to
the low dollar volume items (C class) than the higher dollar volume items (A & B
classes) and applies to inventory, purchasing, sales, etc.
Advance ship notice (ASN) - Electronic data interchange (EDI) notification of shipment
of goods
Andon - Electronic board that provides visibility of floor status and gives info to help
coordinate efforts linked to work centers; green light = running, red light = stop, yellow
light = needs attention
Anticipation inventories - Any additional inventory above basic pipeline stock to cover
projected trends of increased sales, planned promo programs, seasonal fluctuation,
plant shutdowns, and vacations
Assemble-2-order - Production environment where a good or service can be assembled
after receipt of a customer's order. The key components (or ingredients) used in
assembly or finishing process are planned and stocked in anticipation of a customer
order. Receipt of order initiates assembly of the customized product. Useful strategy
when a large number of end products can be assembled from common components
Available inventory - On-hand inventory balance minus allocations, reservations,
backorders, and quantities held for quality problems
Backflush - Method of inventory bookkeeping where the book inventory is automatically
reduced after completion of activity on component's upper-level parent item based on
what should have been used as specified on the BOM and allocation records;
disadvantage is difference between book inventory and physical OH inventory
Backhauling - Process of transportation returning from original destination point to point
of origin; can be full, partial, or empty load
Backlog - All customer orders received but not yet shipped (open orders or order board)
Backorder - Unfulfilled customer order or commitment. An immediate (or past due)
demand against an item whose inventory is insufficient to satisfy the demand
Back scheduling - Technique for calculating operation start dates and due dates; start
with order due date and work backwards to calculate required start date and/or due
dates for each operation
, Batch - Qty scheduled to be produced or in production; type of mfg process used to
produce items with similar designs & cover wide range of order volumes; items ordered
are of a repeat nature
Bill of lading - Document issued by a carrier which details a shipment of merchandise
and gives title of that shipment to a specified party.
Bill of material (BOM) - Listing of all the subassemblies, intermediates, parts, and raw
materials that go into a parent assembly showing the quantity of each required to make
an assembly; used in conjunction with the master production schedule to determine the
items for which purchase requisitions and production orders must be released; list of all
the materials needed to make one production run of a product, by a contract
manufacturer, of piece parts/components for its customers
Bonded warehouse - Buildings or parts of a building designated by Sec of Treasury for
storing imported goods, operated under supervision of US Customs
Bottleneck - Facility, function, department, or resource whose capacity is less than the
demand placed upon it; machine or work center
Break-bulk - Dividing truckloads of similar items into smaller, more appropriate qty's for
use
Buffer - Qty of materials awaiting further processing; can refer to raw materials, semi-
finished stores or hold points, or a work backlog that is purposely maintained behind a
work center; in TOC, it can be time or material and support thruput and/or due date
performance maintained at the constraint, convergent points (with a constraint part),
divergent points, and shipping points
Buffer management - In TOC, process where all expediting in a shop is driven by what
is scheduled to be in the buffers (constraint, shipping, or assembly); by expediting into
buffers, system avoids idleness at the constraint and prevents missed due date
Business plan - Statement of long-range strategy and revenue, cost, and profit
objectives usually accompanied by budgets, a projected balance sheet, and a cash flow
(source and application of funds) statement; document consisting of the business
details (organization, strategy, and financing tactics)
Capable-2-promise - Process of committing orders against available capacity as well as
inventory. May involve multiple manufacturing or distribution sites. Used to determine
when a new or unscheduled customer order can be delivered. Employs a finite-
scheduling model of manufacturing system to determine when an item can be delivered.
Includes any constraints that might restrict production, such as availability of resources,
lead times for raw materials or purchased parts, and requirements for lower-level
components or subassemblies. The resulting delivery date takes into consideration
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