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The basic concepts in managing the complete flow of materials in a supply chain from suppliers to customers are covered in the Basics module. This module covers manufacturing, distribution, service, and retail industries. This includes the fundamental relationships in the design, planning, execution, monitoring, and control that occur. Knowledge of the material in this module is assumed as a prerequisite for the other APICS CPIM modules, which cover similar topics in much greater depth.

Topics include:

  • Understanding basic business-wide concepts, including understanding various supply chain environments
  • Managing demand, including markets and customer expectations
  • Designing products, processes, and information systems
  • Understanding supply issues including inventory costs, functions, and metrics

Objectives:

  • Explain the role, objectives, and responsibilities of materials management.
  • Describe basic forecasting principles and techniques.
  • Explain the functions of production planning and master scheduling.
  • Explain the role of material requirements planning in the planning process.
  • Describe the objectives of capacity management and how it relates to priority planning.
  • Describe the purpose of inventory and the objectives of inventory management.
  • Define purchasing, purchasing objectives, and the purchasing cycle.
  • Demonstrate how lean and six sigma and quality control tools can reduce lot size, lead time, and work in progress.
  • Explain the role of theory of constraints and constraints management.