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  1. Home
  2. APICS Certification
  3. CPIM-8.0 Exam
  4. APICS.CPIM-8.0.v2026-02-13.q305 Dumps
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Question 261

Which of the following criteria is used to determine safety stock in a distribution center (DC)?

Correct Answer: D
The probability of stocking out is the likelihood that the demand for an item will exceed the available inventory during a given period. It is one of the criteria used to determine safety stock in a distribution center (DC), as safety stock is inventory that is carried to protect against forecast errors and fluctuations in demand or supply. The higher the probability of stocking out, the more safety stock is needed to avoid customer dissatisfaction and lost sales. The other criteria are not directly related to safety stock. Economic order quantity (EOQ) is the order quantity that minimizes the total inventory holding and ordering costs. Seasonal index value is a measure of how demand varies according to different seasons or periods. Alpha factor level is a parameter used in exponential smoothing to adjust the forecast based on the error between the actual and forecasted demand. References: Safety Stock: A Contingency Plan to Keep Supply Chains Flying High, APICS CPIM 8 Planning and Inventory Management | ASCM
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Question 262

A newly hired Chief Information Security Officer (CISO) is now responsible to build a third-party assurance for their organization. When assessing a third-party, which of the following questions needs to be answered?

Correct Answer: D
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Question 263

Which of the following does a federated Identity Provider (IDP) need in order to grant access to identity information?

Correct Answer: D
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Question 264

One way to mitigate liability risk in the supply chain is to:

Correct Answer: B
One way to mitigate liability risk in the supply chain is to require traceability for components. Liability risk is the risk that a party may be held responsible for certain types of losses caused by its actions or products to third parties1. Traceability is the ability to track the origin, history, location, and movement of a product or a component through the supply chain2. Requiring traceability for components can help to mitigate liability risk in the supply chain by enabling the identification and verification of the quality, safety, and compliance of the components, as well as the detection and prevention of counterfeit, defective, or hazardous components.
Traceability can also facilitate the recall, repair, or replacement of faulty components, and the allocation of responsibility and accountability among the supply chain partners in case of a liability claim34. References: 1 What is a Liability Risk? - Definition from Insuranceopedia 5 2 Traceability - Wikipedia 6 3 Supply Chain Liability in the Corporate Sustainability Due Diligence ... 7 4 CPIM Exam References - Association for Supply Chain Management 8
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Question 265

A company confirms a customer order based on available capacity and inventory, even though the current production plan does not cover the entire order quantity. This situation is an example of what type of order fulfillment policy?

Correct Answer: B
Capable-to-promise (CTP) is a type of order fulfillment policy that confirms a customer order based on the available capacity and inventory, as well as the current production plan and schedule. CTP calculates the earliest possible delivery date for a customer order, considering the existing demand and supply situation. CTP allows a company to accept an order that exceeds the current available inventory, as long as it can produce the remaining quantity within the customer's requested delivery time. CTP helps to improve customer service, reduce inventory costs, and increase production efficiency12. Reference: 1 Capable to Promise (CTP) - Definition, Calculation, and Examples 3 2 CPIM Exam Reference - Association for Supply Chain Management
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