APICS Updated CPIM-8.0 Exam Questions and Answers by alfie-james

Third-party logistics (3PL) services are external providers that handle various supply chain functions for a firm, such as transportation, warehousing, inventory management, and order fulfillment. By outsourcing these functions to a 3PL, a firm can reduce its investment in fixed assets, such as trucks, trailers, warehouses, and equipment. This can improve the firm’s liquidity and return on assets ratios, as well as lower its depreciation and maintenance costs. However, using a 3PL does not necessarily affect the firm’s retained earnings, accounts receivable, or intangible assets, which are influenced by other factors, such as profitability, sales, and goodwill. References:

•Third-Party Logistics (3PL) Guide: Process, Resources, And Benefits

•3PLs, Explained: The Complete Guide to Third-Party Logistics

•Understanding 3PL: The Role of Third-Party Logistics in 2024

A statistical safety stock calculation is based on the assumption that demand and lead time are normally distributed and independent. This method is suitable for end items with stable demand, as it can provide a reasonable estimate of the required safety stock to achieve a desired service level. Therefore, option C is correct. Option A is incorrect because components used in multiple end items may have dependent demand, which means that their demand is derived from the demand of the end items. Dependent demand may not follow a normal distribution and may require a different method of safety stock calculation. Option B is incorrect because new products at time of introduction may have uncertain or variable demand, which makes it difficult to apply a statistical safety stock calculation. Option D is incorrect because supply-constrained raw materials may have long and variable lead times, which also complicates the use of a statistical safety stock calculation. References: CPIM Part 2 Exam Content Manual, Version 8.0, Section E: Plan and Manage Inventory, Subsection E.2: Inventory Management Methods, p. 54.