Content

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Supply
Management
Integration

CPSM (Exam 2)

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WORKSHEETS Competency
(Logistics and
Materials

The following worksheets are supplemental materials Management)

within the CPSM Instructor Courseware. You may utilize
the worksheets to condense key information on
Competencies or Tasks.
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© 2018 ISM All Rights Reserved

No part of this publication may be reproduced without written permission from the
 CPSM Exam 2
Supply Management
Integration – Logistics and
Materials Management

CPSM® Worksheets Page 2

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-1
 Discuss considerations when selecting a transportation modality

 Describe how freight rates are determined and the basis for the rates

 Identify four groups of computerized transportation activities

 List key considerations when relocating or moving products

 List 3 technology systems utilized in logistics

CPSM® Worksheets Page 3

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© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-2
 Outline the issues surrounding cross border transactions including
o Documentation

o Federal regulations

o Customs requirements

o Broker arrangements

 Name 5 basic modes of transportation, their primary uses and

advantages/disadvantages of each

 Describe the roles of shippers, customers, suppliers, freight forwarders

CPSM® Worksheets Page 4

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-2
 What is the impact of traffic patterns?

 What practices lead to gains from managing shipping routes?

 What are Incoterms? How are they used? What does the choice of Incoterm
determine?

 Describe C-TPAT and tell how an organization can participate

CPSM® Worksheets Page 5

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© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-2
 Name 4 considerations in selecting mode of transportation

 Define multimodal shipments

 Identify whether the following are import or export documents and describe the
use of each

o Arrival notice

o Bill of lading

o Carrier’s certificate and release order

CPSM® Worksheets Page 6

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© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-2
o Certificate of origin

o Commercial invoice

o Consular invoice

o Delivery instructions

o Delivery order

CPSM® Worksheets Page 7

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-3
 Name the common standard for specifying freight terms

 What are delivery tracking systems?

 List commonly used delivery performance measurements

 Contrast visible versus latent damage

CPSM® Worksheets Page 8

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-3
 Define freight claims and describe how they are resolved

 Define reverse logistics

CPSM® Worksheets Page 9

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© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-4
• What are some of the benefits of a freight audit procedures?

• List 4 modals of transportation and the cost elements of each

• US transportation terms are determined by which organization?

• What are some purposes of Incoterms?

• What are the 3 benefits from minimizing lead times in relation to the cost of
inventory?

CPSM® Worksheets Page 10

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-5
 List 3 types of inventory classification systems

 Define and describe order picking and stock replenishing

 Name 3 components of optimizing materials handling and minimizing cost

 Describe the differences between virtual and real warehouses

CPSM® Worksheets Page 11

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-5
 What are the differences between Build-up vs Build-out?

 What is a 3PL, 4PL, 5PL and what does it do?

 List the steps involved in improving logistical performance using a scorecard

CPSM® Worksheets Page 12

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-6
 What are the differences between centralized vs. decentralized warehousing?

 Define a hub and spoke warehouse structure and the benefits?

 What items must be considered with geographic location?

 Define 3PL, 4PL and 5PL logistics providers

CPSM® Worksheets Page 13

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-7
 Name 5 warehouse processes that require key KPI’s

 Name 2 national regulatory compliance organizations

 Name at least 3 areas that impact the environment in a warehouse that can be
calculated.

 Define 4 options for excess or obsolete inventory disposition

 Define at least 4 warehouse security issues beyond physical inventory

CPSM® Worksheets Page 14

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-8
 Describe the components and uses of RFID, bar coding, UID and IUID

 What is business continuity planning?

 Identify the objectives and key considerations when planning a warehouse

management system

 Name the objectives of warehouse facility design

 Describe 4 types of storage location systems

CPSM® Worksheets Page 15

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-8
 Name 5 reasons customer requirements vary

 In addition to customer requirements, identify 4 areas of costs involved in

warehouse management

 Describe the differences between private and public warehouses and

centralized and decentralized structures

 Define 3 replenishment systems used in WMS

 Describe 3 inventory classification systems

CPSM® Worksheets Page 16

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-8
 What is the purpose of cycle counting?

 What is a perpetual record system?

 How are stock keeping units (SKU) established?

CPSM® Worksheets Page 17

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-9
 Define asset classification, current assets, fixed assets, intangible assets,
investment assets

 List SOX mandates for tracking fixed assets

 Identify the key performance indicators on how well an organization is

performing financially

 What are internal distribution and transportation?

CPSM® Worksheets Page 18

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-9
 Define asset management and compare inventory of expendable goods
versus inventory of fixed assets

 Define asset recovery and state its objective

CPSM® Worksheets Page 19

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-10
 What is the difference between expedited and de-expedited orders?

 Name 4 items that should be comprehended in an expediting policy or

procedure?

 What are 3 factors that drive expediting orders?

 Name 4 things that can be done to decrease the frequency of expediting and
de-expediting?

CPSM® Worksheets Page 20

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-11
 What are the three main costs of inventory?

 Name 4 costs tied to shortages

 Define:
o ABC Analysis

o Market intelligence

o Fixed order quantity

o Fixed order period

CPSM® Worksheets Page 21

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-12
 Name 2 requirement for packaging design

 Define 4 reasons for packaging certification evaluation and testing

 What are 3 goals for package cost optimization?

CPSM® Worksheets Page 22

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© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 2-F-13
 Discuss investment recovery and investment recovery principles

 Define value stream mapping

 Why is security required in the disposal of inventory and what are some of the
regulations that apply?

 What options are available for disposal?

 Identify and define categories of disposable goods

CPSM® Worksheets Page 23

®
© Copyright 2018 Institute for Supply Management . All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.