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APICS Certified in Planning and Inventory Management(Part 2) Sample Questions:

1. A part is sold as a service part, and it is also used as a component in another part. Which ofthe following statements aboutthe planning for this part is true?

A) The service part demand can be included in the gross requirements.
B) Its low-level code is zero.
C) It shouldn't have any safety stock.
D) The material requirements for the part will be understated.

2. The benefits of standardized work include:

A) shorter takt time.
B) consistent cycle time.
C) more innovation.
D) less finished goods inventory.

3. A company can easily change its workforce, but inventory carrying costs are high. Which of the followingstrategies would bemost appropriate during times of highly fluctuating demand?

A) Produce to the sales forecast
B) Produce to demand
C) Produce to backorders
D) Produce at a constant level

4. Return on investment (ROI) is decreased by which of the following activities?

A) Increasing cost of sales
B) Increasing prices
C) Reducing inventory levels
D) Increasing sales volume

5. A company has deployed its own proprietary software for web hosting and order management. This software has beenrecognized as best-in-class. The proprietary software represents what defensive operational strategy used to sustain thecompany's business over time?

A) Difficult to relocate
B) Scarcity
C) Difficult to substitute
D) Difficult to copy

Solutions: