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

1. Which of the following factors is considered a carrying cost?

A) Obsolescence
B) Transportation
C) Scrap rate
D) Setup

2. An online retailer moves from delivering hard copy books to offering digital downloads only. This action may result in an increased possibility of:

A) loss of intellectual property.
B) forecast inaccuracy.
C) supply disruptions.
D) supply delays.

3. Which of the following is the fundamental difference between finite loading and other capacity planning approaches?

A) It considers adjustments to plans based on planned capacity utilization.
B) It can use historical information to drive decision-making processes.
C) It is highly dependent on advanced computer software to function effectively.
D) It is only managed by shop floor supervisors.

4. Which of the following is an example of implosion in distribution requirements planning (DRP)?

A) Redistributing inventory from several field locations and centralizing it at the manufacturing facility
B) Redistributing inventory from several warehouses to one central warehouse N
C) Gathering information from the manufacturing facility and distributing it to the field locations
D) Gathering information from several field locations and aggregating it at the manufacturing facility

5. Potential reasons to make instead of buy a product may include:

A) less capital investment, large volume changes, and reduce cost.
B) maintain core competencies, increase capital expense, and reduce cost.
C) eliminate risks associated with single sourcing, create intermittent flow, and reduce cost.
D) maintain quality, reduce cost, and keep confidential processes within the firm.

Solutions: