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

1. An advantage of adopting a capacity-leading strategy is that:

A) all demand is satisfied, and profit is maximized.
B) overcapacity problems are minimized.
C) there is sufficient capacity to meet demand.
D) there is sufficient demand to consume capacity.

2. In a make-to-stock (MTS) environment, which of the following actions would improve thetrade-off between the cost ofinventory and the level of customer service?

A) Reducing manufacturing overtime
B) Decreasing the frozen time zone
C) Eliminating raw material stockouts
D) Improving estimates of customer demand

3. Which of the following statements is true about the mean time between failures (MTBF) measure?

A) Itis used for non-repairable products.
B) Itis a useful measure of reliability.
C) Itis the same as operating life or service life.
D) An increase in MTBF is proportional to an increase in quality.

4. The sales and operations planning (S&OP) process in an assemble-to-order (ATO) production environment focuses oncontrol of:

A) raw material inventory.
B) key intermediate part inventory.
C) end product backlog.
D) finished goods inventory.

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

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

Solutions: