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

1. An analysis was done on a group of parts that showed a missed delivery resulting in lost sales on other product lines manytimes greater than the value of the initial lost sale. As a result, the company launched an initiative to increase the fill rate onthese parts to 100%. Currently, they have raised the fill rate to 99%. As they continue the initiative, what effects are mostlikely expected?

A) Operating costs and service level will both increase at the same rate.
B) Neither operating costs nor service level will increase.
C) Operating costs will increase slower than service level,
D) Operating costs will increase faster than service level.

2. A product family consists of 46 items, each having 5 features available and 6 options available. At which level of the bill ofmaterial (BOM) would it be most appropriate to forecast?

A) Final assembly level items
B) Both subassembly level and final assembly level items
C) Component level items
D) Subassembly level items

3. Which of the following conditions is required for an effective single-sourcing relationship?

A) The supplier must offer the lowest price per unit.
B) The organizations must be located close to each other.
C) Demand for the customer's products must be stable.
D) The organizations must be mutually dependent.

4. The trade-off of increasing safety stock to improve customer fill rate would be a decrease in:

A) transportation costs.
B) inventory turns.
C) A pipeline inventory.
D) sales revenue.

5. A company with stable demand that uses exponential smoothing to forecast demand would typically use a:

A) high beta value.
B) low beta value.
C) low alpha value.
D) high alpha value.

Solutions: