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

1. The major contribution of the production plan is to:

A) establish demand by end item.
B) establish the weekly build schedule.
C) identify key resources to support the master schedule.
D) provide authorization for the master schedule.

2. Reducing distribution network inventory days of supply will have which of the following impacts?

A) Increase turnovers and increase cash-to-cash cycle time.
B) Decrease turnovers and reduce cash-to-cash cycle time.
C) Increase turnovers and reduce cash-to-cash cycle time.
D) Decrease turnovers and increase cash-to-cash cycle time.

3. An advantage of applying ABC classification to a firm's replenishment items is that:

A) it distinguishes independent demand from dependent demand.
B) it allows planners to focus on critical products.
C) it provides better order quantities than the economic order quantity (EOQ]).
D) it allows the firm to utilize time-phased order point (TPOP).

4. Which of the following represents landed costs?

A) Duties levied on imports and exports
B) Combining smaller shipments to take advantage of bulk efficiencies
C) Purchasing and delivering a purchased product to its final destination
D) Supplier absorbing freight charges

5. A supplier making a part with a specified dimension of 50 mm + 0.3 mm changes the tolerance range to + 0.5 mm. Which ofthe following pairs correctly identifies the changes to the percentage of defective parts and the process capability index?

A) The percentage of defective parts decreases, and the process capability index decreases.
B) The percentage of defective parts increases, and the process capability index increases.
C) The percentage of defective parts increases, and the process capability index decreases.
D) The percentage of defective parts decreases, and the process capability index increases.

Solutions: