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

1. Manufacturing flexibility can be measured by using:

A) cycle time,
B) changeover time.
C) labor productivity.
D) scrap level.

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

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

3. Locating service facilities differs from locating manufacturing or distribution facilities primarily because service locationdecisions are:

A) determined after surveying customers, while manufacturing and distribution location decisions are determined after surveying suppliers.
B) driven by revenue concerns, while manufacturing and distribution location decisions are driven by costs.
C) driven by real estate costs, while manufacturing and distribution location decisions are driven by productcosts.
D) driven by competition, while manufacturing and distribution location decisions are not.

4. An outlier has been identified in the demand data for an item. The most appropriate next step would be to:

A) screen the outlier for manual review.
B) set the forecast value to the outlier limit.
C) increase the length of the forecast time period.
D) advance the forecast model in time, without smoothing.

5. In a lean environment, one uses material requirements planning (MRP) processing primarily to:

A) calculate average daily demand.
B) determine where to use supermarkets.
C) determine the kanban circuit locations.
D) create plans to share with suppliers.

Solutions: