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

1. Which of the following outcomes is a benefit of mixed-model scheduling?

A) Fewer setups
B) Fewer material shortages
C) Increased inventory
D) Improved demand response

2. Which of the following criteria is used to determine safety stock in a distribution center (DC)?

A) Seasonal index value
B) Alpha factor level
C) Probability of stocking out
D) Economic order quantity (EOQ) N

3. The primary consideration in maintenance, repair, and operating (MRO) supply systems typically is:

A) order quantity.
B) stockout costs.
C) shelf life.
D) carrying costs.

4. Which of the following activities represents waste in a system?

A) A production forecast is issued to the supplier.
B) A purchase order is issued to the supplier for each delivery requirement.
C) More kanbans with smaller quantities are added to the supply chain.
D) A kanban is eliminated from the system.

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

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

Solutions: