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

1. A manufacturer wishes to decrease the time-to-market for a new product family. Which of thefollowing strategies should beused?

A) Decrease the purchasing lot size for the new product's components.
B) Increase the safety stocks for the new product's components.
C) Increase collaboration between the buyer and the supplier of new components.
D) Decrease the number of suppliers for components of the new product.

2. To facilitate transportation efficiency and inventory management, companies frequently use:

A) automated storage/retrieval systems (AS/RS).
B) small lot sizes.
C) standardized containers.
D) contract carriers.

3. A technique to manage load variability would be to:

A) use capacity bills to provide a rough-cut method of planning total-time-per-unit value.
B) apply capacity planning using overall factors (CPOF) to identify priority items at the work center.
C) plan additional safety capacity as a part of total available capacity to meet unplanned demand.
D) design the shop floor with machines that sit idle until additional demand requires their use.

4. Which of the following is an example of implosion in distribution requirements planning (DRP)?

A) Redistributing inventory from several field locations and centralizing it at the manufacturing facility
B) Redistributing inventory from several warehouses to one central warehouse N
C) Gathering information from several field locations and aggregating it at the manufacturing facility
D) Gathering information from the manufacturing facility and distributing it to the field locations

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

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

Solutions: