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

1. In the supplier selection process, what will be the potential advantages of multiple sourcing?

A) Long relationship and short lead times
B) Mutual trust and cooperation
C) More supplier options and better product development
D) Lower price and reduced risk

2. In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:

A) reduced forecast variability.
B) fewer customer defections.
C) earlier identification of shifts in customer preferences.
D) fewer customer order changes.

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

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

4. In a make-to-order (MTO) environment, inputs to sales and operations planning (S&0P) should include the:

A) finished goods inventory.
B) work-in-process (WIP) inventory.
C) projected backlog of customer orders.
D) available-to-promise (ATP) data.

5. Product X sells for $20 each, and it has a variable cost of $5 per unit. The company sells 10,000 units per year and has afixed cost of $120,000. What is the break-even point in units for Product X?

A) 24,000
B) 10,000
C) 6,000
D) 8,000

Solutions: