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

1. Which of the following inventory management techniques is most responsive to changes in demand levels?

A) Periodic review system
B) Cycle counting
C) Two-bin system
D) ABC classification

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

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

3. Return on investment (ROI) is decreased by which of the following activities?

A) Increasing sales volume
B) Increasing cost of sales
C) Increasing prices
D) Reducing inventory levels

4. Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?

A) Increased intangible assets
B) Decreased retained earnings
C) Decreased fixed assets
D) Increased accounts receivable

5. A company with stable demand that uses exponential smoothing to forecast demand would typically use a:

A) low alpha value.
B) low beta value.
C) high alpha value.
D) high beta value.

Solutions: