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

1. Given the information below, reducing which measure by 10% would contribute most to shortening the cash-to-cash cycletime?

A) Cost of capital
B) Inventory value
C) Accounts receivable
D) Accounts payable

2. 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

3. The capacity requirements plan is used primarily to:

A) determine the priority of orders.
B) balance capacity and load at work centers.
C) calculate the level of available capacity.
D) determine the overall product load profile.

4. Which of the following activities would be effective to mitigate the bullwhip effect?

A) Increase inventory.
B) Implement track and trace technology.
C) Reduce lead times.
D) Use a push system.

5. What is a result of effective production activity control (PAC)?

A) Fewer machine hours are required for production
B) Available capacity is increased
C) Less scrap and rework on the shop floor
D) Actual input/output matches planned input/output

Solutions: