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

1. 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

2. The demonstrated capacity of equipment in a process flow is $1,200 per day. Due to a malfunction in a feeder line, utilization of the equipment is reduced by 25% on Day 6. If the efficiency remains unchanged at 110%, what would the output be on Day 6?

A) $900
B) $330
C) $300
D) $990

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

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

4. "We have observed the inventory system does not handle plastic parts well." Whatshould be added to the problemstatement to make it more useful?

A) Criteria for selecting the improvement team
B) Measurements that help describe the problem
C) Description of who is responsible for the problem
D) Guidance to which problem-solving tools should be used

5. Fixed order quantity = 100 units
Lead time = 2 weeks
Safety stock = 25 units
What is the projectedavailable balance in period 5?

A) 105 units
B) 30 units
C) 130 units
D) 70 units

Solutions: