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

1. The approved output of the distribution requirements planning (DRP) process is an input to which of the following planningprocesses?

A) Final assembly
B) Strategic
C) Master production 0
D) Business

2. The major contribution of the production plan is to:

A) establish demand by end item.
B) provide authorization for the master schedule.
C) identify key resources to support the master schedule.
D) establish the weekly build schedule.

3. If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will:

A) increase in direct (linear) proportion.
B) increase at an increasing rate.
C) increase at a decreasing rate.
D) remain the same.

4. Which of the following factors typically would distort a sales forecast that is based solely on shipment history?

A) Material shortages
B) Customer demands
C) Labor rate changes
D) Currency exchange rates

5. The horizon for forecasts that are input to the sales and operations planning (S&O0P) process should be long enough that:

A) supply constraints can be resolved.
B) required resources can be properly planned.
C) cumulative forecast deviation approaches zero.
D) planned product launches can be incorporated.

Solutions: