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

1. Which of the following strategies can improve the effectiveness of a company's customer value proposition and enhance itsdifferentiation in the market?

A) Adopt best practices that improve product design.
B) Invest in productivity enhancing technological improvements.
C) Relocate high-cost activities to other geographic areas.
D) Outsource activities to outside vendors or contractors.

2. A machine is suddenly having excessive downtime. Which of the following tools would be used in a root cause correctiveaction process to determine the problem?

A) Standardized work analysis chart
B) A3 method
C) Balance chart
D) Failure mode effects analysis (FMEA)

3. The cumulative available-to-promise (ATP) method is based on an assumption that available inventory in a period can becommitted to demand in that period and:

A) any period before the demand time fence (DTF).
B) any future period in the planning horizon.
C) future periods beyond the DTF.
D) future periods with a planned receipt.

4. A life cycle assessment (LCA) would be used to determine:

A) how an item should be scheduled.
B) if risk pooling would reduce inventory investment.
C) the length of a long-term agreement.
D) environmental aspects and impacts.

5. A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer servicelevels for customers B and C?

A) Customer B and C have same service level
B) Customer B has higher service level
C) 100% service levels for B and C
D) Customer C has higher service level

Solutions: