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

1. Which of the following conditions is required for an effective single-sourcing relationship?

A) The organizations must be located close to each other.
B) Demand for the customer's products must be stable.
C) The organizations must be mutually dependent.
D) The supplier must offer the lowest price per unit.

2. The sales and operations planning (S&OP) process in an assemble-to-order (ATO) production environment focuses oncontrol of:

A) end product backlog.
B) finished goods inventory.
C) key intermediate part inventory.
D) raw material inventory.

3. A focused differentiation strategy is best chosen with:

A) a narrow buyer segment and pursuit of a unique competitive advantage.
B) a broad cross-section of buyers and pursuit of a unique competitive advantage.
C) a broad cross-section of buyers and pursuit of a lower cost competitive advantage.
D) a narrow buyer segment and pursuit of a lower cost competitive advantage.

4. An advantage of adopting a capacity-leading strategy is that:

A) all demand is satisfied, and profit is maximized.
B) overcapacity problems are minimized.
C) there is sufficient demand to consume capacity.
D) there is sufficient capacity to meet demand.

5. In a lean environment, the batch-size decision for planning "A" items would be done by:

A) lot-for-lot (L4L).
B) periodic order quantity.
C) least total cost.
D) min-max.

Solutions: