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

1. Work Center 1 has an available capacity of 1,200 hours per month. Which of the following amounts represents thecumulative differencebetweenthe required capacity and the available capacity of Months 1 through 37

A) 150
B) 1,250
C) 3,750
D) 50

2. The trade-off of increasing safety stock to improve customer fill rate would be a decrease in:

A) transportation costs.
B) A pipeline inventory.
C) sales revenue.
D) inventory turns.

3. A company's competitive business strategy is based on offering customized products or features and a rapid response tomarket shifts. The company's process technology and equipment should be characterized by which of the followingcombinations?

A) Product-independent processes with parallel production lines
B) Product-dependent processes and automation based on product volume
C) Product-independent processes and flexible automation
D) Continuous flow processes and a high degree of fixed automation

4. Which of the following stock location systems would you use in a repetitive manufacturing, lean environment?

A) Fixed location
B) Floating location
C) Central storage N
D) Point-of-use storage

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

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

Solutions: