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

1. An analysis was done on a group of parts that showed a missed delivery resulting in lost sales on other product lines manytimes greater than the value of the initial lost sale. As a result, the company launched an initiative to increase the fill rate onthese parts to 100%. Currently, they have raised the fill rate to 99%. As they continue the initiative, what effects are mostlikely expected?

A) Neither operating costs nor service level will increase.
B) Operating costs and service level will both increase at the same rate.
C) Operating costs will increase slower than service level,
D) Operating costs will increase faster than service level.

2. An example of a cradle-to-cradle sustainability model would be:

A) a bank offers the lowest interest rates on loans to firms that are committed to using recycled materials andimplementing zero-waste initiatives in their processes.
B) A a laundry service collects dirty baby clothes from families; cleans the clothes inlarge, efficient batches;and thensorts and delivers the clothes back to each family.
C) a coffee shop collects paper waste in its restaurants, has a selected supplier collect the paper waste to be recycled, and then purchases paper products from that supplier.
D) a company uses wood that has been gathered from multiple sources to construct items, such as beds andtoys for babies and young children.

3. The master production schedule (MPS) and final assembly schedule (FAS) are most closely linked in which production strategy?

A) Engineer-to-order (ETO)
B) Make-to-order (MTQ)
C) Make-to-stock (MTS)
D) Assemble-to-order (ATO)

4. When deciding what to report externally regarding sustainability performance, a company should disclose:

A) results of acceptable performance.
B) results of poor performance.
C) past results and future strategies.
D) why current regulations are too costly.

5. Locating service facilities differs from locating manufacturing or distribution facilities primarily because service locationdecisions are:

A) driven by competition, while manufacturing and distribution location decisions are not.
B) driven by revenue concerns, while manufacturing and distribution location decisions are driven by costs.
C) driven by real estate costs, while manufacturing and distribution location decisions are driven by productcosts.
D) determined after surveying customers, while manufacturing and distribution location decisions are determined after surveying suppliers.

Solutions: