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

1. Return on investment (ROI) is decreased by which of the following activities?

A) Increasing prices
B) Increasing cost of sales
C) Increasing sales volume
D) Reducing inventory levels

2. A benefit of the ISO 9000 series of specifications is that:

A) the need for supplemental surveys and supplier visits is eliminated.
B) purchasers may accept 130certifications, minimizing additional surveys.
C) the responsibility for supplier auditing and selection can be outsourced.
D) suppliers are approved automatically for use by all purchasers.

3. Which of the following methods most likely introduces a temporary variance betweenthe inventory balance and theinventory record?

A) Inventory write-off
B) Backflushing
C) Cycle count
D) Kanban

4. A company can easily change its workforce, but inventory carrying costs are high. Which of the followingstrategies would bemost appropriate during times of highly fluctuating demand?

A) Produce to the sales forecast
B) Produce at a constant level
C) Produce to demand
D) Produce to backorders

5. In a lean environment, one uses material requirements planning (MRP) processing primarily to:

A) determine where to use supermarkets.
B) determine the kanban circuit locations.
C) calculate average daily demand.
D) create plans to share with suppliers.

Solutions: