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

1. Substituting capital equipment in place of direct labor can be economically justified for which of the following scenarios?

A) Material prices are forecasted to increase
B) Functional layouts are being utilized
C) Volumes are forecasted to increase
D) Implementing a pull system in production

2. Potential reasons to make instead of buy a product may include:

A) less capital investment, large volume changes, and reduce cost.
B) eliminate risks associated with single sourcing, create intermittent flow, and reduce cost.
C) maintain quality, reduce cost, and keep confidential processes within the firm.
D) maintain core competencies, increase capital expense, and reduce cost.

3. An online retailer moves from delivering hard copy books to offering digital downloads only. This action may result in an increased possibility of:

A) supply disruptions.
B) supply delays.
C) loss of intellectual property.
D) forecast inaccuracy.

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

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

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

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

Solutions: