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

1. Which of the following criteria is used to determine safety stock in a distribution center (DC)?

A) Seasonal index value
B) Alpha factor level
C) Economic order quantity (EOQ) N
D) Probability of stocking out

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

A) 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.
B) a company uses wood that has been gathered from multiple sources to construct items, such as beds andtoys for babies and young children.
C) 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.
D) 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.

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

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

4. Which of the following trade-offs should be evaluated when determining where to place inventory in a multi-echelon supplychain network?

A) Purchase cost and shrinkage rates
B) Production cost and lot sizequantity
C) Customer price and order quantity
D) Transportation cost and delivery time

5. Which of the following environments would benefit most from full pegging?

A) Assemble-to-order (ATO)
B) Make-to-stock (MTS)
C) Distribute-to-order
D) Make-to-order (MTO)

Solutions: