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

1. When forecasting the demand for a product, the highest percentage of error will occur at the:

A) market segment.
B) master schedule.
C) field warehouses.
D) central warehouse.

2. In an assemble-to-order (ATO) environment, option overplanning is used to:

A) verify appropriate inventory levels,
B) schedule detailed production.
C) compensatesfor forecast bias.
D) address uncertainty in the product mix.

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

4. A manufacturer wishes to decrease the time-to-market for a new product family. Which of thefollowing strategies should beused?

A) Decrease the number of suppliers for components of the new product.
B) Decrease the purchasing lot size for the new product's components.
C) Increase the safety stocks for the new product's components.
D) Increase collaboration between the buyer and the supplier of new components.

5. Components of an organization's immediate industry and competitive environment include:

A) interest rates.
B) substitute products.
C) sociocultural forces,
D) political factors.

Solutions: