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

1. Reducing distribution network inventory days of supply will have which of the following impacts?

A) Decrease turnovers and increase cash-to-cash cycle time.
B) Increase turnovers and increase cash-to-cash cycle time.
C) Decrease turnovers and reduce cash-to-cash cycle time.
D) Increase turnovers and reduce cash-to-cash cycle time.

2. A 58 environment should be maintained for which of the following reasons?

A) To prepare for customer visits
B) To support standard work
C) To promote level loading
D) To standardize training

3. A vendor-managed inventory (\VMI) program provides a benefit to the buying company in which of the following ways?

A) Reduces work in process (WIP)
B) Reduces material cost
C) Reduces the number of quality notifications
D) Reduces administrative expenses

4. A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer servicelevels for customers B and C?

A) Customer B has higher service level
B) 100% service levels for B and C
C) Customer C has higher service level
D) Customer B and C have same service level

5. A part is sold as a service part, and it is also used as a component in another part. Which ofthe following statements aboutthe planning for this part is true?

A) The service part demand can be included in the gross requirements.
B) The material requirements for the part will be understated.
C) Its low-level code is zero.
D) It shouldn't have any safety stock.

Solutions: