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

1. An organization has seen inventory increase every month for the past year and financial performance has net met expectations. Which of the following processes would mostappropriately address correctingthe problem?

A) Master scheduling
B) Sales and operations planning (S&OP)
C) Business planning
D) Detailed material planning

2. Product X sells for $20 each, and it has a variable cost of $5 per unit. The company sells 10,000 units per year and has afixed cost of $120,000. What is the break-even point in units for Product X?

A) 24,000
B) 10,000
C) 6,000
D) 8,000

3. The primary consideration in maintenance, repair, and operating (MRO) supply systems typically is:

A) stockout costs.
B) order quantity.
C) carrying costs.
D) shelf life.

4. Which of the following activities would be effective to mitigate the bullwhip effect?

A) Use a push system.
B) Reduce lead times.
C) Implement track and trace technology.
D) Increase inventory.

5. When deciding what to report externally regarding sustainability performance, a company should disclose:

A) past results and future strategies.
B) results of poor performance.
C) why current regulations are too costly.
D) results of acceptable performance.

Solutions: