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

1. A company can easily change its workforce, but inventory carrying costs are high. Which of the followingstrategies would bemost appropriate during times of highly fluctuating demand?

A) Produce to demand
B) Produce at a constant level
C) Produce to the sales forecast
D) Produce to backorders

2. A company has deployed its own proprietary software for web hosting and order management. This software has beenrecognized as best-in-class. The proprietary software represents what defensive operational strategy used to sustain thecompany's business over time?

A) Difficult to substitute
B) Scarcity
C) Difficult to relocate
D) Difficult to copy

3. Which of the following observations in a manufacturing plant best illustrates the poka-yoke technique of process design?

A) The number of types of fasteners is reduced from 25 to 5.
B) Customized containers hold mixed sets of parts.
C) An andon is installed.
D) A part attribute defines correct orientation.

4. Which of the following statements is true about the mean time between failures (MTBF) measure?

A) Itis used for non-repairable products.
B) An increase in MTBF is proportional to an increase in quality.
C) Itis the same as operating life or service life.
D) Itis a useful measure of reliability.

5. An advantage of adopting a capacity-leading strategy is that:

A) all demand is satisfied, and profit is maximized.
B) there is sufficient capacity to meet demand.
C) there is sufficient demand to consume capacity.
D) overcapacity problems are minimized.

Solutions: