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

1. The results from responding to uncertainty in the supply chain by exaggerating lead times and increasing lot sizes is called:

A) bullwhip effect.
B) forward integration.
C) supply and demand.
D) process train.

2. To facilitate transportation efficiency and inventory management, companies frequently use:

A) standardized containers.
B) contract carriers.
C) automated storage/retrieval systems (AS/RS).
D) small lot sizes.

3. Shop backlogs remain constant when:

A) capacity is assumed to be infinite.
B) shop orders are released at a steady rate.
C) work input equals work output,
D) forecasts are updated on the basis of the longest lead time item.

4. Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?

A) Decreased fixed assets
B) Increased intangible assets
C) Increased accounts receivable
D) Decreased retained earnings

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

Solutions: