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

1. Substituting capital equipment in place of direct labor can be economically justified for which of the following scenarios?

A) Functional layouts are being utilized
B) Implementing a pull system in production
C) Material prices are forecasted to increase
D) Volumes are forecasted to increase

2. External sustainability reporting and verification is an opportunity for a company to communicate its:

A) profitability.
B) confidence.
C) performance.
D) growth.

3. The master production schedule (MPS) and final assembly schedule (FAS) are most closely linked in which production strategy?

A) Make-to-order (MTQ)
B) Assemble-to-order (ATO)
C) Make-to-stock (MTS)
D) Engineer-to-order (ETO)

4. The cumulative available-to-promise (ATP) method is based on an assumption that available inventory in a period can becommitted to demand in that period and:

A) any future period in the planning horizon.
B) future periods beyond the DTF.
C) any period before the demand time fence (DTF).
D) future periods with a planned receipt.

5. A company's competitive business strategy is based on offering customized products or features and a rapid response tomarket shifts. The company's process technology and equipment should be characterized by which of the followingcombinations?

A) Product-dependent processes and automation based on product volume
B) Product-independent processes and flexible automation
C) Product-independent processes with parallel production lines
D) Continuous flow processes and a high degree of fixed automation

Solutions: