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

1. What is the purpose of a buffer in the theory of constraints (TOC)?

A) It opens an opportunity to exploit the system.
B) It identifies the root cause of the constraint.
C) It allows for processing jobs at a lower rate than demand.
D) It prevents unplanned idleness of the resource.

2. An advantage of applying ABC classification to a firm's replenishment items is that:

A) it distinguishes independent demand from dependent demand.
B) it allows planners to focus on critical products.
C) it provides better order quantities than the economic order quantity (EOQ]).
D) it allows the firm to utilize time-phased order point (TPOP).

3. A manufacturer wishes to decrease the time-to-market for a new product family. Which of thefollowing strategies should beused?

A) Increase the safety stocks for the new product's components.
B) Decrease the purchasing lot size for the new product's components.
C) Increase collaboration between the buyer and the supplier of new components.
D) Decrease the number of suppliers for components of the new product.

4. An outlier has been identified in the demand data for an item. The most appropriate next step would be to:

A) increase the length of the forecast time period.
B) advance the forecast model in time, without smoothing.
C) screen the outlier for manual review.
D) set the forecast value to the outlier limit.

5. The approved output of the distribution requirements planning (DRP) process is an input to which of the following planningprocesses?

A) Final assembly
B) Business
C) Master production 0
D) Strategic

Solutions: