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

1. A statistical safety stock calculation would be appropriate for:

A) supply-constrained raw materials.
B) new products at time of introduction.
C) end items with stable demand.
D) components used in multiple end items.

2. When forecasting the demand for a product, the highest percentage of error will occur at the:

A) central warehouse.
B) market segment.
C) field warehouses.
D) master schedule.

3. A life cycle assessment (LCA) would be used to determine:

A) if risk pooling would reduce inventory investment.
B) how an item should be scheduled.
C) the length of a long-term agreement.
D) environmental aspects and impacts.

4. Which of the following represents landed costs?

A) Combining smaller shipments to take advantage of bulk efficiencies
B) Supplier absorbing freight charges
C) Duties levied on imports and exports
D) Purchasing and delivering a purchased product to its final destination

5. A focused differentiation strategy is best chosen with:

A) a broad cross-section of buyers and pursuit of a unique competitive advantage.
B) a narrow buyer segment and pursuit of a unique competitive advantage.
C) a narrow buyer segment and pursuit of a lower cost competitive advantage.
D) a broad cross-section of buyers and pursuit of a lower cost competitive advantage.

Solutions: