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

1. Which of the following factors is considered a carrying cost?

A) Scrap rate
B) Setup
C) Transportation
D) Obsolescence

2. The primary consideration in maintenance, repair, and operating (MRO) supply systems typically is:

A) stockout costs.
B) carrying costs.
C) order quantity.
D) shelf life.

3. An online retailer moves from delivering hard copy books to offering digital downloads only. This action may result in an increased possibility of:

A) supply delays.
B) supply disruptions.
C) loss of intellectual property.
D) forecast inaccuracy.

4. Rivalry among competing sellers is generally weaker when:

A) buyer demand is growing rapidly.
B) buyer costs to switch brands are low.
C) the number of rivals increases, and rivals are of roughly equal size and competitive capability.
D) the products of rival sellers are commodities.

5. In a lean environment, one uses material requirements planning (MRP) processing primarily to:

A) create plans to share with suppliers.
B) determine the kanban circuit locations.
C) calculate average daily demand.
D) determine where to use supermarkets.

Solutions: