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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) Transportation
C) Setup
D) Obsolescence

2. If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will:

A) increase at a decreasing rate.
B) increase at an increasing rate.
C) increase in direct (linear) proportion.
D) remain the same.

3. A process capability study would be necessary in a laboratory when:

A) frequent failures are occurring.
B) A test results are consistently late.
C) a new technician is hired.
D) hours of operation are to be extended.

4. Providing a realistic basis for setting internal performance targets can be accomplished through:

A) breakthrough innovation.
B) benchmarking.
C) best practices.
D) beta testing.

5. Which of the following represents landed costs?

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

Solutions: