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

1. A company sold 8,400 units last year. Average inventory investment was $42,000. Whatwas the inventory turns ratio,knowing that the unit cost is $207?

A) 0.20
B) 5
C) 0.25
D) 4

2. In which of the following situations would the use of a failure mode effect analysis (FMEA) be most appropriate?

A) During the define phase of asix-sigmaproject
B) Prior to a new product introduction (NPI)
C) After a one-time quality incident investigation
D) During evaluation of a new market opportunity

3. When designing a production cell, which of the following items would be the most important consideration?

A) The taketime requirement for each operator to meet the monthly production goals of the plant
B) The unit per hour requirement for the production cell to meet the sales forecast
C) The output rate for the first operation and move time after the last workstation
D) The flow of materials into the cell and sequencing of operations to minimize total cycle time

4. A company can easily change its workforce, but inventory carrying costs are high. Which of the followingstrategies would bemost appropriate during times of highly fluctuating demand?

A) Produce to backorders
B) Produce at a constant level
C) Produce to demand
D) Produce to the sales forecast

5. The sales and operations planning (S&OP) process in an assemble-to-order (ATO) production environment focuses oncontrol of:

A) finished goods inventory.
B) key intermediate part inventory.
C) end product backlog.
D) raw material inventory.

Solutions: