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

1. Operations strategy:

A) is a top-down activity where operations improvements cumulatively build strategy.
B) involves exploiting operations capabilities in the global market.
C) is a bottom-up reflection of what the whole group or business wants to do.
D) involves translating market requirements into operations decisions.

2. Which of the following activities would be effective to mitigate the bullwhip effect?

A) Increase inventory.
B) Use a push system.
C) Reduce lead times.
D) Implement track and trace technology.

3. An analysis was done on a group of parts that showed a missed delivery resulting in lost sales on other product lines manytimes greater than the value of the initial lost sale. As a result, the company launched an initiative to increase the fill rate onthese parts to 100%. Currently, they have raised the fill rate to 99%. As they continue the initiative, what effects are mostlikely expected?

A) Operating costs will increase faster than service level.
B) Neither operating costs nor service level will increase.
C) Operating costs will increase slower than service level,
D) Operating costs and service level will both increase at the same rate.

4. Which of the following tools shows process changes and random variation over time?

A) Histogram
B) Check sheet
C) Control chart
D) Pareto analysis

5. A company has deployed its own proprietary software for web hosting and order management. This software has beenrecognized as best-in-class. The proprietary software represents what defensive operational strategy used to sustain thecompany's business over time?

A) Difficult to copy
B) Difficult to relocate
C) Difficult to substitute
D) Scarcity

Solutions: