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

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

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

2. Which of the following trade-offs should be evaluated when determining where to place inventory in a multi-echelon supplychain network?

A) Customer price and order quantity
B) Transportation cost and delivery time
C) Production cost and lot sizequantity
D) Purchase cost and shrinkage rates

3. 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) 0.25
B) 5
C) 0.20
D) 4

4. Which of the following conditions is required for an effective single-sourcing relationship?

A) The supplier must offer the lowest price per unit.
B) The organizations must be mutually dependent.
C) Demand for the customer's products must be stable.
D) The organizations must be located close to each other.

5. Product X sells for $20 each, and it has a variable cost of $5 per unit. The company sells 10,000 units per year and has afixed cost of $120,000. What is the break-even point in units for Product X?

A) 8,000
B) 10,000
C) 6,000
D) 24,000

Solutions: