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

1. A planner has chosen to increase the order point for a raw material. Which of the following costs is most likely to increase?

A) Landed
B) Carrying
C) Product
D) Ordering

2. An organization has seen inventory increase every month for the past year and financial performance has net met expectations. Which of the following processes would mostappropriately address correctingthe problem?

A) Sales and operations planning (S&OP)
B) Detailed material planning
C) Master scheduling
D) Business planning

3. Which of the following measurements indicates there may be bias in the forecast model?

A) Mean absolute deviation (MAD)
B) Standard deviation
C) Variance
D) Tracking signal

4. In a make-to-order (MTO) environment, inputs to sales and operations planning (S&0P) should include the:

A) available-to-promise (ATP) data.
B) work-in-process (WIP) inventory.
C) finished goods inventory.
D) projected backlog of customer orders.

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) 6,000
C) 24,000
D) 10,000

Solutions: