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

1. Which of the following represents landed costs?

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

2. Return on investment (ROI) is decreased by which of the following activities?

A) Increasing prices
B) Increasing cost of sales
C) Increasing sales volume
D) Reducing inventory levels

3. Reducing distribution network inventory days of supply will have which of the following impacts?

A) Decrease turnovers and increase cash-to-cash cycle time.
B) Increase turnovers and increase cash-to-cash cycle time.
C) Increase turnovers and reduce cash-to-cash cycle time.
D) Decrease turnovers and reduce cash-to-cash cycle time.

4. The primary consideration in maintenance, repair, and operating (MRO) supply systems typically is:

A) order quantity.
B) carrying costs.
C) shelf life.
D) stockout costs.

5. Risk pooling would work best for items with:

A) low demand uncertainty and long lead times.
B) low demand uncertainty and short lead times.
C) high demand uncertainty and short lead times.
D) high demand uncertainty and long lead times.

Solutions: