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

1. A customer requests an order of 100 units in Period 1. The master schedule for the item indicates an available-to-promise (ATP) of 85 units for Period 1. Which of the following approaches is the most appropriate course of action?

A) Promise the 100 units by removing 15 units from another customer's order with a smaller revenue value.
B) Promise the 100 units, and then check on component availability.
C) Increase the master production schedule (MPS) quantity in Period 1 by 15 units.
D) Promise the 85 units in Period 1 and the remaining 15 units in the next possible ATP period.

2. The production plan relates to a firm's financial planning because it is used to:

A) identify future cash needs.
B) project payroll costs.
C) determine variable costs.
D) calculate standard product costs.

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

4. Which of the following is the fundamental difference between finite loading and other capacity planning approaches?

A) It can use historical information to drive decision-making processes.
B) It considers adjustments to plans based on planned capacity utilization.
C) It is highly dependent on advanced computer software to function effectively.
D) It is only managed by shop floor supervisors.

5. 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) finished goods inventory.
C) work-in-process (WIP) inventory.
D) projected backlog of customer orders.

Solutions: