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

1. A balanced scorecard is a performance measurement approach that involves:

A) obtaining external industry performance measures against the company's key performance indicators (KPIs).
B) linking financial and non-financial performance measures to organizational goals.
C) balancing supply and demand.
D) assigning profit responsibility to key managers.

2. Which of the following statements is true about the mean time between failures (MTBF) measure?

A) Itis a useful measure of reliability.
B) An increase in MTBF is proportional to an increase in quality.
C) Itis used for non-repairable products.
D) Itis the same as operating life or service life.

3. Which of the following environments would benefit most from full pegging?

A) Make-to-order (MTO)
B) Assemble-to-order (ATO)
C) Make-to-stock (MTS)
D) Distribute-to-order

4. A technique to manage load variability would be to:

A) plan additional safety capacity as a part of total available capacity to meet unplanned demand.
B) use capacity bills to provide a rough-cut method of planning total-time-per-unit value.
C) design the shop floor with machines that sit idle until additional demand requires their use.
D) apply capacity planning using overall factors (CPOF) to identify priority items at the work center.

5. The most relevant measure of customer service performance is:

A) positive customer feedback as a percentage of customer feedback.
B) customer complaints received as a percentage of orders shipped.
C) service promised to the customer against service measured by the supplier.
D) service perceived by the customer against service expected by the customer.

Solutions: