APICS Certified in Production and Inventory Management

QUESTION NO: 1
Production planning problem typically has the following characteristics EXCEPT:

A. A time horizon of 12 months is used, with periodic updating perhaps every month or quarter B. Production demand consists of one or a few product families or common units C. Demand is rarely fluctuating D. Plant and equipment are fixed within the time horizon

Correct Answer: C

QUESTION NO: 2
Basic concepts in TQM:

A. A committed and involved management B. Involvement of the total workforce C. Focus on the customer D. All of these

Correct Answer: D

QUESTION NO: 3
Analyzing capital investments by estimating future cash flows and translating them into equivalent amounts in today's terms is called:

A. payback analysis B. Average return on investment analysis C. discounted cash flow analysis D. internal rate of return analysis

Correct Answer: C

QUESTION NO: 4
Intermittent process layout is sometimes called product layout because the system is set up for a limited range of similar products.

A. True B. False

Correct Answer: B

QUESTION NO: 5
Which of the following is most likely to be the order winner in the early stages of a product's life cycle?

A. price B. support C. Quality D. Design

Correct Answer: D

QUESTION NO: 6
When a quantity of an item equal to the order point quantity is set aside and not touched until all the main stock is used up, this strategy is called:

A. Wait-for-next strategy B. Two-fold system C. Dual system D. Two-bin system

Correct Answer: D

QUESTION NO: 7
ERP systems:

A. Having large scope allows the tracking of orders and other important planning and control information throughout the entire company from procurement to ultimate customer delivery B. None of these C. Capable of allowing managers to share data between firms D. Both of these

Correct Answer: D

QUESTION NO: 8
A company wants to minimize the cost of manufacture and also be flexible enough to adapt to changing needs. Changes to production schedules can result in the following EXCEPT:

A. Cost increases due to rerouting, rescheduling, extra setups, expediting, and buildup of work-in-process inventory B. Process create more scraps than needed than needed C. Loss of credibility for the MPS and the planning process D. Decreased customer service. A change in quantity of delivery can disrupt the schedule of other orders

Correct Answer: B

QUESTION NO: 9
A 100% inspection means:

A. Testing every unit in the lot B. Appropriate when the cost of inspection is less than the cost of any loss resulting from failure of the parts C. None of these D. Both of these

Correct Answer: D

QUESTION NO: 10
A system that forecasts when the various demands will be made by the system on central supply is known as:

A. Conjecture supply planning B. Distribution requirements planning C. Predictive central system D. Anticipated centralized system

Correct Answer: B

QUESTION NO: 11
Projected available balance is calculated in which one of the following ways?

A. Both of these depending on whether the period is before or after the period is before or after the demand time fence B. PAB=prior period PAB or on-hand balance + MPS - customer orders C. None of these D. PAB=prior period PAB + MPS - greater of customer orders or forecast

Correct Answer: A

QUESTION NO: 12
The orders are automatically scheduled and controlled by the computer are the orders called:

A. Planned orders B. Computer generated order C. All of the Above D. Firms planned order

Correct Answer: A

APICS Certified in Production and Inventory Management - CPIM Exam Questions