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

1. In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:

A) earlier identification of shifts in customer preferences.
B) reduced forecast variability.
C) fewer customer defections.
D) fewer customer order changes.

2. Which of the following trade-offs should be evaluated when determining where to place inventory in a multi-echelon supplychain network?

A) Customer price and order quantity
B) Production cost and lot size quantity
C) Purchase cost and shrinkage rates
D) Transportation cost and delivery time

3. Components of an organization's immediate industry and competitive environment include:

A) interest rates.
B) political factors.
C) substitute products.
D) sociocultural forces,

4. Providing a realistic basis for setting internal performance targets can be accomplished through:

A) best practices.
B) benchmarking.
C) beta testing.
D) breakthrough innovation.

5. A manufacturer wishes to decrease the time-to-market for a new product family. Which of thefollowing strategies should beused?

A) Decrease the number of suppliers for components of the new product.
B) Increase the safety stocks for the new product's components.
C) Decrease the purchasing lot size for the new product's components.
D) Increase collaboration between the buyer and the supplier of new components.

Solutions: