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

1. Increased use of third-party logistics (3PL) services is likely to have which of the following effects on a firm's balance sheet?

A) Increased intangible assets
B) Decreased retained earnings
C) Increased accounts receivable
D) Decreased fixed assets

2. Operations strategy:

A) is a top-down activity where operations improvements cumulatively build strategy.
B) is a bottom-up reflection of what the whole group or business wants to do.
C) involves exploiting operations capabilities in the global market.
D) involves translating market requirements into operations decisions.

3. A company has deployed its own proprietary software for web hosting and order management. This software has beenrecognized as best-in-class. The proprietary software represents what defensive operational strategy used to sustain thecompany's business over time?

A) Difficult to relocate
B) Difficult to copy
C) Scarcity
D) Difficult to substitute

4. A vendor-managed inventory (\VMI) program provides a benefit to the buying company in which of the following ways?

A) Reduces material cost
B) Reduces administrative expenses
C) Reduces work in process (WIP)
D) Reduces the number of quality notifications

5. Which of the following approaches is most effective in communicating operational performance?

A) Quality performance measures
B) Visual control boards at several locations
C) Monthly meetings with employees
D) Reviewing conformance to schedule

Solutions: