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

1. 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 substitute
B) Difficult to relocate
C) Scarcity
D) Difficult to copy

2. An advantage of adopting a capacity-leading strategy is that:

A) all demand is satisfied, and profit is maximized.
B) overcapacity problems are minimized.
C) there is sufficient capacity to meet demand.
D) there is sufficient demand to consume capacity.

3. Which of the following actions will result in lower inventory levels?

A) Level load the master production schedule (MPS).
B) Decentralize inventory locations.
C) Increase customer service level.
D) Reduce replenishment lead times.

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

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

5. An example of a cradle-to-cradle sustainability model would be:

A) a company uses wood that has been gathered from multiple sources to construct items, such as beds andtoys for babies and young children.
B) a coffee shop collects paper waste in its restaurants, has a selected supplier collect the paper waste to be recycled, and then purchases paper products from that supplier.
C) A a laundry service collects dirty baby clothes from families; cleans the clothes inlarge, efficient batches;and thensorts and delivers the clothes back to each family.
D) a bank offers the lowest interest rates on loans to firms that are committed to using recycled materials andimplementing zero-waste initiatives in their processes.

Solutions: