Apics Exam Questions

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Question Number: 1
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts

The basic elements of the supply chain include:
A) supply, manufacture, distribution.
B) design, manufacture, inventory.
C) engineer, design, manufacture.
D) supply, engineer, manufacture.

The correct answer is: A

Even though different companies produce different products, the basic elements are the same: supply, manufacture, and distribution. (Arnold, Introduction to Materials Management, Chapter 1).

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Question Number: 2
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts

In order to maximize profit, a company must have all of the following objectives except: A) Best customer service
B) Most accurate production forecast
C) Lowest inventory investment
D) Lowest distribution cost

The correct answer is: B

A company, to maximize profits, must have the lowest production cost, best customer service, lowest inventory investment, and lowest distribution costs. While an accurate production forecast will contribute to low production costs, it will not guarantee the Lowest production costs. (Arnold, Introduction to Materials Management, Chapter 1).

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Question Number: 3
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts

The inventory turns ratio measures:
A) the amount of inventory needed to support sales growth.
B) obsolete inventory as a percent of sales.
C) how effectively inventory is being used.
D) the amount of space needed to store inventory.

The correct answer is: C

The inventory turns ratio measures how effectively inventories are being used. It is calculated by dividing annual cost of goods sold by average inventory in dollars. (Arnold, Introduction to Materials Management, Chapter 1).

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Question Number: 4
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts

Process specifications can be best defined as a document which: A) shows how the product will appear.
B) shows the steps needed to produce the end item.
C) details the capacity available at a work center.
D) flow charts various processes.

The correct answer is: B

Process specifications describe the steps needed to make an end product. They are usually printed on a routing sheet or kept in the database for online access. (Arnold, Introduction to Materials Management, Chapter 1).

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Question Number: 5
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts

A company's strategic plan:
A) provides the manufacturing plan for families of end items. B) outlines the sales plan for the next year.
C) is a statement of goals and objectives for a long range period. D) outlines new products for the next year.

The correct answer is: C

While strategic plans do provide for manufacturing, sales, and new product plans, they really provide the overall direction for the company. The result is a statement of goals and objectives for 2-5 years, and sometimes 10 years. (Arnold, Introduction to Materials Management, Chapter 2).

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Question Number: 6
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts

In which of the following manufacturing environments would consumer products, such as film, food, etc. be classified? A) Assemble-to-order
B) Engineer-to-order
C) Make-to-order
D) Make-to-stock

The correct answer is: D

Consumer products are generally considered make-to-stock. There are a few standard items assembled from many components. (Arnold, Introduction to Materials Management, Chapter 3).

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Question Number: 7
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts

Many different end items are made from a small number of components. What manufacturing environment would this be? A) Make-to-stock
B) Make-to-order
C) Assemble-to-order
D) Engineer-to-order

The correct answer is: B

Make-to-order companies typically make many end items from a small number of components. The schedule is developed from actual customer orders. (Arnold, Introduction...
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