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APICS Exam 2 Practice Questions (Original) EXAM | 2026–2027 Latest Update |
Original Questions & Answers with Detailed Rationales | Graded A+
1. Which of the following is the primary objective of Sales and
Operations Planning (S&OP)?
A) To create detailed production schedules for the shop floor
B) To balance demand and supply at the aggregate level
C) To manage individual customer orders
D) To determine safety stock levels for each SKU
Answer: B) To balance demand and supply at the aggregate
level
Rationale: S&OP is a cross-functional process that aligns
demand and supply plans at an aggregate (product family)
level, typically monthly, to support strategic business goals.
Detailed schedules are done in master scheduling and
production activity control.
2. Which forecasting method relies on the assumption that
future demand is a function of past demand patterns?
A) Qualitative (judgmental) forecasting
B) Causal forecasting
C) Time series forecasting
D) Delphi method
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Answer: C) Time series forecasting
Rationale: Time series methods (e.g., moving average,
exponential smoothing) assume that historical demand
patterns (trend, seasonality, cyclical) will continue into the
future. Qualitative methods use judgment; causal methods
use external variables.
3. A company uses a moving average of 3 months to forecast
demand. Actual demands for the last 3 months were 120, 130,
and 140 units. What is the forecast for the next month?
A) 120
B) 130
C) 135
D) 140
Answer: B) 130
Rationale: A 3-month moving average = (120 + 130 + 140) / 3 =
= 130 units. The forecast is the simple average of the
last three periods.
4. In exponential smoothing, which value of alpha (α) would
make the forecast most responsive to recent changes in
demand?
A) 0.05
B) 0.1
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C) 0.3
D) 0.8
Answer: D) 0.8
Rationale: A higher alpha (closer to 1) gives more weight to
the most recent observation, making the forecast react more
quickly to changes. A low alpha (closer to 0) produces a
smoother, less responsive forecast.
5. Which of the following is an example of a qualitative
forecasting technique?
A) Exponential smoothing
B) Regression analysis
C) Delphi method
D) Moving average
Answer: C) Delphi method
Rationale: The Delphi method uses a panel of experts who
provide forecasts anonymously, with iterative rounds and
feedback, to reach a consensus. It is qualitative. The others are
quantitative methods.
6. The primary purpose of the Master Production Schedule
(MPS) is to:
A) Determine the amount of raw materials to purchase
APICS Exam 2 Practice Questions (Original) EXAM | 2026–2027 Latest Update |
Original Questions & Answers with Detailed Rationales | Graded A+
1. Which of the following is the primary objective of Sales and
Operations Planning (S&OP)?
A) To create detailed production schedules for the shop floor
B) To balance demand and supply at the aggregate level
C) To manage individual customer orders
D) To determine safety stock levels for each SKU
Answer: B) To balance demand and supply at the aggregate
level
Rationale: S&OP is a cross-functional process that aligns
demand and supply plans at an aggregate (product family)
level, typically monthly, to support strategic business goals.
Detailed schedules are done in master scheduling and
production activity control.
2. Which forecasting method relies on the assumption that
future demand is a function of past demand patterns?
A) Qualitative (judgmental) forecasting
B) Causal forecasting
C) Time series forecasting
D) Delphi method
,https://www.stuvia.com/user/performance
Answer: C) Time series forecasting
Rationale: Time series methods (e.g., moving average,
exponential smoothing) assume that historical demand
patterns (trend, seasonality, cyclical) will continue into the
future. Qualitative methods use judgment; causal methods
use external variables.
3. A company uses a moving average of 3 months to forecast
demand. Actual demands for the last 3 months were 120, 130,
and 140 units. What is the forecast for the next month?
A) 120
B) 130
C) 135
D) 140
Answer: B) 130
Rationale: A 3-month moving average = (120 + 130 + 140) / 3 =
= 130 units. The forecast is the simple average of the
last three periods.
4. In exponential smoothing, which value of alpha (α) would
make the forecast most responsive to recent changes in
demand?
A) 0.05
B) 0.1
, https://www.stuvia.com/user/performance
C) 0.3
D) 0.8
Answer: D) 0.8
Rationale: A higher alpha (closer to 1) gives more weight to
the most recent observation, making the forecast react more
quickly to changes. A low alpha (closer to 0) produces a
smoother, less responsive forecast.
5. Which of the following is an example of a qualitative
forecasting technique?
A) Exponential smoothing
B) Regression analysis
C) Delphi method
D) Moving average
Answer: C) Delphi method
Rationale: The Delphi method uses a panel of experts who
provide forecasts anonymously, with iterative rounds and
feedback, to reach a consensus. It is qualitative. The others are
quantitative methods.
6. The primary purpose of the Master Production Schedule
(MPS) is to:
A) Determine the amount of raw materials to purchase
