Sales & Operations Planning Flashcards
7 cards from real APICS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Sales & Operations Planning flashcards as text
What is the role of the 'product review' (or portfolio review) in a mature S&OP process?
Answer: To assess new product introductions, end-of-life items, and their impact on demand and supply plans
The product review examines pipeline launches and phase-outs so that their demand and supply implications can be incorporated into the S&OP plan.
Which of the following is a key input to the demand review step of S&OP?
Answer: Statistical baseline forecast plus market intelligence and sales input
The demand review combines a statistical forecast with qualitative intelligence from sales, marketing, and customers to produce a consensus demand plan.
A manufacturing company is implementing S&OP for the first time. Which organizational change is most critical for success?
Answer: Breaking down functional silos so sales, operations, and finance collaborate
S&OP requires cross-functional collaboration; without breaking down silos between sales, supply chain, and finance, the process cannot produce an aligned plan.
In S&OP, 'rough-cut capacity planning' (RCCP) is used to:
Answer: Verify that key resources can support the production plan at an aggregate level
RCCP checks whether critical work centers, labor, and equipment have sufficient capacity to execute the production plan without detailed scheduling.
What does a 'consensus forecast' in S&OP mean?
Answer: A single agreed-upon demand plan that reflects input from sales, marketing, and supply chain
A consensus forecast is the one number that all functions agree to use as the basis for planning, reconciling statistical data with business intelligence.
Which of the following best describes 'supply flexibility' as it relates to S&OP?
Answer: The ability to adjust production rates up or down in response to changes in the demand plan
Supply flexibility is the organization's capability to scale output or change product mix quickly, which is essential for responding to demand variability in S&OP.
Which financial metric is most directly aligned with the S&OP executive review?
Answer: Revenue and gross margin projections vs. plan
The executive S&OP review evaluates whether the operating plan will deliver the financial targets (revenue, margin, cost) committed to the business plan.