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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

  1. Which metric is most commonly used to measure S&OP forecast accuracy?

    Answer: Mean Absolute Percentage Error (MAPE)

    MAPE measures the average absolute percentage difference between forecasted and actual demand, making it the standard S&OP forecast accuracy metric.

  2. In S&OP, what is the primary purpose of the 'pre-S&OP' meeting?

    Answer: To resolve functional disagreements before the executive meeting

    The pre-S&OP meeting allows functional leaders to reconcile differences and present a unified view to executives, avoiding unproductive debate at the executive session.

  3. A company's S&OP process shows demand exceeding supply capacity for the next three months. Which response is most appropriate?

    Answer: Prioritize customers, adjust pricing, or add capacity

    When demand exceeds supply, S&OP should evaluate options like demand shaping, customer prioritization, overtime, or capacity additions to close the gap.

  4. What distinguishes Integrated Business Planning (IBP) from traditional S&OP?

    Answer: IBP integrates financial planning and strategic plans more deeply into the process

    IBP extends S&OP by fully integrating financial plans, strategic initiatives, and portfolio management into a single monthly business management process.

  5. Which of the following best describes 'demand shaping' in the context of S&OP?

    Answer: Using pricing, promotions, or product mix to influence demand toward supply availability

    Demand shaping uses commercial levers such as pricing, promotions, and channel incentives to move demand toward what supply can profitably fulfill.

  6. In an S&OP process, the 'supply review' step is primarily responsible for:

    Answer: Assessing the ability to meet the demand plan given current capacity and materials

    The supply review evaluates capacity constraints, material availability, and lead times to determine if and how the demand plan can be met.

  7. Which planning horizon is most typical for an S&OP process?

    Answer: 18 to 24 months rolling

    S&OP typically covers an 18–24 month rolling horizon to allow enough time to identify capacity gaps and take corrective action.