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
A company notices its S&OP plan is consistently ignored at the operational level. What is the most likely root cause?
Answer: The S&OP plan is not translated into detailed execution plans like MPS and MRP
Without cascading the S&OP plan into the Master Production Schedule (MPS) and Material Requirements Planning (MRP), shop floor execution remains disconnected from the S&OP decisions.
Which of the following best characterizes an 'unconstrained' demand plan in S&OP?
Answer: A forecast of what the market demands regardless of supply or capacity limitations
An unconstrained demand plan represents true market demand without internal constraints applied, serving as the starting point before supply limitations are considered.
In S&OP, what is the purpose of tracking 'plan vs. actual' performance each month?
Answer: To identify forecast bias and process gaps so the S&OP cycle can be improved
Comparing plan to actual highlights systemic biases, process failures, and assumption errors that should feed back into improving the next S&OP cycle.
Which of the following scenarios would most likely trigger an 'exception' flag in an S&OP system?
Answer: Forecasted demand for a product exceeds available production capacity by 40%
A large gap between forecasted demand and available supply capacity is a critical exception that requires management attention and resolution in the S&OP process.
What does 'inventory optimization' in the context of S&OP primarily aim to achieve?
Answer: Setting inventory targets that balance customer service levels against carrying costs
Inventory optimization in S&OP determines the right amount of stock at each node to meet service level targets at the lowest total cost.
A seasonal business uses S&OP to plan inventory buildup before peak demand. This strategy is called:
Answer: Level production strategy
A level production strategy maintains a stable production rate and builds inventory ahead of demand peaks, which is common in seasonal businesses using S&OP.
Which of the following is a primary benefit of a well-executed S&OP process?
Answer: Improved alignment between business strategy and day-to-day operations
S&OP bridges strategic intent and operational execution by creating a single, agreed plan that all functions use to make decisions.