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Supply Planning Flashcards

7 cards from real APICS practice questions. Tap to flip, then mark Knew It or Still Learning โ€” missed cards come back until you master them.

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  1. Which supply planning concept involves grouping individual items with similar supply characteristics to simplify planning and reduce system complexity?

    Answer: Product family aggregation

    Product family aggregation combines items with similar production processes, lead times, or supply sources so they can be planned together at a higher level.

  2. A planner is evaluating two supply options: Option A has lower unit cost but 12-week lead time; Option B has higher unit cost but 2-week lead time. The primary supply planning trade-off being evaluated is:

    Answer: Total cost of ownership versus supply chain agility

    This decision balances total cost (unit price plus inventory carrying cost from longer lead time) against supply chain responsiveness and flexibility.

  3. In a make-to-stock environment, what is the primary purpose of the production plan at the aggregate level?

    Answer: To set overall output rates that balance workforce and inventory levels against anticipated demand

    Aggregate production planning establishes resource output rates in families or groups to balance supply capacity against aggregate demand while managing inventory and workforce.

  4. Which MRP input file contains information about the quantity of each component required to build one unit of a parent item?

    Answer: Bill of materials (BOM)

    The bill of materials defines the parent-component relationships and the quantity per (QPA) of each component needed to produce one unit of the parent.

  5. A supply planner is concerned about single-source dependency for a critical component. Which risk mitigation strategy would be most appropriate?

    Answer: Qualifying an alternate supplier and dual-sourcing the component

    Dual-sourcing by qualifying an alternate supplier directly eliminates the single-source dependency and reduces supply disruption risk.

  6. In supply planning, 'cumulative lead time' refers to:

    Answer: The longest total elapsed time from raw material procurement through finished goods completion

    Cumulative lead time is the critical path through the entire supply chain from the earliest raw material purchase to the finished product, defining the minimum planning horizon.

  7. Which of the following best describes the role of safety lead time in an MRP system?

    Answer: It artificially inflates lead time to trigger planned orders earlier, providing a time buffer against late deliveries

    Safety lead time adds extra days to a component's lead time so MRP generates purchase orders earlier, building in a buffer against supplier lateness.