APICS Sales & Operations Planning 3

Question 1

What is the role of the 'product review' (or portfolio review) in a mature S&OP process?

Accepted Answer

To assess new product introductions, end-of-life items, and their impact on demand and supply plans

Answer

The product review examines pipeline launches and phase-outs so that their demand and supply implications can be incorporated into the S&OP plan.

Question 2

Which of the following is a key input to the demand review step of S&OP?

Accepted Answer

Statistical baseline forecast plus market intelligence and sales input

Answer

The demand review combines a statistical forecast with qualitative intelligence from sales, marketing, and customers to produce a consensus demand plan.

Question 3

A manufacturing company is implementing S&OP for the first time. Which organizational change is most critical for success?

Accepted Answer

Breaking down functional silos so sales, operations, and finance collaborate

Answer

S&OP requires cross-functional collaboration; without breaking down silos between sales, supply chain, and finance, the process cannot produce an aligned plan.

Question 4

In S&OP, 'rough-cut capacity planning' (RCCP) is used to:

Accepted Answer

Verify that key resources can support the production plan at an aggregate level

Answer

RCCP checks whether critical work centers, labor, and equipment have sufficient capacity to execute the production plan without detailed scheduling.

Question 5

What does a 'consensus forecast' in S&OP mean?

Accepted Answer

A single agreed-upon demand plan that reflects input from sales, marketing, and supply chain

Answer

A consensus forecast is the one number that all functions agree to use as the basis for planning, reconciling statistical data with business intelligence.

(APICS) American Production and Inventory Control Society Certified Practice Test

(APICS) American Production and Inventory Control Society Certified Practice Test

APICS Sales & Operations Planning 3