APICS Sales & Operations Planning 5

Question 1

Which of the following best describes a 'chase demand' production strategy in S&OP?

Accepted Answer

Adjusting workforce and production rates to match demand fluctuations each period

Answer

A chase strategy varies production output (through hiring, layoffs, or overtime) to closely match actual demand, minimizing inventory but increasing workforce variability.

Question 2

In a multi-site manufacturing company, S&OP helps resolve which of the following challenges?

Accepted Answer

Allocating demand across plants to optimize cost and service

Answer

S&OP provides the aggregate-level visibility needed to decide which plants or regions should fulfill demand based on capacity, cost, and service constraints.

Question 3

What is the risk of running S&OP without involving the finance function?

Accepted Answer

The operating plan may conflict with financial targets and budget commitments

Answer

Without finance, the S&OP plan may be operationally feasible but financially inconsistent with the budget, creating a disconnect between operations and the P&L.

Question 4

Which tool is most commonly used to support the statistical forecasting step in an S&OP process?

Accepted Answer

Time-series forecasting models such as exponential smoothing or ARIMA

Answer

Exponential smoothing and ARIMA models use historical demand data to generate statistical baseline forecasts that serve as the starting point in the S&OP demand review.

Question 5

In the APICS framework, the S&OP plan feeds directly into which master planning process?

Accepted Answer

Master Production Scheduling (MPS)

Answer

The S&OP aggregate production plan is disaggregated into the Master Production Schedule, which drives detailed scheduling, MRP, and procurement.

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

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

APICS Sales & Operations Planning 5