APICS Supply Planning 4

Question 1

A manufacturer uses a 'chase strategy' in aggregate production planning. Which of the following best describes this approach?

Accepted Answer

Varying output rate to match demand fluctuations while keeping inventory minimal

Answer

A chase strategy adjusts production output — through hiring, layoffs, or overtime — to closely match actual demand, minimizing finished goods inventory.

Question 2

Which supply planning technique is specifically designed to handle dependent demand for components while independent demand is handled by a different method?

Accepted Answer

Material Requirements Planning (MRP)

Answer

MRP is designed for dependent demand items — components whose demand is derived from the parent item's production plan rather than being independently ordered by customers.

Question 3

In S&OP (Sales and Operations Planning), the supply review meeting's primary output is:

Accepted Answer

A preliminary supply plan that identifies capacity gaps and constraints to be resolved

Answer

The supply review assesses whether available capacity and supply resources can meet the demand plan, highlighting gaps that need resolution before the executive S&OP meeting.

Question 4

What is the key difference between 'planned orders' and 'firm planned orders' in an MRP system?

Accepted Answer

Firm planned orders are frozen by the planner and will not be automatically changed by MRP recalculations

Answer

A firm planned order is manually fixed by a planner, preventing the MRP system from automatically rescheduling or deleting it during replanning runs.

Question 5

A company is considering postponement as a supply planning strategy. Which scenario would benefit most from this approach?

Accepted Answer

A product with a common platform that is differentiated late in the process for regional markets

Answer

Postponement works best when a product has a common base that can be held as generic inventory and customized (labeled, configured, or packaged) only when actual regional demand is known.

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

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

APICS Supply Planning 4