CPIM Master Planning and Capacity Management 1 — Questions and Answers
Question 1: What is the primary purpose of a Master Production Schedule (MPS) in CPIM?
- To authorize purchasing of raw materials
- To translate the production plan into specific product build quantities over time (Correct answer)
- To calculate safety stock levels
- To define supplier lead times
Correct answer: To translate the production plan into specific product build quantities over time
The MPS translates the aggregate production plan into specific quantities for individual products scheduled across time horizons.
Question 2: Which planning horizon is most commonly associated with the Master Production Schedule?
- 1–3 days
- 1–3 weeks
- Weeks to months (typically 3–18 months) (Correct answer)
- 3–5 years
Correct answer: Weeks to months (typically 3–18 months)
The MPS typically covers a medium-term horizon of weeks to months, often spanning 3 to 18 months depending on the industry.
Question 3: In CPIM terminology, what does 'time fence' refer to in master scheduling?
- A deadline for supplier purchase orders
- A boundary that restricts or controls changes to the MPS within a defined period (Correct answer)
- The lead time added to safety stock calculations
- A buffer zone in the distribution network
Correct answer: A boundary that restricts or controls changes to the MPS within a defined period
A time fence is a policy boundary within the planning horizon that controls the degree to which changes to the MPS are allowed.
Question 4: What is Rough-Cut Capacity Planning (RCCP) used for?
- Calculating exact machine-level capacity needs
- Validating that the MPS is feasible before detailed scheduling (Correct answer)
- Determining safety stock for critical components
- Setting reorder points for purchased parts
Correct answer: Validating that the MPS is feasible before detailed scheduling
RCCP provides a high-level check of key resources to confirm the MPS is achievable before committing to detailed plans.
Question 5: Which of the following best describes 'available-to-promise' (ATP) in master scheduling?
- Inventory on hand minus safety stock
- The uncommitted portion of planned or on-hand inventory that can be promised to customers (Correct answer)
- Total planned production minus work in process
- The difference between gross and net requirements
Correct answer: The uncommitted portion of planned or on-hand inventory that can be promised to customers
ATP represents the inventory or production not yet committed to customer orders, enabling accurate delivery promises.
Question 6: What is the 'planning horizon' in an MPS context?
- The time required to procure the longest lead-time item
- The furthest point in the future for which the schedule is developed (Correct answer)
- The number of production shifts scheduled per week
- The minimum lot size for a finished good
Correct answer: The furthest point in the future for which the schedule is developed
The planning horizon is the total time span covered by the MPS, extending as far into the future as the plan requires.
CPIM Master Planning and Capacity Management 1
What is the primary purpose of a Master Production Schedule (MPS) in CPIM?