CPIM Master Planning of Resources 2 — Questions and Answers
Question 1: What is a 'planning bill of materials' used for in master scheduling?
- To list all components needed for a single finished product
- To represent a family of products for aggregate planning purposes (Correct answer)
- To document engineering changes to existing designs
- To calculate the cost of a finished product
Correct answer: To represent a family of products for aggregate planning purposes
A planning BOM is an artificial grouping of items used to facilitate master scheduling for product families with common components.
Question 2: Which forecasting method calculates the average of the most recent 'n' periods?
- Exponential smoothing
- Simple moving average (Correct answer)
- Regression analysis
- Delphi method
Correct answer: Simple moving average
Simple moving average averages a set number of the most recent data periods, dropping the oldest as a new period is added.
Question 3: Mean Absolute Deviation (MAD) is used in forecasting to measure:
- The trend direction of demand
- The average absolute difference between forecasted and actual demand (Correct answer)
- The seasonal index for a product
- The correlation between two demand patterns
Correct answer: The average absolute difference between forecasted and actual demand
MAD measures forecast accuracy by averaging the absolute values of individual forecast errors, regardless of direction.
Question 4: What does a 'tracking signal' in forecasting detect?
- Seasonal patterns in demand
- Whether forecasts are consistently biased in one direction (Correct answer)
- The rate of demand growth
- The standard deviation of demand
Correct answer: Whether forecasts are consistently biased in one direction
A tracking signal monitors the cumulative forecast error to detect when a model is consistently over- or under-forecasting.
Question 5: In master planning, 'time phasing' means:
- Grouping all demand into a single bucket
- Scheduling supply and demand across specific future time periods (Correct answer)
- Reducing lead times through process improvement
- Calculating cumulative lead times
Correct answer: Scheduling supply and demand across specific future time periods
Time phasing assigns quantities of supply and demand to specific future time periods, enabling planners to see imbalances over time.
Question 6: Which of the following best describes 'collaborative planning, forecasting, and replenishment' (CPFR)?
- An internal S&OP process between sales and manufacturing
- A process where trading partners jointly develop demand forecasts and replenishment plans (Correct answer)
- A method for optimizing warehouse storage locations
- A technique for reducing manufacturing cycle times
Correct answer: A process where trading partners jointly develop demand forecasts and replenishment plans
CPFR is a supply chain collaboration process in which retailers and suppliers share data to jointly develop forecasts and replenishment orders.
CPIM Master Planning of Resources 2
What is a 'planning bill of materials' used for in master scheduling?