CPIM Master Planning of Resources 1 — Questions and Answers
Question 1: What is the primary purpose of Sales and Operations Planning (S&OP)?
- To align supply plans with demand plans across the organization (Correct answer)
- To schedule individual work centers on the shop floor
- To determine the reorder point for each SKU
- To calculate economic order quantities
Correct answer: To align supply plans with demand plans across the organization
S&OP integrates sales forecasts with production, inventory, and financial plans to create one unified operating plan.
Question 2: Which planning horizon is most commonly associated with the Master Production Schedule (MPS)?
- Days to weeks
- Weeks to months (Correct answer)
- Months to years
- Years to decades
Correct answer: Weeks to months
The MPS typically spans weeks to months, covering the planning fence within which firm orders are scheduled.
Question 3: What does 'demand time fence' mean in master scheduling?
- The point beyond which no customer orders are accepted
- The period within which changes to the MPS are restricted or require management approval (Correct answer)
- The lead time for raw material procurement
- The date when a product becomes obsolete
Correct answer: The period within which changes to the MPS are restricted or require management approval
The demand time fence is the boundary inside which the master scheduler should not change the MPS without senior approval to avoid disrupting firm plans.
Question 4: Rough-cut capacity planning (RCCP) is performed to verify which plan?
- Material requirements plan
- Master production schedule (Correct answer)
- Shop floor schedule
- Supplier delivery schedule
Correct answer: Master production schedule
RCCP checks the feasibility of the MPS against key resources without the detail of full capacity requirements planning.
Question 5: In demand management, 'available-to-promise' (ATP) is used to:
- Calculate safety stock levels
- Commit to customer delivery dates based on uncommitted inventory and production (Correct answer)
- Determine the optimal production batch size
- Measure forecast accuracy
Correct answer: Commit to customer delivery dates based on uncommitted inventory and production
ATP is the uncommitted portion of inventory and planned production that can be promised to new customer orders.
Question 6: Which technique disaggregates the production plan into a schedule for specific products?
- Capacity requirements planning
- Resource requirements planning
- Master production scheduling (Correct answer)
- Distribution requirements planning
Correct answer: Master production scheduling
Master production scheduling disaggregates the aggregate production plan into specific product schedules by time period.
CPIM Master Planning of Resources 1
What is the primary purpose of Sales and Operations Planning (S&OP)?