CPIM Sales and Operations Planning 2

Question 1

Which metric is MOST commonly used to measure S&OP forecast accuracy at the family level?

Accepted Answer

Mean absolute percentage error (MAPE)

Answer

Standard deviation of demand

Answer

Fill rate percentage

Answer

Inventory turnover ratio

Question 2

In S&OP, a 'chase strategy' for production planning means the company:

Accepted Answer

Adjusts workforce or capacity each period to match demand

Answer

Maintains a constant production rate and uses inventory as a buffer

Answer

Outsources production whenever demand spikes

Answer

Chases the lowest-cost supplier for each planning period

Question 3

The primary purpose of the Pre-S&OP meeting is to:

Accepted Answer

Resolve cross-functional gaps and prepare recommendations for executive review

Answer

Approve the final production plan for the upcoming period

Answer

Update customer orders in the ERP system

Answer

Conduct detailed scheduling for shop floor operations

Question 4

When demand exceeds available capacity in an S&OP plan, which action is NOT typically considered a supply-side response?

Accepted Answer

Reducing the sales forecast

Answer

Authorizing overtime production

Answer

Adding a third production shift

Answer

Engaging a subcontractor

Question 5

A 'level production' strategy in S&OP results in:

Accepted Answer

Inventory building during low-demand periods and drawdown during peak periods

Answer

Frequent changes to workforce size to match monthly demand

Answer

Zero finished-goods inventory at all times

Answer

Higher per-unit production costs during off-peak months

Question 6

Which of the following best describes the role of the demand review step in the S&OP process?

Accepted Answer

Develop and validate an unconstrained demand plan before supply constraints are applied

Answer

Confirm available inventory positions in the warehouse

Answer

Set final prices for the upcoming fiscal quarter

Answer

Review open purchase orders with key suppliers

Question 7

In the context of S&OP, 'product families' are typically defined by groupings that:

Accepted Answer

Share similar manufacturing processes or market channels

Answer

Have the same unit cost and selling price

Answer

Are produced by the same individual machine

Answer

Are ordered exclusively through the same distribution center