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

MAPE is the standard S&OP forecast accuracy metric because it expresses error as a percentage, enabling comparison across product families with different volumes.

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

A chase strategy matches production output directly to demand each period, typically by varying workforce size, overtime, or subcontracting.

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

The Pre-S&OP meeting reconciles supply and demand imbalances at the functional level so that unresolved issues and recommended scenarios are escalated to the executive S&OP session.

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

Reducing the sales forecast is a demand-side lever, not a supply-side response; supply-side options include overtime, extra shifts, and subcontracting.

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

Level production keeps output constant, so inventory accumulates when demand is low and is consumed when demand peaks.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Sales and Operations Planning 2