CPIM Sales and Operations Planning 4

Question 1

Which type of demand should be EXCLUDED when building the statistical baseline forecast in S&OP?

Accepted Answer

One-time events such as large tenders or disaster-relief orders

Answer

One-time or non-repeating events distort the statistical model; they should be removed from history and added back as separate manual adjustments.

Question 2

In S&OP, a 'constrained plan' differs from an 'unconstrained plan' in that it:

Accepted Answer

Reflects supply and capacity limitations when setting production targets

Answer

A constrained plan adjusts the unconstrained demand signal to reflect real-world limitations in manufacturing capacity, materials, or labor.

Question 3

When a company implements Integrated Business Planning (IBP), the key enhancement over traditional S&OP is:

Accepted Answer

Explicit linkage of operational volume plans to financial P&L and strategic objectives

Answer

IBP extends S&OP by formally connecting the volume and mix plan to financial statements and long-term strategic goals, creating true business-wide alignment.

Question 4

A company uses a 'mixed strategy' in its S&OP production plan. This means it:

Accepted Answer

Combines elements of both chase and level strategies to balance costs and service

Answer

A mixed strategy blends the workforce stability of level production with some demand-chasing flexibility to achieve a balance between cost efficiency and customer service.

Question 5

Which supply chain condition makes a 'make-to-stock' (MTS) policy MOST appropriate to discuss in S&OP supply review?

Accepted Answer

Short customer tolerance times relative to manufacturing lead times

Answer

MTS is used when customers expect immediate availability and won't wait for production, so inventory must be built ahead of demand.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Sales and Operations Planning 4