CPIM Supply Planning and Management 2

Question 1

Which planning horizon characteristic best distinguishes a master production schedule (MPS) from a long-range production plan?

Accepted Answer

MPS is stated in specific end items; long-range uses product families

Answer

MPS covers years; long-range covers weeks

Answer

MPS is updated annually; long-range is updated weekly

Answer

MPS focuses on capacity; long-range focuses on materials

Question 2

A company notices its planned orders are frequently being expedited due to demand spikes. Which MRP parameter adjustment would best reduce this problem?

Accepted Answer

Increase safety stock levels

Answer

Increase the planning time fence

Answer

Reduce the lot size

Answer

Shorten the planning horizon

Question 3

In supply chain management, 'postponement' refers to:

Accepted Answer

Deferring product differentiation to the latest possible point in the supply chain

Answer

Delaying payment to suppliers to improve cash flow

Answer

Postponing production until firm orders are received

Answer

Delaying new product launches to reduce risk

Question 4

What is the primary purpose of a 'rough-cut capacity plan' (RCCP)?

Accepted Answer

To verify that the MPS is achievable given key resource constraints

Answer

To allocate capacity across all work centers in detail

Answer

To determine machine maintenance schedules

Answer

To calculate the cost of overtime production

Question 5

Which of the following best describes 'available-to-promise' (ATP) functionality?

Accepted Answer

The uncommitted portion of inventory and planned production that can be promised to customers

Answer

The quantity on hand minus safety stock

Answer

Total planned production minus firm orders

Answer

The difference between forecast and actual demand

Question 6

A supplier offers a quantity discount: $10/unit for 1-499 units and $8/unit for 500+ units. Annual demand is 1,000 units. Holding cost is 20% of unit price per year. Which order quantity minimizes total annual cost?

Accepted Answer

500 units to capture the discount

Answer

The EOQ calculated at $10/unit

Answer

250 units based on average price

Answer

1,000 units to minimize ordering frequency

Question 7

Which supply planning concept involves sharing real-time inventory and sales data between a retailer and supplier to jointly manage replenishment?

Accepted Answer

Collaborative planning, forecasting, and replenishment (CPFR)

Answer

Vendor-managed inventory (VMI)

Answer

Continuous replenishment planning (CRP)

Answer

Cross-docking