CPIM Supply Planning and Management 5

Question 1

Which technique is used to convert a family-level production plan into individual end-item schedules in the MPS?

Accepted Answer

Planning bill of materials (planning BOM)

Answer

A planning BOM (or super BOM) distributes aggregate family demand across individual end items using historical option percentages.

Question 2

A distribution network has warehouses in Chicago, Dallas, and Seattle. Which supply planning tool would best coordinate replenishment from the central plant to these locations?

Accepted Answer

Distribution requirements planning (DRP)

Answer

DRP is specifically designed to manage the replenishment of finished goods across a distribution network from central supply points.

Question 3

When calculating the economic order quantity (EOQ), which assumption is most critical and also least realistic in practice?

Accepted Answer

Demand rate is known and constant

Answer

EOQ assumes constant, deterministic demand, but real demand is variable and uncertain, making this the most limiting assumption in practice.

Question 4

A planner is using a 'min-max' inventory system. The minimum is 100 units and maximum is 400 units. Current on-hand is 80 units. What should the planner order?

Accepted Answer

320 units (max minus on-hand)

Answer

In a min-max system, when inventory falls below the minimum, an order is placed to bring inventory up to the maximum (400 − 80 = 320 units).

Question 5

Which supply planning technique specifically addresses the problem of translating end-item demand into requirements for purchased and manufactured components?

Accepted Answer

Material requirements planning (MRP)

Answer

MRP uses the bill of materials and MPS to explode end-item demand into time-phased component requirements for purchasing and manufacturing.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Supply Planning and Management 5