CSCP Supply Chain Planning and Execution 1 — Questions and Answers
Question 1: What is the primary purpose of Sales and Operations Planning (S&OP)?
- To align supply and demand plans across business functions at an aggregate level (Correct answer)
- To schedule individual production work orders
- To manage day-to-day warehouse operations
- To negotiate contracts with suppliers
Correct answer: To align supply and demand plans across business functions at an aggregate level
S&OP is a cross-functional process that reconciles demand plans with supply capabilities to create a unified business plan.
Question 2: Which forecasting method uses historical data patterns such as trend and seasonality to predict future demand?
- Time series analysis (Correct answer)
- Delphi method
- Market research surveys
- Regression analysis with external variables
Correct answer: Time series analysis
Time series analysis extracts patterns from historical demand data — including trends and seasonal cycles — to project future demand.
Question 3: In a Master Production Schedule (MPS), 'time fences' are used to:
- Define periods where schedule changes are restricted or require management approval (Correct answer)
- Set physical boundaries in the production facility
- Establish lead time windows for supplier orders
- Define the planning horizon for capacity requirements
Correct answer: Define periods where schedule changes are restricted or require management approval
Time fences protect the near-term MPS from disruptive changes by requiring formal approval for modifications within defined periods.
Question 4: What does 'available-to-promise' (ATP) indicate in order management?
- The uncommitted inventory or planned production that can be promised to new customer orders (Correct answer)
- The total finished goods inventory on hand
- The maximum production capacity in a period
- The safety stock level maintained for a product
Correct answer: The uncommitted inventory or planned production that can be promised to new customer orders
ATP calculates the quantity available for commitment to new orders by subtracting already promised inventory from on-hand stock and scheduled receipts.
Question 5: Material Requirements Planning (MRP) is primarily driven by:
- The Master Production Schedule and the Bill of Materials (Correct answer)
- Historical sales data and reorder points
- Customer demand signals and safety stock levels
- Supplier lead times and economic order quantities
Correct answer: The Master Production Schedule and the Bill of Materials
MRP uses the MPS as input demand and explodes it through the BOM to calculate time-phased component and material requirements.
Question 6: Which of the following best describes 'capacity requirements planning' (CRP)?
- Translating planned production orders into workload on production resources to identify capacity gaps (Correct answer)
- Determining the number of new factories to build
- Calculating the safety stock needed to meet service levels
- Planning the workforce needed for peak seasonal periods
Correct answer: Translating planned production orders into workload on production resources to identify capacity gaps
CRP converts planned and released production orders into hours required at each work center to verify that capacity is sufficient.
CSCP Supply Chain Planning and Execution 1
What is the primary purpose of Sales and Operations Planning (S&OP)?