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Sales and Operations Planning Flashcards

7 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Sales and Operations Planning flashcards as text

  1. Which metric is MOST commonly used to measure S&OP forecast accuracy at the family level?

    Answer: Mean absolute percentage error (MAPE)

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

  2. In S&OP, a 'chase strategy' for production planning means the company:

    Answer: Adjusts workforce or capacity each period to match demand

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

  3. The primary purpose of the Pre-S&OP meeting is to:

    Answer: Resolve cross-functional gaps and prepare recommendations for executive review

    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.

  4. When demand exceeds available capacity in an S&OP plan, which action is NOT typically considered a supply-side response?

    Answer: Reducing the sales forecast

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

  5. A 'level production' strategy in S&OP results in:

    Answer: Inventory building during low-demand periods and drawdown during peak periods

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

  6. Which of the following best describes the role of the demand review step in the S&OP process?

    Answer: Develop and validate an unconstrained demand plan before supply constraints are applied

    The demand review produces an unconstrained demand plan—reflecting market opportunity—which is then tested against supply capability in subsequent S&OP steps.

  7. In the context of S&OP, 'product families' are typically defined by groupings that:

    Answer: Share similar manufacturing processes or market channels

    S&OP product families are aggregated by common production resources or go-to-market channels so that planning is manageable and decisions are relevant across the supply chain.