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
Which financial output is MOST directly produced by integrating S&OP with financial planning?
Answer: Rolling financial forecast tied to volume and mix assumptions
Integrated business planning (IBP) links S&OP volume decisions to financial projections, producing a rolling P&L forecast that reflects changes in volume and product mix.
A company notices its S&OP plan consistently shows a 15% positive bias (forecast always higher than actuals). The BEST first corrective action is to:
Answer: Identify and remove the root cause of the bias in the forecasting process
Identifying and eliminating the root cause of systematic bias produces an accurate forecast; mechanical adjustments mask the underlying problem.
In S&OP, the term 'rough-cut capacity planning' (RCCP) is used to:
Answer: Verify that the production plan is feasible against key resources without detailed scheduling
RCCP checks whether the aggregate production plan can be supported by critical resources (e.g., key equipment, labor) before detailed scheduling is performed.
Which scenario most clearly indicates an S&OP process is NOT effectively integrated across functions?
Answer: Sales commits to promotions without informing supply planning, causing stockouts
Uncoordinated promotional commitments that bypass supply planning are a classic sign of siloed functions and poor S&OP integration.
The S&OP planning horizon is typically set to cover at least:
Answer: The cumulative lead time required to acquire materials and adjust capacity
The S&OP horizon must span the cumulative lead time so that decisions can actually influence supply before demand arrives.
In S&OP scenario planning, a 'what-if' analysis is PRIMARILY used to:
Answer: Evaluate the impact of alternative demand or supply assumptions before committing to a plan
What-if scenarios let planners stress-test assumptions (e.g., demand upside, supplier disruption) and quantify trade-offs before the executive team makes a final decision.
Which of the following is the BEST indicator that an S&OP process has reached a mature, integrated state?
Answer: Executive decisions align supply, demand, and financial plans into one approved number
A mature S&OP process produces a single, executive-approved number that reconciles demand, supply, and financial plans into one coherent operating plan.