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 type of demand should be EXCLUDED when building the statistical baseline forecast in S&OP?
Answer: One-time events such as large tenders or disaster-relief orders
One-time or non-repeating events distort the statistical model; they should be removed from history and added back as separate manual adjustments.
In S&OP, a 'constrained plan' differs from an 'unconstrained plan' in that it:
Answer: Reflects supply and capacity limitations when setting production targets
A constrained plan adjusts the unconstrained demand signal to reflect real-world limitations in manufacturing capacity, materials, or labor.
When a company implements Integrated Business Planning (IBP), the key enhancement over traditional S&OP is:
Answer: Explicit linkage of operational volume plans to financial P&L and strategic objectives
IBP extends S&OP by formally connecting the volume and mix plan to financial statements and long-term strategic goals, creating true business-wide alignment.
A company uses a 'mixed strategy' in its S&OP production plan. This means it:
Answer: Combines elements of both chase and level strategies to balance costs and service
A mixed strategy blends the workforce stability of level production with some demand-chasing flexibility to achieve a balance between cost efficiency and customer service.
Which supply chain condition makes a 'make-to-stock' (MTS) policy MOST appropriate to discuss in S&OP supply review?
Answer: Short customer tolerance times relative to manufacturing lead times
MTS is used when customers expect immediate availability and won't wait for production, so inventory must be built ahead of demand.
In S&OP, inventory targets are BEST set based on:
Answer: Desired service level, demand variability, and replenishment lead time
Safety stock and finished-goods targets should be derived from the desired service level, forecast error (demand variability), and replenishment lead time to balance service and cost.
Which S&OP role is PRIMARILY responsible for translating the approved volume plan into a detailed master production schedule (MPS)?
Answer: Master scheduler or production planner
The master scheduler disaggregates the S&OP family-level plan into specific products, dates, and quantities to create the MPS.