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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 KPI would BEST measure the effectiveness of the S&OP process itself (rather than a supply chain outcome)?

    Answer: Percentage of S&OP decisions implemented as approved

    Tracking whether approved S&OP decisions are actually executed measures process discipline and organizational adherence to the plan.

  2. A company sells products with highly seasonal demand. Which S&OP inventory strategy is MOST appropriate?

    Answer: Build seasonal inventory in advance during low-demand periods using a level production strategy

    Pre-building inventory during the off-season with level production smooths workforce and capacity costs while ensuring product availability at peak demand.

  3. In the S&OP process, 'management business review' or 'executive S&OP' is convened to:

    Answer: Make final decisions on unresolved supply-demand gaps and approve the operating plan

    The executive S&OP session is where senior leadership resolves escalated trade-offs, approves the plan, and allocates resources across the business.

  4. Which action BEST supports continuous improvement of the S&OP process over time?

    Answer: Conducting regular performance reviews comparing plan versus actual results and acting on gaps

    Systematic plan-versus-actual review exposes recurring gaps, drives root-cause analysis, and provides the feedback loop needed to improve forecast accuracy and planning quality.

  5. When a new product launch is included in the S&OP plan, the GREATEST forecasting challenge is typically:

    Answer: Lack of historical sales data to build a statistical baseline

    New products have no demand history, so planners must rely on market research, analogous product data, and management judgment rather than statistical models.

  6. In S&OP, 'demand shaping' refers to:

    Answer: Using pricing, promotions, or lead-time incentives to influence customer demand toward available supply

    Demand shaping proactively influences buying behavior—through price incentives, promotions, or alternative products—to better match demand to available supply capacity.

  7. Which of the following BEST describes the relationship between S&OP and master production scheduling (MPS)?

    Answer: S&OP provides the aggregate family-level plan that MPS disaggregates into specific items and time periods

    S&OP operates at the aggregate product-family level over a long horizon; MPS translates that approved plan into specific end-item schedules for detailed execution.