Supply Planning and Management 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 Supply Planning and Management flashcards as text
Which metric best measures supply planning execution effectiveness in terms of meeting the production schedule?
Answer: Master schedule adherence (MSA)
Master schedule adherence measures the percentage of planned MPS quantities actually completed on time, directly reflecting planning execution quality.
In supply planning, 'demand time fence' (DTF) refers to the period during which:
Answer: Only customer orders are used to drive the MPS, with forecast ignored
Within the demand time fence, actual customer orders replace forecast in the MPS calculation because demand is considered firm.
A company is evaluating whether to produce a component in-house or outsource it. Which factor most strongly favors in-house production?
Answer: The component uses the same equipment as other high-volume products
When a component leverages existing equipment and skills used for core products, in-house production maximizes capacity utilization and reduces unit cost.
Which of the following correctly describes the relationship between 'net requirements' and 'gross requirements' in MRP?
Answer: Net requirements = Gross requirements - On-hand inventory - Scheduled receipts
Net requirements are calculated by subtracting available inventory (on-hand plus scheduled receipts) from gross requirements to determine what must be ordered.
A supply planner is reviewing a part with an 8-week cumulative lead time and high demand variability. Which action would most effectively reduce supply risk for this item?
Answer: Qualify a second supplier with a shorter lead time
Adding a qualified alternative supplier with shorter lead time reduces dependence on a single source and decreases lead time, both reducing supply risk.
Which planning approach is most appropriate for a product with very short life cycles and highly unpredictable demand?
Answer: Make-to-order to avoid obsolescence risk
Make-to-order eliminates finished goods inventory risk for short-lifecycle products with unpredictable demand by building only against confirmed customer orders.
In S&OP (Sales and Operations Planning), what is the primary output of the process?
Answer: A balanced production plan aligned with business strategy, demand, and supply
S&OP produces a consensus plan that balances demand and supply at an aggregate level and aligns operations with the overall business strategy.