CPIM Module 2 A
Which of the following considerations is outside the sales and operations demand
management process?
Customer starting up a new, larger facility
Management override of the statistical forecast
Capacity of a new assembly line for a new product
Selection of a statistical forecasting technique – answer Capacity of a new assembly
line for a new product
What is the first step in planning the scheduling of goods and services?
Master production scheduling
Production planning
Forecasting
Sales and operations planning - answer Sales and operations planning
Which manufacturing environment is the most economical production approach, with
long runs, high capacity utilization rates, and few setups?
Batch
Continuous flow
Cellular
Intermittent - answerContinuous flow
Subassemblies and options need to be master-scheduled separately from the end item
in which of the following environments?
Engineer-to-order
Assemble-to-order
Make-to-stock
Make-to-order - answerAssemble-to-order
The creation of a high-volume product with large variety so that a customer may specify
an exact model is:
design-to-order.
make-to-order.
mass production.
mass customization. - answermass customization.
Why does sales and operations planning (S&OP) address both monetary units and
product families?
The planning horizon covers both long- and short-term planning.
Monetary units are an input, and product family plans are an output.
Accounting needs monetary unit information, and production needs product information.
, Knowing both enables a cross-check to ensure consistency. - answerMonetary units are
an input, and product family plans are an output.
In a make-to-stock environment, what indicates that the correct level of finished goods
is being planned in a time of increasing sales?
High customer service levels
Actual sales exceeding plan
Increasing inventory turnover
Increasing customer base - answerHigh customer service levels
Improving forecast accuracy contributes to which of the following actions?
Increasing productivity
Decreasing delivery lead times
Increasing inventory turnover
Decreasing sales and operations planning frequency - answerDecreasing delivery lead
times
The sales forecast is disaggregated into individual forecasts at the distribution center
level. What may this result in?
Increases in the planners' need for involvement
Inconsistency between the total forecast and the distribution center forecasts
Forecast errors at the detail level
Decreases in safety stock levels - answerForecast errors at the detail level
Why is forecasting performed within the sales and operations planning cycle?
The forecasting function is located within the sales department.
It is important to forecast based on customer buying habits.
Sales personnel are trained in forecasting methodologies.
Aggregate monetary units are unnecessary for a forecast. - answerIt is important to
forecast based on customer buying habits.
Which of the following products is most likely to be the simplest to develop a sales and
operations plan for?
Plywood
Blue jeans
Ballpoint pens
Printers - answerPlywood
Which of the following is the first level at which existing inventory is accounted for in the
planning hierarchy?
Business planning
Master planning
Sales and operations planning
Detailed scheduling and planning - answerSales and operations planning
Which of the following considerations is outside the sales and operations demand
management process?
Customer starting up a new, larger facility
Management override of the statistical forecast
Capacity of a new assembly line for a new product
Selection of a statistical forecasting technique – answer Capacity of a new assembly
line for a new product
What is the first step in planning the scheduling of goods and services?
Master production scheduling
Production planning
Forecasting
Sales and operations planning - answer Sales and operations planning
Which manufacturing environment is the most economical production approach, with
long runs, high capacity utilization rates, and few setups?
Batch
Continuous flow
Cellular
Intermittent - answerContinuous flow
Subassemblies and options need to be master-scheduled separately from the end item
in which of the following environments?
Engineer-to-order
Assemble-to-order
Make-to-stock
Make-to-order - answerAssemble-to-order
The creation of a high-volume product with large variety so that a customer may specify
an exact model is:
design-to-order.
make-to-order.
mass production.
mass customization. - answermass customization.
Why does sales and operations planning (S&OP) address both monetary units and
product families?
The planning horizon covers both long- and short-term planning.
Monetary units are an input, and product family plans are an output.
Accounting needs monetary unit information, and production needs product information.
, Knowing both enables a cross-check to ensure consistency. - answerMonetary units are
an input, and product family plans are an output.
In a make-to-stock environment, what indicates that the correct level of finished goods
is being planned in a time of increasing sales?
High customer service levels
Actual sales exceeding plan
Increasing inventory turnover
Increasing customer base - answerHigh customer service levels
Improving forecast accuracy contributes to which of the following actions?
Increasing productivity
Decreasing delivery lead times
Increasing inventory turnover
Decreasing sales and operations planning frequency - answerDecreasing delivery lead
times
The sales forecast is disaggregated into individual forecasts at the distribution center
level. What may this result in?
Increases in the planners' need for involvement
Inconsistency between the total forecast and the distribution center forecasts
Forecast errors at the detail level
Decreases in safety stock levels - answerForecast errors at the detail level
Why is forecasting performed within the sales and operations planning cycle?
The forecasting function is located within the sales department.
It is important to forecast based on customer buying habits.
Sales personnel are trained in forecasting methodologies.
Aggregate monetary units are unnecessary for a forecast. - answerIt is important to
forecast based on customer buying habits.
Which of the following products is most likely to be the simplest to develop a sales and
operations plan for?
Plywood
Blue jeans
Ballpoint pens
Printers - answerPlywood
Which of the following is the first level at which existing inventory is accounted for in the
planning hierarchy?
Business planning
Master planning
Sales and operations planning
Detailed scheduling and planning - answerSales and operations planning
