OPRE 4320 EXAM 2 QUESTIONS WITH VERIFIED
ANSWERS
The Primary goal of Sales & Operations Planning is to create an operationally feasible
production plan: True or False - Answers - True
When SOP performs an aggregation of a forecast it will: - Answers - Sum up forecasts
from individual members into a parent level forecast.
The SOP planning table is primarily organized around: - Answers - Characteristics and
Key Figures
A forecast profile will tell SOP: - Answers - What forecasting technique to use, Historical
and future time periods
All replenishment planning systems answer the following questions Except: - Answers -
How to store the material made or purchased
Dependent demand is: - Answers - calculated from higher demand
Examples of independent demand in SAP include: - Answers - Forecasts, customer
orders
The value in the MRP Type field on the Material Master that will allow standard MRP to
run is: - Answers - PD
If a fixed order quantity of 50 is defined as a lot size date value and there is a net
requirement of 150 with no existing inventory then MRP will create: - Answers - 3
planned orders for 50 each
Using Basic Scheduling what master data object below is read: - Answers - Material
Master
The results of an MRP run may be viewed through the MD04 transaction. True or False
- Answers - True
Forecasts are more accurate in the long term than short term. True or False - Answers -
False
Forecasting may be performed in SAP using: - Answers - Manual Entry, sales &
operations planning, APO - Demand Planning
, If a forecast is only expressed in financial terms (revenue, profit, etc.) it fails which
element: - Answers - Meaningful
A time series is a series of observations taken at irregular intervals. True or false -
Answers - false
For the data below, what would be the forecast for April using a 3 month moving
average? Jan 250, Feb 200, Mar 275 - Answers - (250+200+275)/3 =241.66 or 242
What would be the forecast for May if 220 units were sold in April? (Jan 250, Feb 200,
Mar 275), April 220 - Answers - (242+220)/2=232 ish
Demand Management in SAP primarily works with the following types of demand -
Answers - independent
The potential inputs into the Demand Management function in SAP include: - Answers -
Material forecasts, sales plan, production plan, manual entry
The output(s) from Demand Management are: - Answers - Planned independent
requirements (PIR), Net quantities, Required dates
The output from Demand Management will feed: - Answers - MRP or MPS
A strategy group in SAP that will consume the forecast is: - Answers - Strategy 40
What is the primary objective of the Material Planning Process S&OP - Answers - to
identify and resolve material shortages before they impact production.
Forecasting basics are: - Answers - an estimate of demand in the future.
Are forecast ever 100% accurate? - Answers - No
Forecast can be inaccurate in two ways: - Answers - random variation and bias variation
Steps in the forecasting process are:
1. determine the purpose of the forecast
2. establish a time horizon
3. obtain, clean and analyze appropriate data
4. select a forecasting technique
5. make the forecast
What is the 6th and final step? - Answers - monitor the forecast
Qualitative forecasting techniques: - Answers - permit the inclusion of soft information
such as human factors, personal opinions and hunches
ANSWERS
The Primary goal of Sales & Operations Planning is to create an operationally feasible
production plan: True or False - Answers - True
When SOP performs an aggregation of a forecast it will: - Answers - Sum up forecasts
from individual members into a parent level forecast.
The SOP planning table is primarily organized around: - Answers - Characteristics and
Key Figures
A forecast profile will tell SOP: - Answers - What forecasting technique to use, Historical
and future time periods
All replenishment planning systems answer the following questions Except: - Answers -
How to store the material made or purchased
Dependent demand is: - Answers - calculated from higher demand
Examples of independent demand in SAP include: - Answers - Forecasts, customer
orders
The value in the MRP Type field on the Material Master that will allow standard MRP to
run is: - Answers - PD
If a fixed order quantity of 50 is defined as a lot size date value and there is a net
requirement of 150 with no existing inventory then MRP will create: - Answers - 3
planned orders for 50 each
Using Basic Scheduling what master data object below is read: - Answers - Material
Master
The results of an MRP run may be viewed through the MD04 transaction. True or False
- Answers - True
Forecasts are more accurate in the long term than short term. True or False - Answers -
False
Forecasting may be performed in SAP using: - Answers - Manual Entry, sales &
operations planning, APO - Demand Planning
, If a forecast is only expressed in financial terms (revenue, profit, etc.) it fails which
element: - Answers - Meaningful
A time series is a series of observations taken at irregular intervals. True or false -
Answers - false
For the data below, what would be the forecast for April using a 3 month moving
average? Jan 250, Feb 200, Mar 275 - Answers - (250+200+275)/3 =241.66 or 242
What would be the forecast for May if 220 units were sold in April? (Jan 250, Feb 200,
Mar 275), April 220 - Answers - (242+220)/2=232 ish
Demand Management in SAP primarily works with the following types of demand -
Answers - independent
The potential inputs into the Demand Management function in SAP include: - Answers -
Material forecasts, sales plan, production plan, manual entry
The output(s) from Demand Management are: - Answers - Planned independent
requirements (PIR), Net quantities, Required dates
The output from Demand Management will feed: - Answers - MRP or MPS
A strategy group in SAP that will consume the forecast is: - Answers - Strategy 40
What is the primary objective of the Material Planning Process S&OP - Answers - to
identify and resolve material shortages before they impact production.
Forecasting basics are: - Answers - an estimate of demand in the future.
Are forecast ever 100% accurate? - Answers - No
Forecast can be inaccurate in two ways: - Answers - random variation and bias variation
Steps in the forecasting process are:
1. determine the purpose of the forecast
2. establish a time horizon
3. obtain, clean and analyze appropriate data
4. select a forecasting technique
5. make the forecast
What is the 6th and final step? - Answers - monitor the forecast
Qualitative forecasting techniques: - Answers - permit the inclusion of soft information
such as human factors, personal opinions and hunches
