CPIM – MPR questions and answers
with solutions
abnormal demand - ANSWER demand in any period that is outside the
limits established by management policy:
1. Not in the forecast
2. From a nonregular customer
3. Random, nonrecurring, highly variable
4. Not received through normal channels
actual demand - ANSWER made up of customer orders; consumes the
forecast, depending on rules chosen over a time horizon
adaptive smoothing - ANSWER form of exponential smoothing where the
smoothing constant is automatically adjusted as a function of forecast
error measurement
advanced planning and scheduling (APS) - ANSWER techniques that deal
with analysis and planning of logistics and manufacturing during short,
intermediate, and long-term time periods; main components: (1)
demand planning, (2) production planning, (3) produc tion scheduling,
(4) distribution planning, and (5) transportation planning aggregate
forecast
,aggregate forecast - ANSWER estimate of sales for a grouping of
products or product families; used for sales and production planning
aggregate plan - ANSWER plan that includes budgeted levels of finished
goods, inventory, production backlogs, and changes in the workforce to
support the production strategy; aggregated information is used
allocation - ANSWER classification of quantities of items that have been
assigned to specific orders but have not yet been released from the
stockroom to production; process used to distribute material in short
supply
alpha factor/smoothing constant - ANSWER weighting factor used in
exponential smoothing; applied to the most recent demand,
observation, or error (error = actual demand - forecast); range is 0 to 1
base series - ANSWER standard succession of values of demand-over-
time data used in forecasting seasonal items; based on relative level of
demand during the corresponding period of previous years (average
value = 1, >1 is over average demand, <1 is under average demand)
benchmarking - ANSWER comparing a company's costs, products, and
services to that of a company thought to have superior performance
types: (1) competitive (2) financial (3) functional (4) performance (5)
process (6) product (7) strategic
,bill of distribution/distribution network structure - ANSWER shows the
dependencies between stocking locations at multilevel of distribution
network
bill of resources/bill of capacity - ANSWER listing of the required
capacity and key resources needed to manufacture one unit of a
selected item or family; RCCP uses these bills to calculate the
approximate capacity requirements of the MPS
bottom-up replanning - ANSWER (in MRP) process of using pegging data
to solve material availability or other problems performed by the
planner; solutions include compressing lead time, cutting order quantity,
substituting material, and changing the MPS
bucketed system - ANSWER (in MRP, DRP or other time=phased system)
all time-phased data are accumulated into time periods, i.e. buckets
bucketless system - ANSWER (in MRP, DRP or other time-phased system)
time-phased data are processed, stored, and displayed using data
records rather than defined time periods
by-product - ANSWER material of value produced as a residual of or
incidental to the production process
capable-to-promise (CTP) - ANSWER process of committing orders
against available capacity and inventory; used to determine when a new
or unscheduled customer order can be delivered; employees finite
scheduling model of the manufacturing system and includes constraints
, capacity planning using overall factors (CPOF) - ANSWER RCCP
technique; master schedule items and quantities are multiplied by the
total time required to build each item to provide total number of hours
to produce the schedule; historical work center percentages are applied
to the total hours to provide estimate of hours per work center required
cash-to-cash cycle time - ANSWER indicator of how efficiently a company
manages its assets to improve cash flow
= inventory days + accounts receivable days - accounts payable days
chase production method - ANSWER production planning method that
maintains a stable inventory level while varying production to meet
demand
collaborative planning, forecasting, and replenishment (CPFR) - ANSWER
collaboration process where supply chain trading partners jointly plan
key supply chain activities; includes business planning, sales forecasting,
and operations required to replenish raw materials and finished goods
common parts bill of material - ANSWER type of planning bill that groups
common components for a product/family of products into one bill of
material, structured to a pseudo-parent part number
with solutions
abnormal demand - ANSWER demand in any period that is outside the
limits established by management policy:
1. Not in the forecast
2. From a nonregular customer
3. Random, nonrecurring, highly variable
4. Not received through normal channels
actual demand - ANSWER made up of customer orders; consumes the
forecast, depending on rules chosen over a time horizon
adaptive smoothing - ANSWER form of exponential smoothing where the
smoothing constant is automatically adjusted as a function of forecast
error measurement
advanced planning and scheduling (APS) - ANSWER techniques that deal
with analysis and planning of logistics and manufacturing during short,
intermediate, and long-term time periods; main components: (1)
demand planning, (2) production planning, (3) produc tion scheduling,
(4) distribution planning, and (5) transportation planning aggregate
forecast
,aggregate forecast - ANSWER estimate of sales for a grouping of
products or product families; used for sales and production planning
aggregate plan - ANSWER plan that includes budgeted levels of finished
goods, inventory, production backlogs, and changes in the workforce to
support the production strategy; aggregated information is used
allocation - ANSWER classification of quantities of items that have been
assigned to specific orders but have not yet been released from the
stockroom to production; process used to distribute material in short
supply
alpha factor/smoothing constant - ANSWER weighting factor used in
exponential smoothing; applied to the most recent demand,
observation, or error (error = actual demand - forecast); range is 0 to 1
base series - ANSWER standard succession of values of demand-over-
time data used in forecasting seasonal items; based on relative level of
demand during the corresponding period of previous years (average
value = 1, >1 is over average demand, <1 is under average demand)
benchmarking - ANSWER comparing a company's costs, products, and
services to that of a company thought to have superior performance
types: (1) competitive (2) financial (3) functional (4) performance (5)
process (6) product (7) strategic
,bill of distribution/distribution network structure - ANSWER shows the
dependencies between stocking locations at multilevel of distribution
network
bill of resources/bill of capacity - ANSWER listing of the required
capacity and key resources needed to manufacture one unit of a
selected item or family; RCCP uses these bills to calculate the
approximate capacity requirements of the MPS
bottom-up replanning - ANSWER (in MRP) process of using pegging data
to solve material availability or other problems performed by the
planner; solutions include compressing lead time, cutting order quantity,
substituting material, and changing the MPS
bucketed system - ANSWER (in MRP, DRP or other time=phased system)
all time-phased data are accumulated into time periods, i.e. buckets
bucketless system - ANSWER (in MRP, DRP or other time-phased system)
time-phased data are processed, stored, and displayed using data
records rather than defined time periods
by-product - ANSWER material of value produced as a residual of or
incidental to the production process
capable-to-promise (CTP) - ANSWER process of committing orders
against available capacity and inventory; used to determine when a new
or unscheduled customer order can be delivered; employees finite
scheduling model of the manufacturing system and includes constraints
, capacity planning using overall factors (CPOF) - ANSWER RCCP
technique; master schedule items and quantities are multiplied by the
total time required to build each item to provide total number of hours
to produce the schedule; historical work center percentages are applied
to the total hours to provide estimate of hours per work center required
cash-to-cash cycle time - ANSWER indicator of how efficiently a company
manages its assets to improve cash flow
= inventory days + accounts receivable days - accounts payable days
chase production method - ANSWER production planning method that
maintains a stable inventory level while varying production to meet
demand
collaborative planning, forecasting, and replenishment (CPFR) - ANSWER
collaboration process where supply chain trading partners jointly plan
key supply chain activities; includes business planning, sales forecasting,
and operations required to replenish raw materials and finished goods
common parts bill of material - ANSWER type of planning bill that groups
common components for a product/family of products into one bill of
material, structured to a pseudo-parent part number
