CPIM Module 2 C

Which of the following sales and operations planning results is most likely to be used to measure sales department performance in an engineer-to-order environment? Inventory plan Backlog plan Financial plan Capacity plan

Backlog plan

A company produces hats that can be personalized with logos. Delivery is quoted as ten days from receipt of the order. Which of the following sales and operations planning elements is most likely to be of little use to management? Production plan Demand forecast Inventory plan Backlog plan

Backlog plan This is an assemble-to-order environment; it would not have a backlog plan.

Which of the following interfaces deals primarily with translating monetary units into product families for planning purposes? Business planning to sales and operations planning Master scheduling to detailed scheduling and planning Strategic planning to business planning Sales and operations planning to master scheduling

Business planning to sales and operations planning

What is the range of customer service levels for a make-to-stock organization during May through September if what is shown below is the ending inventory level by month and the only stockouts occurred in April and October of this year? 97-100% 86-98% 51-85% 0-50%

97-100% The customer service level is 100%, since there were no stockouts from May through September.

What does a large backlog indicate in an engineer-to-order environment? Engineering design is too slow. Job security is stable. Capacity is too low. Inventory turns are high.

Job security is stable.

A company is changing from a make-to-order environment to an assemble-to-order environment. Which of the following areas will likely change the most? Management of backlog Customer order service measures Internal service measures Customer feedback

Management of backlog

Which of the following uses a finite-scheduling model to determine when an item can be delivered to a customer and includes any constraints that might restrict production? Capable-to-promise Available-to-promise Operating curve Constraint finite scheduling

Capable-to-promise

Which of the following processes employs a finite scheduling model of a company's manufacturing system to determine when an item can be delivered? Make-to-order Engineer-to-order Available-to-promise Capable-to-promise

Capable-to-promise Capable-to-promise uses a finite-scheduling model of the manufacturing system to determine when a new or unscheduled customer order can be delivered. It includes any constraints that might restrict the production, such as availability of resources, lead times for raw materials or purchased parts, and requirements for lower-level components or subassemblies.

What must management do in order to ensure that the operational performance of the business is measured by the production plan? Use the management-by-walking-around philosophy. Change the plan only annually. Publish the plan to all employees. Communicate expectations of the plan.

Communicate expectations of the plan.

In a distribution environment, which of the following functions is generally considered a joint responsibility of the manufacturer and the distribution center? Customer order servicing and administration Determination of finished product packaging Warehousing finished goods prior to shipment Distribution center site selection analysis

Customer order servicing and administration

Which of the following issues would be of greatest concern for a company choosing to reduce its finished goods inventory? Customer service expectations Product shelf life constraints Long production changeover time Product quality requirements

Customer service expectations

In determining a forecast for a distribution center, which of the following dates should be used? Month-end dates Order receipt dates Order promise dates Customer-requested dates

Customer-requested dates

Which result is indicated in the information provided below regarding customer service levels? The backlog plan needs to be increased by eight in March. New customer order delivery lead times have increased. Extra backlog improves the ability to ship complete orders on time. Production is back on schedule.

New customer order delivery lead times have increased. Actual backlog is greater than plan, which will extend lead times.

A company performs the final assembly and packaging stage of the product at the distribution center. What is this process known as? Consolidation Postponement Terminal handling Break-bulk

Postponement

A company has not been able to provide customers with information when a make-to-stock item is out of stock. Which of the following actions would be beneficial in this situation? Implement forecast accuracy measures. Provide available-to-promise information to customer service. Increase safety stock levels to reduce stockouts. Increase sales and operations planning frequency.

Provide available-to-promise information to customer service. Available-to-promise is the uncommitted portion of a company's inventory and planned production maintained in the master schedule to support customer order promising.

An organization's sales, production, and inventory plans are provided below. What is the most likely reason for the organization to have any inventory in June? Safety stock Emergencies Lot-size inventory Hedge inventory

Safety stock

Distribution and materials management should work together to determine which of the following? Safety stock policies Engineering changes Utilization of personnel Transportation budgets

Safety stock policies

Which of the following data is excluded from consideration in the available-to-promise (ATP) calculation? Master production schedule orders Customer orders Safety stock quantity On-hand inventory

Safety stock quantity

A company uses a moving average to forecast on a monthly basis, and it has many customers with varied demand. Which of the following is the best example of a root cause of an outlier in the forecast? Actual demand for a period that is three standard deviations greater than the forecast One customer order within a period that is 10 times larger than any other order Actual demand for a period that causes the next period's forecast to exceed the median Shutdown of the company for a month with no customer orders accepted

Shutdown of the company for a month with no customer orders accepted

A company produces some of its 20 top sellers every day. It has a customer service policy of 99.5%, with next-day air shipments for each order. What is the most likely reason for not carrying safety stock on its highest-volume products? Producing some of each item every day guarantees no stockouts. It is acceptable to have stockouts because the service level policy is not 100%. Stockout duration will be short and few orders will be affected. Not carrying safety stock improves inventory turns.

Stockout duration will be short and few orders will be affected.

Demand that comes from a new customer or is outside the limits established by management policy is known as: random variation. a trend. abnormal demand. a divergent point.

abnormal demand.

In the sales and operations planning process, the responsibility for the finished goods inventory levels belongs to: finance. sales and marketing. manufacturing. master scheduling.

sales and marketing.

Customer order promises should be made by: the salesperson estimating when the product will be available. the use of standard lead times. taking into account material and capacity availability. using sales and operations planning.

taking into account material and capacity availability.

At the master production schedule level, safety stock is: used to account for possible scrap. not required by the master scheduler. used to provide a hedge against uncertain demand. used in make-to-order companies.

used to provide a hedge against uncertain demand.

Records state that finished goods inventory has 100 items in stock when there are actually 110. The first 100 customer orders are accepted and scheduled for immediate shipment. The next 50 customer orders are scheduled and promised for shipment the following week based on the next scheduled receipt. What is the customer service level for the orders scheduled for shipment? 91% 100% 111% Not enough information to determine answer

100% The 100 that were promised this week will all be shipped, so this is a 100% customer service level for the time period.

Which production environments will most benefit from capable-to-promise functionality? Engineer-to-order and make-to-stock Assemble-to-order and make-to-stock Assemble-to-order and make-to-order Engineer-to-order and make-to-order

Assemble-to-order and make-to-order

Which of the following departments is most likely unaffected by frequently overloaded work centers that lead to unrealistic master schedules? Sales Production Finance Purchasing

Finance

If the backlog is higher than the planned amount, which of the following elements is likely to be increasing? Work in process Quoted lead times Cycle times Employment concerns

Quoted lead times

From the customer's perspective, what does delivery lead time consist of? Time from receipt of the customer order to the delivery of the product Time from placing an order to use of the product Time from start of the order preparation to use of the product Time from requirement for a product to receipt of the product

Time from receipt of the customer order to the delivery of the product

Customer relationship management supports total quality management because: they are both part of the manufacturing/customer supply chain. each philosophy focuses on the strategic supply/demand relationship. both philosophies are focused on customer satisfaction. between the two, all external and internal customers are included.

both philosophies are focused on customer satisfaction.

Measuring the order fill rate enables a company to determine: forecast accuracy. throughput time. customer service levels. backorder allocations.

customer service levels.