CPIM Module 2 E

Using the information provided below, what is the monthly planned production? 630 660 1,000 1,100

1,100 (12,600 + 600)/12 = 1,100

Using the information provided below, how many employees are needed to accomplish the planned production? 10 25 200 2,400

10 The answer is calculated as follows: 60,000/12 = 5,000 5,000/20 = 250 250/25 = 10

Based on the information provided below, what would the production plan be? 2,000 2,200 2,500 2,800

2,200 The company plans to decrease the inventory by 300 in addition to selling 2,500 units. The production plan would need to be 2,200.

Based on the information provided below, what is the actual March backlog? 20 21 23 24

24 The actual customer order backlog is calculated by adding the actual ending backlog for a period to the actual sales bookings in the next period and then subtracting the next period's production plan.

Based on the information provided below, what is the actual March inventory ? 8 28 29 30

28

What monthly unit production amount would be required to satisfy the production plan given the following information? 3,900 units 4,000 units 4,100 units 6,000 units

4,100 units Planned production per period equals the total production required divided by the number of periods (18 months in this example). Total production required equals the total forecasted demand (72,000 units) minus the beginning inventory (4,800 units) plus the ending inventory (6,600 units); 72,000 - 4,800 + 6,600 = 73,800. Planned production per period = 73,800 units/18 months = 4,100 units per month.

A company intends to cut its backlog from four months to two. Annual demand is 360 units. What is the number of units that should be included in the production plan? 300 360 420 720

420 The production rate is 30 units per month. To decrease backlog, an extra 60 units should be produced above the annual demand.

What should the length of the master scheduling planning horizon be for a make-to-stock product? At least as long as the manufacturing lead time Equal to the delivery lead time Equal to the sales and operations planning horizon At least as long as the cumulative lead time

At least as long as the cumulative lead time If the planning horizon is shorter than the longest cumulative lead time, there will not be enough time to order components.

The master scheduler would ignore which of the following elements when setting up the bill of resources? Setup Equipment Demand Labor

Demand

A company ships production to its distribution centers (DCs) weekly. When reporting inventory levels at the end of the month for the sales and operations planning process, under which of the following categories should the inventory at the production facility be reported? Distribution Finished goods Pipeline In-transit

Finished goods

A company performs sales and operations planning monthly, with a production planning horizon extending four months into the future on a rolling basis. Business planning is performed annually and reviewed monthly. The longest lead time (six weeks) is for parts that are specialty items. What should the forecasting horizon length be? Six weeks to match the longest lead time 12 months to match the business planning cycle Four months to match the production planning interval One month to match the sales and operations planning cycle

Four months to match the production planning interval Forecast must go out as far as the production planning horizon.

Which of the following actions to improve the validity of the master schedule is most under the master scheduler's control? Reducing sources of supply problems Aggregating capacity by flattening bills of material Improving the accuracy of the resource bills of material Identifying sources of demand problems

Improving the accuracy of the resource bills of material

Which of the following key resources is most likely to be used to validate the production plan in a high-volume company that produces a number of families of windows, including standard and custom sizes and unique designs? Plate glass Housing starts Production rate Labor hours

Labor hours

What is a bill of resources? Listing of key materials required to manufacture one unit of a selected item Listing of key resources required to manufacture one unit of a selected item Amount of product that can be loaded for distribution Unique configuration created to aid the master scheduler

Listing of key resources required to manufacture one unit of a selected item

Stockouts have occurred due to failures by suppliers to ship on schedule, causing extensive backorders. The past-due orders were successfully reduced due to overtime once the parts arrived. What is the best approach for incorporating this information into the sales and operations planning process for the upcoming month? Reduce the forecast demand in the first period and replace it with the remaining past-due orders. Maintain the existing approach for developing the production and operational plans. Reduce the production plan in the first period to free up capacity for the past-due orders. Increase the demonstrated capacity in the first period to reflect the use of overtime.

Maintain the existing approach for developing the production and operational plans. The plan is still valid, as the problem was due to a supplier issue.

Which information could be evaluated prior to the end of the month in order to streamline the sales and operations planning process? On-time performance Forecast accuracy New product review Finished goods levels

New product review

A resource plan is based on which of the following components? One lot size of a typical product One lot size of each product One unit of a typical product One unit of each product

One unit of a typical product

What is the focus of the sales and operations planning meeting? Planned vs. actual numbers Qualitative knowledge Previous month's numbers Plan for future months

Plan for future months

Manufacturing is responsible for executing which of the plans that come from the sales and operations planning meeting? Capacity Sales Backlog Production

Production

Which of the following approaches can streamline the sales and operations planning review process? Delegate the reviews among the demand team. Generate reports that show full detail and associated aggregations. Report only out-of-tolerance conditions, with further detail available. Add additional months to the rolling plan only when necessary.

Report only out-of-tolerance conditions, with further detail available.

A disagreement between sales and production when modifying the sales and operations plan is most likely to be caused by which of the following? No capacity for a two-week shutdown in July Sales not considering production's overdue orders Product mix sales always being inaccurate Sales volume being consistently overstated

Sales volume being consistently overstated An overstated sales plan will result in an overstated production plan, causing production to overplan resources.

What should be included in the pre-S&OP meeting? Definition of product families to be used for planning Discussion of customer service improvement plans Determination of reasons for quality problems Solution for imbalances of supply and demand

Solution for imbalances of supply and demand

Which of the following is most correct regarding the production plan in a make-to-stock environment? An overloaded production plan alerts the master scheduler to correct the condition in the master production schedule. Past-due load in the production plan receives an increased priority by the planner's use of the critical ratio technique. A production plan cannot be used for one-of-a-kind products that have not been assigned to a product family. The production plan is the time-phased plan of overall output, and it may be stated in terms of units, tons, or linear feet.

The production plan is the time-phased plan of overall output, and it may be stated in terms of units, tons, or linear feet.

The production planning process uses which of the following time fences? Demand time fence Planning time fence Production planning time fence There are no time fences in production planning.

There are no time fences in production planning.

Which of the following is a reason for evaluating multiple sales and operations plans during the pre-S&OP meeting? Because the S&OP plan cannot be finalized until delivered to top management Because they are theoretical plans only and so can be changed at any time To assess their financial implications Because the forecast provided may not be accurate

To assess their financial implications

What is the role of top management in the sales and operations planning (S&OP) process? To develop the production plan To provide the information used in the process To commit to the process and the results To make the final decisions after the meeting

To commit to the process and the results

Which of the following is an objective of the production planning process? To integrate the business plan with the operations plan To communicate the business plan to top management To provide a basis for measuring performance To provide sales with information for sales quotas

To integrate the business plan with the operations plan The business plan drives the sales and operations plan, which then produces the production plan, which is used to determine the master production schedule.

Sales are linked to the distribution network by: warehouse management systems. demand forecasts. transportation costs. rough-cut capacity planning.

demand forecasts.

The capacity planning technique used at the S&OP planning level is: detailed capacity requirements planning. resource planning. input/output control. rough-cut capacity planning.

resource planning.