APICS Certified in Production and Inventory Management - Master Planning of Resources

QUESTION NO: 1
An effective implementation of the sales and operations planning (S&OP) processes would typically result in the firm's ability to:

A. reduce budget variances. B. position products in the marketplace. C. increase its market share. D. respond to new opportunities.

Correct Answer: D

QUESTION NO: 2
Which of the following functional objectives of a distribution system is most consistent with lower inventories?

A. Fast deliveries B. High customer service C. Low warehousing costs D. Low transportation costs

Correct Answer: C

QUESTION NO: 3
The greatest risk of aggregating product families at too high of a level for sales and operations planning is that:

A. the sales forecasts will not be as accurate for the larger product families. B. the resource planning process will be more complicated. C. imbalances between the demand plan and resources may not be visible. D. it will be more difficult to reconcile the sales plans with the business plan.

Correct Answer: C

QUESTION NO: 4
A company has an effective sales and operations planning (S&OP) process with monthly plans over a 24 month horizon. The sales and marketing functions have requested that a new product introduction be moved from the tenth month to the sixth month of the current plans which would require a 10% increase in production for months six through nine.
Which of the following actions would be the most appropriate next step in response to the request?

A. Incorporate the request into the current plan B. Request reduction in other demand plans to offset the request. C. Refer the request to the Executive S&OP meeting. D. Reject the request to move the new product release in.

Correct Answer: B

QUESTION NO: 5
The following question is based on the following information:

The master production schedule quantity that should be placed in Period 7 is:

A. 13. B. 20. C. 00. D. 10.

Correct Answer: B

QUESTION NO: 6
A Canadian-based company has a long-term contract with a US-based supplier. The Canadian company has been experiencing short shipments and variations of the supply lead time with the US supplier for a few months. Which of the following is the most appropriate action for the master production scheduler in this situation?

A. Apply safety lead time according to the target service level while planning the master production schedule. B. Ask the purchasing manager to terminate the contract with this supplier, and look for a better supplier. C. Ask the purchasing manager to work with the supplier to improve their shipping quantity accuracy and lead time stability. D. Apply safety stock and safety lead time while planning the master production schedule.

Correct Answer: A

QUESTION NO: 7
The following question is based on the following information:

In Period 1, the quantity that would be exploded to component parts is:

A. 05. B. 20. C. 08. D. 10.

Correct Answer: B

QUESTION NO: 8
Which of the following outcomes indicates the effectiveness of a master schedule?

A. The master schedule meets the target level of responsiveness. B. Finance and accounting participate in the development of the master schedule. C. The number of product families is in the range of 5 to 15. D. Customer service performance measures are reviewed regularly.

Correct Answer: A

QUESTION NO: 9
Sales and Operation Planning's (S&OP) primary objective is:

A. to align operations with the business plan. B. to create a long-term strategy. C. to reduce the forecast variance. D. to finalize the demand plan.

Correct Answer: A

APICS Certified in Production and Inventory Management - Master Planning of Resources - CPIM-MPR Exam Questions