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Certified in Production and Inventory Management - Master Planning of Resources Questions and Answers

Question 1

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?

Options:

A.

Reject the request to move the new product release in.

B.

Request reduction in other demand plans to offset the request.

C.

Incorporate the request into the current plan

D.

Refer the request to the Executive S&OP meeting.

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Question 2

A company wanting to maintain a high level of customer service at the lowest inventory carrying cost should place safety stock in:

Options:

A.

central and field warehouses.

B.

field warehouses.

C.

a central warehouse.

D.

customer's facilities.

Question 3

An effective implementation of the sales and operations planning (S&OP) processes would typically result in the firm's ability to:

Options:

A.

increase its market share.

B.

position products in the marketplace.

C.

reduce budget variances.

D.

respond to new opportunities.