QUESTION: 1

A key benefit of an effective sales and operations planning (S&OP) process is that it provides a:

direct and consistent dialogue between operations and senior management.
means to evaluate the feasibility of business plans.
procedure for defining product family priorities.
statement of production required to meet unconstrained demand.

Answer(s): A

Since introducing distribution requirements planning, management at a company has had increased complaints from staff at satellite warehouses that the variances of local demand are being ignored, and they often are unable to meet demand. An effective response from management would be to:

allow adjustments to the forecast based on input relating to local sales activity.
permit last-minute changes to the production schedule.
increase safety stock at the central warehouse of items that are repeatedly out of stock.
implement an ABC inventory management strategy.

Answer(s): A

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