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Certified in Production and Inventory Management - Master Planning of Resources Questions 16–20 (page: 5)

Updated On: 10-Feb-2026

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?

  1. Reject the request to move the new product release in.
  2. Request reduction in other demand plans to offset the request.
  3. Incorporate the request into the current plan
  4. Refer the request to the Executive S&OP meeting.

Answer(s): B



The forecast tracking signal is the ratio of the:

  1. forecast to the MAD.
  2. cumulative error to the MAD.
  3. cumulative error to the forecast.
  4. standard deviation to the MA

Answer(s): B



An outcome of top management's participation in sales and operations planning involves the:

  1. delegation of trade-off resolutions to middle management.
  2. investigation of detailed trade-offs by top management.
  3. definition of trade-offs by top management.
  4. resolution of broad trade-offs by top management.

Answer(s): D



The question below is based on the following production environment information:
In which facility would product unit costs most likely be reduced through a setup reduction program?

  1. Facility A
  2. Facility B
  3. Facility C
  4. Facility D

Answer(s): C



In a make-to-order environment, if cumulative production exceeds cumulative demand, which of the following outcomes will result?

  1. Excess capacity will exist.
  2. Inventory will increase.
  3. The backlog will increase.
  4. The backlog will decrease.

Answer(s): D



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