14 Multiple Choice Questions

1.

1. Direction setting from strategic/business planning 2. Demand inputs (fcst /bklg) from Sales Planning 3. Resource Planning to check capacity 4. Disti Planning for Disti Inv and logistics resources 1. CORRECT: S&OP relationships

2.

1. Periods 2. Rows 3. Sales plan 4. Production plan 5. Inv plan 6. Planning time fence 7. History 1. CORRECT: Elements of the S&OP grid

3.

1. Sales 2. Production 3. Inv 4. Backlog 5. Finance 1. CORRECT: Tactical plans produced by S&OP

4.

1. Executive champion 2. S&OP Process owner 3. Demand Planning team 4. Supply Planning team 5. Pre-S&OP team 6. Executive S&OP team 1. CORRECT: 6 major roles in S&OP

5.

1. Change the sales plan 2. Change the production plan 3. Change the inv/backlog plan 4. Change the Volume/Mix plan 5. No change 1. CORRECT: Results of the S&OP process

6.

Where product groupings do not line up with resources. 1. CORRECT: non-aligned resources

7.

1. Product family definition 2. Units of measure (UOM) 3. Planning horizon 1. CORRECT: Key Planning Factors in S&OP process

8.

1. Choice of production planning method 2. Product family volume decisions 3. Inv vs Cust Service level tradeoffs 4. Priorities among S&M, Operations and Finance 5. New Product introductions 1. CORRECT: Alternative S&OP scenario inputs

9.

1. Linkages to key data; Shipping and sales data at the family level 2. Determining what to measure and what to report 3. Timely reporting. 1. CORRECT: S&OP performance against the plan reporting requires

10. 1. Assess impact of production planning choices on cust serv and inv level
2. Compare projected rev, cost and profit scenarios 3. Analyze impact on financial statements and cash flow 4. Agree on one set of numbers for all orgs 1. CORRECT: Evaluating financial implications of S&OP plans

11. 1. Level method

2. Chase method 3. Hybrid method 1. CORRECT: 3 basic production methods

12. 1. Connects business planning with tactical planning at the MPR level
2. Balance supply and demand at the family level 3. Concerned with volume at the family level 4. Uses aggregate time buckets 1. CORRECT: S&OP Major attributes

13. 1. Balance supply/demand

2. Product level family planning

1.

CORRECT: Fundamental issues addressed by S&OP

14. 1. Data gathering.

2. Demand planning 3. Supply planning 4. Pre S&OP meeting 5. Exec meeting 1. CORRECT: 5 steps of the monthly S&OP process

15. 1. Executive involvement

2. management risk 3. cost of forecast 4. level of aggregation 5. frequency 6. horizon

1. 2. 3.
4.

Structured forecasting process Forecasting techniques Forecasts included in a pyramid forecast process CORRECT: Forecasting criteria for each forecasting level

16. 1. strategy and Planning (collaboration/joint business plan)

2. demand and supply management (sales forecasting/order planning) 3. execution (order generation/order fulfillment) 4. analysis (execution monitoring/performance assessment)

1. 2.
3.

Coefficient of variation Roll up forecast process CORRECT: 4 levels of CPFR partnering basic elements of CPFR

4.

17. 1. sharing of forecasts and promotional plans during the mfg's S&OP
2. coordination of production, inv planning and frequent delivery of small lots 3. reduction of inv levels and increase in fcst accuracy 4. decrease in inv investment, increase in profit 1. CORRECT: basic elements of CPFR exponential smoothing

2.

3. 4.

qualitative techniques Causal techniques

18. 1. Data gathering

2. forecast generation 3. volume and mix reconciliation 4. apply judgement 5. volume and mix reconciliation #2 6. decision making/authorization 7. volume and mix reconciliation #3 8. documenting assumptions

1. 2. 3.
4.

Roll up forecast process Forecasting techniques Causal techniques CORRECT: Structured forecasting process

19. 1. high volume- high variance: use aggregate forecast then assemble to order
2. low volume-high variance: consider MTO 3. low volume-low variance: aggregate fcst and inv MTO 4. high volume - low variance: statistical forecast techniques 1. CORRECT: Volume vs Variance quadrants forecast used.. Forecasts included in a pyramid forecast process Internal factors affecting forecasts INCORRECT:

2. 3.
4.

20. 1. qualitative
2. quantitative 1. CORRECT: Forecasting techniques 2 causal techniques Causal techniques qualitative techniques

2. 3. 4.

21. 1. customers
2. competition 3. economic outlooks/demographics 4. disruptive events 5. market life cycle 6. emerging technology

1. 2. 3.
4.

keys to successful forecasting Internal factors affecting forecasts Structured forecasting process CORRECT: external factors affecting forecasts

22. 1. time series (intrinsic)

2. causal (extrinsic)

1.
2. 3.

qualitative techniques INCORRECT: CORRECT: quantitative technique Causal techniques

4.

23. 1. simple regression (one independent one dependent variable)

2. multiple regression (multiple independent variables and one dependent variable) 1. INCORRECT: qualitative techniques Forecasting techniques CORRECT: 2 causal techniques

2. 3.
4.

24. alpha(latest demand) = (1-alpha) (latest forecast) 1. 2.

3. 2 causal techniques Coefficient of variation CORRECT: exponential smoothing qualitative techniques

4.

25. 1. sample ave

2. moving ave 3. weighted moving ave 4. exponential smoothing 5. time series decomposition

1. 2.
3.

quantitative technique qualitative techniques CORRECT: quantitative techniques Causal techniques

4.

26. 1. individual product forecasts

2. product family forecasts(rolled up individual forecasts) 3. business level forecasts (corp level) includes promotions, expansions, NPI 4. Management forecast that reconciles business forecast and rolled up forecast

1.
2.

Forecasting criteria for each forecasting level CORRECT: Forecasts included in a pyramid forecast process Structured forecasting process INCORRECT:

3.
4.

27. 1. independent judgement of experts.

2. judgement of executives and management 3. market research 4. sales estimates 5. historical analogy 1. CORRECT: qualitative technique categories quantitative techniques quantitative technique INCORRECT:

2. 3.
4.

28. 1. people (who make forecast model decisions)

2. access to data (relevant data) 3. selection of software to support the forecasting requirements 1. INCORRECT:

2.

CORRECT: keys to successful forecasting exponential smoothing Structured forecasting process

3. 4.

29. 1. forecast end items in units and dollars

2. roll up units and dollars to the product family level 3. roll up product family dollars to a total forecast dollars

1. 2.
3.

Structured forecasting process Causal techniques CORRECT: Roll up forecast process 2 causal techniques

4.

30. attempt to quantify the relationship between and independent variable (predictor) and and
dependent variable (predicted)

1. 2.
3.

2 causal techniques qualitative techniques CORRECT: Causal techniques Forecasting techniques

4.

31. (standard deviation of period demand)/(ave period demand) 1. 2.

3. Forecasting techniques basic elements of CPFR CORRECT: Coefficient of variation exponential smoothing

4.

32. 1. expert opinion

2. management estimation 3. pyramid 4. focus group 5. survey 6. panel consensus 7. delphi method

8. sales force composite 9. product life cycle analysis

1. 2.
3.

quantitative techniques quantitative technique CORRECT: qualitative techniques Forecasting techniques

4.

33. 1. capital expansion

2. development of new product lines 3 mergers acquisitions and divestitures 1. CORRECT: Decisions made at the Strategic and Business Planning level Forecasting criteria for each forecasting level qualitative technique categories Forecasts at the S&OP level decide..

2. 3. 4.

34. 1. preparation of the MPS and RCCP

2. schedule control

1.
2.

Forecasting techniques CORRECT: Forecasts at the MPS level help support.. components of times series data Forecasts at the S&OP level decide..

3. 4.