Plan and Manage Internal Supply Sources

Master production scheduling, material requirements planning (MRP), capacity requirements planning (CRP), and make-or-buy decision analysis.

5 minutes 5 Questions

Plan and Manage Internal Supply Sources is a critical component of supply chain management within the Certified in Planning and Inventory Management (CPIM) framework. It focuses on how organizations effectively utilize their own production capabilities, workforce, and resources to meet demand requi…

Concepts covered
Master Production Scheduling (MPS) FundamentalsCreating and Validating the Master ScheduleUsing and Maintaining the Master ScheduleAvailable-to-Promise (ATP) and Capable-to-Promise (CTP)Bill of Materials (BOM) Structure and ManagementMaterial Requirements Planning (MRP) Logic and MechanicsMRP Inputs, Outputs, and Action MessagesCapacity Requirements Planning (CRP)Rough-Cut Capacity Planning (RCCP)Make-or-Buy Analysis and Decision MakingMRP Lot Sizing and Lead Time OffsettingClosed-Loop MRP and Manufacturing Resource Planning (MRP II)
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CPIM - Plan and Manage Internal Supply Sources Example Questions

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Question 1

What is the primary output of Rough-Cut Capacity Planning (RCCP)?

Correct Answer: A validation of whether the MPS is feasible at key work centers

Rough-Cut Capacity Planning (RCCP) is a capacity check performed against the Master Production Schedule (MPS) to determine whether sufficient capacity exists at key (critical or bottleneck) work centers to meet the proposed schedule.

A detailed scheduling sequence for all operations describes the function of finite scheduling or operations sequencing, not RCCP. Validating the production plan at all work centers confuses RCCP with Resource Requirements Planning (RRP), which operates at the production plan level. A load profile for each routing operation step describes Capacity Requirements Planning (CRP), which is a more detailed analysis performed after MRP explosion.

Key concept tested: the purpose and scope of RCCP within the capacity planning hierarchy.

Question 2

A company sells standard office chairs. A customer asks if 50 chairs can be delivered next week. The sales representative checks the system and sees that 60 chairs are already in the warehouse and not committed to other orders. The representative confirms the delivery. Which type of order promising logic did the representative use?

Correct Answer: ATP logic, since the commitment was based on existing uncommitted inventory

ATP (Available-to-Promise) logic determines order commitments based on existing uncommitted inventory, which is exactly what the sales representative did by confirming delivery from the 60 unreserved chairs already in the warehouse.

CTP (Capable-to-Promise) logic involves checking production capacity, materials availability, and scheduling to determine if an order can be fulfilled through future production, which did not occur here. The option stating ATP involved scheduling a new production run confuses ATP with CTP, since ATP relies solely on current available inventory. The option claiming CTP applies to verifying on-hand stock incorrectly defines CTP, which always involves production planning.

Key concept tested: distinguishing ATP from CTP order promising methods.

Question 3

A company produces four end items within one product family. The production plan calls for 400 units of the family per week. The master scheduler builds the MPS as follows: Item A = 120, Item B = 100, Item C = 90, Item D = 110. Before running RCCP, what should the master scheduler verify about these quantities?

Correct Answer: Confirm the sum of the individual MPS quantities equals the production plan's family total of 400 units per week

The master scheduler must verify that the sum of individual MPS quantities (120 + 100 + 90 + 110 = 420) equals the production plan family total of 400 units per week, ensuring the MPS is consistent with and authorized by the higher-level production plan. In this case, the quantities actually sum to 420, not 400, which would represent a discrepancy that must be reconciled before proceeding.

Matching historical demand proportions is useful but not the primary validation step required. Updating bills of resources relates to RCCP execution itself, not the prerequisite check. Available-to-promise is a customer order management tool, not a production plan reconciliation step.

Key concept tested: MPS-to-production plan reconciliation, ensuring the disaggregated MPS ties back to the aggregate plan.

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