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SAP Exam C_TS422_2023 Topic 10 Question 7 Discussion

Actual exam question for SAP's C_TS422_2023 exam
Question #: 7
Topic #: 10
[All C_TS422_2023 Questions]

Your company produces a finished good based on a forecast and expects it to be in stock when customers order it. If customers order more than the forecasted quantity, this must NOT have any impact on the production program. Which planning strategy do you use?

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Suggested Answer: A

Make-to-stock production (10) is a planning strategy that supports the production of a finished good based on a forecast and without any reference to sales orders. This strategy is used when the finished good has a stable and predictable demand, and the company wants to maintain a certain level of safety stock to meet customer orders. If customers order more than the forecasted quantity, this does not affect the production program, as the system does not generate any additional planned orders or purchase requisitions for the finished good. Instead, the system reduces the planned independent requirements by the sales order quantity, and the excess demand is covered by the safety stock or the available stock. This strategy allows for a smooth and continuous production process, and avoids frequent changes in the production plan.Reference:Make-to-Stock Production | SAP Help Portal,Planning Strategies | SAP Help Portal,SAP S/4HANA Production Planning and Manufacturing Certification Guide, page 52.


by Filiberto at Jul 10, 2024, 08:47 PM

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Rozella
23 days ago
D all the way! Planning without final assembly is the way to go. That way, the company can adapt to changes in demand without disrupting the whole production process. This is some serious supply chain strategy stuff!
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Anabel
2 days ago
I agree, planning without final assembly allows for more flexibility in production.
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Silvana
27 days ago
That's true, but planning with final assembly allows for customization and flexibility in production.
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Dana
27 days ago
Haha, this question is a real brain-teaser! I'm going to go with B. Planning with final assembly - it's the only one that sounds like it could handle the unexpected demand without messing up the production plan.
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Deja
4 days ago
I think Make-to-stock production (10) would not be able to handle the unexpected demand without impacting the production program.
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Iluminada
6 days ago
Yeah, it's important to have a strategy in place to deal with situations where demand exceeds the forecasted quantity.
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Dean
8 days ago
I agree with you! Planning with final assembly seems like the best option to handle unexpected demand.
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Glen
30 days ago
This is a tricky one, but I'm going with C. Make-to-stock production seems like the logical choice to ensure the product is available when customers order it.
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An
1 months ago
D is the correct answer. Planning without final assembly allows the company to adjust production without impacting the existing program. Make-to-stock is not the right approach here.
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Trina
1 months ago
But with make-to-stock production, the finished goods are already produced and ready to be shipped when customers order them.
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Silvana
1 months ago
I disagree, I believe the correct answer is B) Planning with final assembly.
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Hortencia
1 months ago
I think the answer is B. Planning with final assembly seems to be the right strategy when the company expects the product to be in stock and needs to handle unexpected customer demand.
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Magnolia
9 days ago
I think the answer is C. Make-to-stock production also ensures the product is in stock when customers order it.
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William
14 days ago
I agree, planning with final assembly allows for flexibility in handling unexpected customer demand.
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Trina
1 months ago
I think the answer is A) Make-to-stock production.
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