CPIM Practice Exam

If the projected available balance is expected to go negative, what action should be taken?

1. Change the forecast

2. Schedule a master production schedule receipt for that period

3. Change the plan to have a higher beginning inventory balance

4. Do nothing, as it is normal

The correct answer is: Schedule a master production schedule receipt for that period

When the projected available balance is anticipated to go negative, scheduling a master production schedule receipt for that period is an effective action to take. This approach directly addresses the impending shortage by ensuring that additional inventory is produced and available to meet demand. By increasing the planned production in the master schedule, the organization can actively mitigate the risk of stockouts and maintain service levels, which are critical in supply chain management. Changing the forecast may not immediately resolve the issue of a negative balance since it could mean adjusting expectations rather than addressing the actual inventory levels. Likewise, altering the plan to increase the beginning inventory may not be feasible, as it depends on current inventory levels and the ability to acquire or produce more stock. Simply doing nothing is generally not advisable in supply chain management, as it could result in running out of stock, thereby leading to potential lost sales and customer dissatisfaction. Thus, scheduling a production receipt ensures proactive measures are taken to align inventory with demand effectively.