CPIM Practice Exam

In a scenario where a new customer order may be delivered, which process is utilized?

1. Master scheduling

2. Backflushing

3. Capable-to-promise

4. Order fulfillment

The correct answer is: Capable-to-promise

The concept of "capable-to-promise" is crucial in production and inventory management, especially when dealing with new customer orders. This process assesses the current capacity and available inventory to determine if the organization can meet the requested delivery date for a new order. It considers the constraints of production resources, lead times, and existing orders to make a realistic promise to the customer. This ensures that the business can commit to delivering the product without overextending its capabilities, thereby balancing customer satisfaction with operational efficiency. In contrast, master scheduling pertains to planning and determining when products will be available, but it does not directly address new order commitments based on real-time capacity. Backflushing refers to an inventory management technique used after production to subtract materials from inventory based on the finished goods produced, which does not relate to the proactive management of customer delivery commitments. Order fulfillment involves the complete process of delivering the product to the customer, but it is a broader term that encompasses all steps from order placement to delivery and might not specifically evaluate the company's capacity to deliver on new orders. Thus, "capable-to-promise" is the most appropriate choice for assessing if a new customer order can be fulfilled by a certain delivery date.