CPIM Practice Exam

What is a key output of distribution requirements planning?

1. Raw material sourcing

2. Master production schedule

3. Inventory turnover analysis

4. Supplier performance metrics

The correct answer is: Master production schedule

Distribution Requirements Planning (DRP) is a crucial component in supply chain management that focuses on the effective allocation and distribution of inventory to meet customer demand. One of the key outputs of DRP is the Master Production Schedule (MPS). The MPS provides a detailed plan on what needs to be produced, in what quantities, and at what times to meet the forecasted demand from customers. It helps align production activities with distribution needs and ensures that inventory levels are adequate to fulfill orders while minimizing excess stock. By linking production schedules directly to customer demand, the MPS serves as a blueprint for managing resources efficiently, allowing for better planning and reduced lead times. This output is essential for coordinating the flow of materials and products throughout the supply chain, ensuring that the right products are available at the right locations when needed. Other options focus on different areas of the supply chain process, such as sourcing materials, analyzing inventory turnover, or measuring supplier performance, but they do not directly relate to the distribution planning output in the way that the Master Production Schedule does.