Exam 18: The Sales and Operations Planning Process

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 50 workers Production per Employee = 250 units per quarter Hiring Cost = $1000 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $15 per unit per quarter If a chase demand strategy is used then the number of workers hired at the start of quarter 2 is

A mixed strategy for adjusting capacity is simpler and easier to implement than any pure strategy.

The difference between planned production and customer orders is known as

A company is developing a linear programming model for its aggregate production plan.If W_t = workforce size for period t,H_t = number of workers hired for period t,and F_t = number of workers fired for period t,then the company's workforce constraint for period 2 is

Yield management can be used to address all of the following problems except

Given the information below,the number of available-to-promise units in period 4 is

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 35 workers Production per Employee = 1,250 units per quarter Hiring Cost = $500 per worker Firing Cost = $1,000 per worker Inventory Carrying Cost = $20 per unit per quarter If a level production strategy is used then the required quarterly output is

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 125 workers Production per Employee = 500 units per quarter Hiring Cost = $750 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $10 per unit per quarter If a level production strategy is used the number of units to produce each quarter is

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 50 workers Production per Employee = 250 units per quarter Hiring Cost = $1000 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $15 per unit per quarter If a level production strategy is used then the required output per quarter is

Adjusting available capacity by hiring and firing workers to match demand is an example of a(n)___ strategy.

Most companies use mixed strategies for managing demand.

Reconciliation of the sales plan and the operations plan may include adjusting capacity and/or managing demand.

Disaggregation is the process of breaking a sales and operations plan into more detailed plans.

When demand fluctuations are extreme,using overtime and undertime is a feasible strategy for adjusting capacity.

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 35 workers Production per Employee = 1,250 units per quarter Hiring Cost = $500 per worker Firing Cost = $1,000 per worker Inventory Carrying Cost = $20 per unit per quarter If a chase demand strategy is used then the total firing cost for the plan is

A chase strategy involves hiring and firing workers so that production matches demand.

A bagel company bakes a specialty bagel that it sells by the dozen every day.These specialty bagels can only be baked early in the morning before the store opens for business.The company estimates that the daily demand (in dozens)for its specialty bagel is distributed as follows: Specialty bagels are sold by the dozen only at a cost of $9.00 per dozen.The cost to make one bagel is $0.50.Leftover specialty bagels are sold by the dozen the next day for a 50% discount.The bagel company's cost of overestimating demand,Co,is

The transportation method is used for aggregate planning when the strategy for adjusting capacity is hiring and firing workers.

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 35 workers Production per Employee = 1,250 units per quarter Hiring Cost = $500 per worker Firing Cost = $1,000 per worker Inventory Carrying Cost = $20 per unit per quarter If a level production strategy is used then the number of workers required for the plan is

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 50 workers Production per Employee = 250 units per quarter Hiring Cost = $1000 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $15 per unit per quarter If a chase demand strategy is used then the number of workers fired at the start of quarter 3 is