Exam 8: Sales and Operations Planning

One of the conditions that makes yield management effective is when inventory is easily stored and held for a time when demand is stronger.

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement?

In a services organization, strategic capacity planning follows process planning.

The sales and operations planning process is made up of a variety of analytical techniques that interact to produce short and intermediate term goals.

The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.

Using the cut-and-try method for aggregate operations planning, we can back calculate beginning inventory if we knew the values of other relevant variables. What should have been the initial inventory in units of demand, if the production requirement in units of product is 900, demand forecast is 1,000, and the necessary safety stock is 20 percent of the demand forecast, Choose the right answer for the beginning inventory.

Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.

In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm?

Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing.

In services, once the aggregate staffing level is determined, the focus is on short-term workforce and customer scheduling.

Which of the following is a production planning strategy presented in the textbook?

The International Aggregate Planning Society (IAPS) has developed aggregate operations planning guidelines that are followed by a majority of manufacturing firms.

From an operational perspective yield management is most effective under which of the following circumstances?

The aggregate operations plan variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000, and the necessary safety stock is 10% of the demand forecast, which of the following is the production requirement?

Which of the following is considered a "pure" production planning strategy?

The aggregate operations plan differs in virtually every aspect in service organizations as contrasted with manufacturing organizations.

Order scheduling is the step in the aggregate operations planning process that immediately follows material requirements planning.

The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?