Question 1

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

Accepted Answer

A) Level 
B) Strategic 
C) Balanced 
D) Synchronous 
E) Optimal 
A) Level 
B) Strategic 
C) Balanced 
D) Synchronous 
E) Optimal A

Question 2

Which of the following is not one of the "number of interesting issues that arise in yield management?"

Accepted Answer

A) Pricing structures must appear logical to the customer and justify different prices 
B) Designing yield management programs that cannot be imitated by a competitor 
C) How to handle variability in customer arrivals, duration, and interval 
D) Managing the service process 
E) Training workers and managers to work in a yield management environment 
A) Pricing structures must appear logical to the customer and justify different prices 
B) Designing yield management programs that cannot be imitated by a competitor 
C) How to handle variability in customer arrivals, duration, and interval 
D) Managing the service process 
E) Training workers and managers to work in a yield management environment B

Question 3

Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?

Accepted Answer

A) Stable workforce, variable work hours 
B) Chase 
C) Level 
D) Meeting demand 
E) Minimizing inventory 
A) Stable workforce, variable work hours 
B) Chase 
C) Level 
D) Meeting demand 
E) Minimizing inventory B

Question 4

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

Accepted Answer

A) Demand can be segmented by customer 
B) The product can be sold in advance 
C) The product can be kept to be sold when demand is stronger 
D) Fixed costs are high and variable costs are low 
E) Demand is highly variable 
A) Demand can be segmented by customer 
B) The product can be sold in advance 
C) The product can be kept to be sold when demand is stronger 
D) Fixed costs are high and variable costs are low 
E) Demand is highly variable

Question 5

A rate fence is a logical justification for different prices for what is essentially the same service.

Accepted Answer

A) True 
 B)False

Question 6

The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.

Accepted Answer

A) True 
 B)False

Question 7

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) Inventory levels and market demand 
B) Raw material availability and competitor's behavior 
C) Current workforce and economic conditions 
D) Current physical capacity and market demand 
E) Subcontractor capacity and inventory levels 
A) Inventory levels and market demand 
B) Raw material availability and competitor's behavior 
C) Current workforce and economic conditions 
D) Current physical capacity and market demand 
E) Subcontractor capacity and inventory levels

Question 9

The master production schedule is a crucial input into the aggregate operations plan.

Accepted Answer

A) True 
 B)False

Question 10

Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.

Accepted Answer

A) True 
 B)False

Question 11

Costs incurred in hiring, training and laying off personnel are considered relevant aggregate operations planning costs.

Accepted Answer

A) True 
 B)False

Question 12

In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning?

Accepted Answer

A) Process planning 
B) Workforce scheduling 
C) Master production scheduling 
D) Materials requirements planning 
E) Order scheduling 
A) Process planning 
B) Workforce scheduling 
C) Master production scheduling 
D) Materials requirements planning 
E) Order scheduling

Question 13

Which of the following costs are relevant to aggregate operations planning?

Accepted Answer

A) Sunk costs 
B) Transaction costs 
C) Backordering costs 
D) Legal costs 
E) Fixed costs 
A) Sunk costs 
B) Transaction costs 
C) Backordering costs 
D) Legal costs 
E) Fixed costs

Question 14

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

Accepted Answer

A) Workforce levels and inventory on hand 
B) Inventory on hand and financing costs for that inventory 
C) The strategic plan and the products available for sale 
D) The workforce level and the degree of automation 
E) Operational costs and the cash flow to support operations 
A) Workforce levels and inventory on hand 
B) Inventory on hand and financing costs for that inventory 
C) The strategic plan and the products available for sale 
D) The workforce level and the degree of automation 
E) Operational costs and the cash flow to support operations

Question 15

An advantage of level scheduling is which of the following?

Accepted Answer

A) Purchased items from vendors can be delivered when and where needed 
B) High level of scheduling allows for workers to have lots of overtime 
C) System can better accommodate unexpected large orders 
D) Financial requirements are minimized through lower finished goods inventory 
E) It is easier to apply linear programming or simulation 
A) Purchased items from vendors can be delivered when and where needed 
B) High level of scheduling allows for workers to have lots of overtime 
C) System can better accommodate unexpected large orders 
D) Financial requirements are minimized through lower finished goods inventory 
E) It is easier to apply linear programming or simulation

Question 16

The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for the intermediate term of 3 to 18 months.

Accepted Answer

A) True 
 B)False

Question 17

Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.

Accepted Answer

A) True 
 B)False

Question 18

Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) Variable workforce, stable work hours 
B) Lag demand 
C) Level playing field 
D) Stable workforce, variable work hours 
E) Product warehouse 
A) Variable workforce, stable work hours 
B) Lag demand 
C) Level playing field 
D) Stable workforce, variable work hours 
E) Product warehouse

Question 20

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

Accepted Answer

A) Demand cannot be segmented by customer 
B) Inventory is perishable 
C) Fixed costs are low and variable costs are high 
D) The customer is a "captive" of the system 
E) The firm doing yield management is very profitable 
A) Demand cannot be segmented by customer 
B) Inventory is perishable 
C) Fixed costs are low and variable costs are high 
D) The customer is a "captive" of the system 
E) The firm doing yield management is very profitable

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

Which of the following is not one of the "number of interesting issues that arise in yield management?"

Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?

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

A rate fence is a logical justification for different prices for what is essentially the same service.

The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.

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

The master production schedule is a crucial input into the aggregate operations plan.

Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.

Costs incurred in hiring, training and laying off personnel are considered relevant aggregate operations planning costs.

In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning?

Which of the following costs are relevant to aggregate operations planning?

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

An advantage of level scheduling is which of the following?

The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for the intermediate term of 3 to 18 months.

Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.

Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.

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

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

Operations and Supply Chain Management

Strategy and Sustainability

Product and Service Design

Strategic Capacity Management

Process Analysis

Production Processes

Service Processes

Health Care Processes

Six-Sigma Quality

Projects

Global Sourcing and Procurement

Location, Logistics and Distribution

Lean and Sustainable Supply Chains

Enterprise Resource Planning Systems

Demand Management and Forecasting

Inventory Control

Material Requirements Planning

Scheduling

Constraint Management

Filters

Exam 16: Sales and Operations Planning

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

Which of the following is not one of the "number of interesting issues that arise in yield management?"

Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?

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

A rate fence is a logical justification for different prices for what is essentially the same service.

The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.

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

The master production schedule is a crucial input into the aggregate operations plan.

Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.

Costs incurred in hiring, training and laying off personnel are considered relevant aggregate operations planning costs.

In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning?

Which of the following costs are relevant to aggregate operations planning?

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

An advantage of level scheduling is which of the following?

The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for the intermediate term of 3 to 18 months.

Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.

Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.

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

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

Operations and Supply Chain Management

Strategy and Sustainability

Product and Service Design

Strategic Capacity Management

Process Analysis

Production Processes

Service Processes

Health Care Processes

Six-Sigma Quality

Projects

Global Sourcing and Procurement

Location, Logistics and Distribution

Lean and Sustainable Supply Chains

Enterprise Resource Planning Systems

Demand Management and Forecasting

Inventory Control

Material Requirements Planning

Scheduling

Constraint Management

Filters