Question 1

Foregone profit margins are considered as relevant aggregate operations planning costs.

Accepted Answer

A) True 
 B)False

Question 2

The sales and operations planning process consists of a series of meetings.

Accepted Answer

A) True 
 B)False

Question 3

The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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) Demand is highly variable 
D) Fixed costs are high and variable costs are low 
E) Demand is stable and close to capacity 
A) Demand can be segmented by customer 
B) The product can be sold in advance 
C) Demand is highly variable 
D) Fixed costs are high and variable costs are low 
E) Demand is stable and close to capacity

Question 7

The aggregate operations plan should not be updated but should be followed precisely until the planning horizon has passed.

Accepted Answer

A) True 
 B)False

Question 8

Aggregate sales and operations planning occur in a company about every 3 to 18 months.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following methods discussed in the text requires generating several alternative aggregate plans?

Accepted Answer

A) Trial and error 
B) Production smoothing 
C) Graphing and charting 
D) Aggregate plan simulation 
E) Cut and try 
A) Trial and error 
B) Production smoothing 
C) Graphing and charting 
D) Aggregate plan simulation 
E) Cut and try

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.

Accepted Answer

A) True 
 B)False

Question 12

The essence of yield management is the ability to manage supply.

Accepted Answer

A) True 
 B)False

Question 13

Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain.

Accepted Answer

A) True 
 B)False

Question 14

A rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

In a services organization strategic capacity planning follows process planning.

Accepted Answer

A) True 
 B)False

Question 20

In a logistics organization vehicle dispatching immediately precedes vehicle loading.

Accepted Answer

A) True 
 B)False

Foregone profit margins are considered as relevant aggregate operations planning costs.

The sales and operations planning process consists of a series of meetings.

The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.

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.

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

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

The aggregate operations plan should not be updated but should be followed precisely until the planning horizon has passed.

Aggregate sales and operations planning occur in a company about every 3 to 18 months.

Which of the following methods discussed in the text requires generating several alternative aggregate plans?

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

Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.

The essence of yield management is the ability to manage supply.

Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain.

A rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.

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

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.

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

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

In a services organization strategic capacity planning follows process planning.

In a logistics organization vehicle dispatching immediately precedes vehicle loading.

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

Foregone profit margins are considered as relevant aggregate operations planning costs.

The sales and operations planning process consists of a series of meetings.

The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.

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.

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

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

The aggregate operations plan should not be updated but should be followed precisely until the planning horizon has passed.

Aggregate sales and operations planning occur in a company about every 3 to 18 months.

Which of the following methods discussed in the text requires generating several alternative aggregate plans?

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

Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.

The essence of yield management is the ability to manage supply.

Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain.

A rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.

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

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.

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

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

In a services organization strategic capacity planning follows process planning.

In a logistics organization vehicle dispatching immediately precedes vehicle loading.

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