Question 1

Adjusting capacity and managing demand are two economic strategies for meeting demand.

Accepted Answer

A) True 
 B)False

Question 2

A formulation for a linear programming model consists of a decision variable, a constraint, and several objective functions.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

What is aggregate planning and what alternatives are generally feasible when developing the aggregate production plans?

Accepted Answer

Aggregate planning determines the resour

Question 5

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

Accepted Answer

A)  60,000 units. 
B)  42,500 units. 
C)  35,000 units. 
D)  25,000 units. 
A)  60,000 units. 
B)  42,500 units. 
C)  35,000 units. 
D)  25,000 units.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Provide an overview of the sales and operations planning (S&OP) process.

Accepted Answer

Sales and operations planning (S&OP) is

Question 8

In capacity planning, the feasibility of the sales and operations production plan is verified by a

Accepted Answer

A)  resource requirements plan. 
B)  rough-cut capacity plan. 
C)  capacity requirements plan. 
D)  master production schedule. 
A)  resource requirements plan. 
B)  rough-cut capacity plan. 
C)  capacity requirements plan. 
D)  master production schedule.

Question 9

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

Accepted Answer

A)  400 
B)  150 
C)  50 
D)  0 
A)  400 
B)  150 
C)  50 
D)  0

Question 10

A company produces product A and product B. Each product must go through two processes. Each A produced requires two hours in process 1 and five hours in process 2. Each B produced requires six hours in process 1 and three hours in process 2. There are 80 hours of capacity available each week in each process. Each A produced generates $6.00 in profit for the company. Each B produced generates $9.00 in profit for the company. If the company produces 6 units of A and 9 units of B the capacity constraint for Process 2 is

Accepted Answer

A)  5A + 3B ≥ 80. 
B)  6A + 3 B ≤ 80. 
C)  5A + 3B ≤ 80. 
D)  5A + 3B < 80. 
A)  5A + 3B ≥ 80. 
B)  6A + 3 B ≤ 80. 
C)  5A + 3B ≤ 80. 
D)  5A + 3B < 80.

Question 11

The most effective aggregate planning strategy depends on

Accepted Answer

A)  the demand distribution. 
B)  the competitive position. 
C)  the firm's cost structure. 
D)  all of the above. 
A)  the demand distribution. 
B)  the competitive position. 
C)  the firm's cost structure. 
D)  all of the above.

Question 12

Operations managers find very few types of linear program models applicable today because finding an optimal solution is no longer a concern.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  42,500. 
B)  85,000. 
C)  62,500. 
D)  37,500. 
A)  42,500. 
B)  85,000. 
C)  62,500. 
D)  37,500.

Question 14

The process of breaking an aggregate plan into more detailed plans is referred to as

Accepted Answer

A)  collaborative planning. 
B)  hierarchical planning. 
C)  disaggregation. 
D)  rough-cut planning. 
A)  collaborative planning. 
B)  hierarchical planning. 
C)  disaggregation. 
D)  rough-cut planning.

Question 15

The search decision rule (SDR) is an algorithm that

Accepted Answer

A)  solves a set of four quadratic equations. 
B)  finds the minimum cost for combinations of different workforce levels and production rates. 
C)  uses regression analysis to improve the consistency of production planning decisions. 
D)  requires that a linear cost function be used. 
A)  solves a set of four quadratic equations. 
B)  finds the minimum cost for combinations of different workforce levels and production rates. 
C)  uses regression analysis to improve the consistency of production planning decisions. 
D)  requires that a linear cost function be used.

Question 16

Sales and operations planning is used primarily for which of the following planning horizons?

Accepted Answer

A)  short-term 
B)  intermediate 
C)  long-term 
D)  indefinite 
A)  short-term 
B)  intermediate 
C)  long-term 
D)  indefinite

Question 17

An optimizing technique originally developed for aggregate planning in a paint factory is the

Accepted Answer

A)  linear decision rule. 
B)  search decision rule. 
C)  management coefficients model. 
D)  transportation technique. 
A)  linear decision rule. 
B)  search decision rule. 
C)  management coefficients model. 
D)  transportation technique.

Question 18

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 chase demand strategy is used then the number of workers hired in quarter 4 is

Accepted Answer

A)  0. 
B)  15. 
C)  75. 
D)  125. 
A)  0. 
B)  15. 
C)  75. 
D)  125.

Question 19

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

Accepted Answer

A)  500 
B)  100 
C)  200 
D)  350 
A)  500 
B)  100 
C)  200 
D)  350

Question 20

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

Accepted Answer

A)  75,000. 
B)  87,350. 
C)  93,750. 
D)  125,000. 
A)  75,000. 
B)  87,350. 
C)  93,750. 
D)  125,000.

Adjusting capacity and managing demand are two economic strategies for meeting demand.

A formulation for a linear programming model consists of a decision variable, a constraint, and several objective functions.

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

What is aggregate planning and what alternatives are generally feasible when developing the aggregate production plans?

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

Provide an overview of the sales and operations planning (S&OP) process.

In capacity planning, the feasibility of the sales and operations production plan is verified by a

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

The most effective aggregate planning strategy depends on

Operations managers find very few types of linear program models applicable today because finding an optimal solution is no longer a concern.

The process of breaking an aggregate plan into more detailed plans is referred to as

The search decision rule (SDR) is an algorithm that

Sales and operations planning is used primarily for which of the following planning horizons?

An optimizing technique originally developed for aggregate planning in a paint factory is the

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

Introduction to Operations and Supply Chain Management

Quality Management

Statistical Process Control

Product Design

Service Design

Processes and Technology

Capacity and Facilities Design

Human Resources

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Resource Planning

Lean Systems

Scheduling

Filters

Exam 14: Sales and Operations Planning

Adjusting capacity and managing demand are two economic strategies for meeting demand.

A formulation for a linear programming model consists of a decision variable, a constraint, and several objective functions.

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

What is aggregate planning and what alternatives are generally feasible when developing the aggregate production plans?

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

Provide an overview of the sales and operations planning (S&OP) process.

In capacity planning, the feasibility of the sales and operations production plan is verified by a

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

The most effective aggregate planning strategy depends on

Operations managers find very few types of linear program models applicable today because finding an optimal solution is no longer a concern.

The process of breaking an aggregate plan into more detailed plans is referred to as

The search decision rule (SDR) is an algorithm that

Sales and operations planning is used primarily for which of the following planning horizons?

An optimizing technique originally developed for aggregate planning in a paint factory is the

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

Introduction to Operations and Supply Chain Management

Quality Management

Statistical Process Control

Product Design

Service Design

Processes and Technology

Capacity and Facilities Design

Human Resources

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Resource Planning

Lean Systems

Scheduling

Filters