Exam 11: Sales and Operations Planning Aggregate Planning

Each entity in a supply chain should produce its own sales and operations plan independent of the other members in order to improve the overall cost performance in a supply chain.

The standard equation used by Gigi Enterprises for production planning is Production = Demand.The sales and operations planner is probably using:

Sales and operations planning must consider:

There are three phases to sales and operations planning implementation.The first phase,during which employees are trained,information systems implemented,and ideal products are identified for initial efforts is called ________.

Net cash flow is the difference between the value added and the cash on hand at the end of the period.

What are the possibilities for matching capacity to sales and vice versa when doing S&OP in a service environment?

A sales and operations plan that varies both production and inventory levels is called a(n)________ production plan.

There are few,if any,options for adjusting capacity levels for managers involved in:

A company that makes the rocket widget has one machine capable of producing this unique item.The machine requires an attendant,who works 40 hours a week for $12 per hour and has made himself available for a maximum of 8 hours of overtime.It costs $20 per hour to run the machine and it is capable of producing 10,000 rocket widgets per hour.The widgets sell for $10 per hundred and cost $1 per hundred in materials.If the production manager wishes to develop a sales and operations plans using an optimization model,which of the following statements is valid?

A(n)________ limits our ability to increase profits or cut costs by reducing the set of possible solutions in an optimization model.

Last month a firm made 100 model A's using all of their available labor.If they have already taken orders for 150 model A's for next month,then their planning value must be 1.5.

It costs $10 to make a single unit using regular production and $15 to make a single unit using overtime production.Finished units sell for $17 and are built to order.The manufacturing plant has a regular production capacity of 250 units per month and no inventory at the start of the planning period.What is the BEST net cash flow for the entire planning period if the manufacturer uses a chase plan?

Willow Trees Inc.makes seven different products,four of which are within their first year of existence.The demands for all products,especially the newest ones,are not well known.The newest products are intended to complement their existing products and take different materials,different processes,and an entirely different set of labor skills for production.Which of these statements regarding their likely sales and operations planning activities is BEST?

A production planner can confirm future capacity requirements based on released or planned orders by glancing at a(n)________.

A routine flight from LaGuardia Airport to Will Rogers Airport may have passengers that have paid radically different ticket prices.These prices fluctuate based on an approach called yield management.

In order for ________ planning to work,the mix of products or services must be essentially the same from one time period to the next or the products must have very similar resource requirements.

What is the ending inventory level for April in the production plan shown in the table? All entries in the table are in terms of sales units.

Last month,the sales and operations plan showed projections from January through April.This month,the sales and operations plan shows projections from February through May.This is an example of a rolling planning horizon.

An organization with twenty people developing sales and operations plans might receive twenty different proposals.What are some factors an organization might consider when deciding among these alternative plans? Provide a ranking for your factors and support your ranking with examples from recent business news media.

Sales and operations planning is a necessary task for all companies,but is never a source of competitive advantage.