Exam 11: Sales and Operations Planning Aggregate Planning

Describe the differences between level,chase,and mixed production plans.Use the forecast in the table to show the differences by creating a plan of each type.There is no beginning inventory and regular production capacity is 350 units.Overtime costs $10 extra and is limited to 50 units per month.Subcontracting is limited to 100 units per month and costs $15 per unit.Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory.There is room for only 100 units in inventory.

Tim subtracted his cash outflows for 2011 from his cash inflows for the same period to arrive at his ________.

A home improvement store adds several workers to the garden center in the summer in order to meet the demands of do-it-yourselfers for their dazzling array of plants.Once gardening season is over,both the workers' jobs (and the plants they sold)will perish.The home improvement store is following an offloading strategy.

As potato harvest season approaches,the number of year-round llama wranglers is insufficient to meet the demand,so a few wranglers are hired just for the month it takes to haul the harvest down from the mountains to the anxious potato-festival crowd.This approach to meeting the labor requirements is called:

At the beginning of the semester,you decide to devote 12 hours a week outside of class time to your operations management studies,regardless of scheduled tests,assignments,or project due dates.This is a level plan approach to your favorite course.

The Super Bowl is right around the corner and Gowgem Hotels is aquiver with anticipation.They'd like to price their rooms at their three city locations,next to the stadium,near the airport,and in the suburbs,as high as possible but still achieve 100% occupancy.The approach they should take to this opportunity is:

How can and why should a firm link S&OP throughout the supply chain?

A major retailer has recently deployed self-checkout stands at the front of the store.As long as you don't have items like paint,cold medicine,beer,fruits,or vegetables in your shopping cart,you can check out quickly in one of these lines.This retailer is providing a prime example of:

An organization has developed three alternate sales and operations plans for the coming six months and now must choose between them.They should consider:

Within the context of the planning cycle,the planning that takes place at the highest levels of the firm is called:

An organization that meets seasonal swings in demand by hiring and then laying off temporary workers while maintaining a few full-time permanent workers is employing a(n)________ strategy.

Detailed planning and control offers the greatest ability to adjust capacity.

Describe how both top-down and bottom-up planning work and the situations where one approach is superior to the other.

Sales and operations planning across a supply chain is similar in nature to collaborative planning,forecasting,and replenishment.

When the products and services have very different resource requirements and the mix is unstable from one period to the next,bottom-up planning works best.

The objective function of an optimization modeling approach to S&OP should not allow available labor or equipment time to be exceeded.

Your book describes three phases in the implementation of sales and operations planning in an organization.What are the three phases and what takes place in each?

The alternative production strategies of level,chase,or mixed that are available in top-down planning cannot be used in bottom-up planning.

Sales and operations plans must be updated as time progresses,so most firms establish a(n)________.

A hotel using yield management would ________ prices if demand is higher than expected only if the expected result is ________.