Exam 11: Sales and Operations Planning Aggregate Planning

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What is the purpose of S&OP and what takes place at the strategic,tactical,and detailed planning and control levels?

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Forty percent of a house painter's business is exterior work and the other sixty percent is interior.The average exterior paint job takes 30 hours of labor and $500 of paint and primer,but the average interior job takes only 6 hours of labor and $80 of paint and primer.If he gets 25 service calls for the coming month and 30 calls for the month after that,which of the following resource requirements is correct?

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Planning numbers are somewhat aggregated (month by month)in:

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Offloading is part of a level strategy employed by services.

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Which of these is NOT an advantage of linking sales and operations planning throughout the supply chain as mentioned in the book?

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Create a minimum cost chase plan for the forecast shown in the table.There is no beginning inventory and regular production capacity is 350 units.Overtime costs $20 extra and is limited to 50 units per month and 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.What is the total plan cost? Create a minimum cost chase plan for the forecast shown in the table.There is no beginning inventory and regular production capacity is 350 units.Overtime costs $20 extra and is limited to 50 units per month and 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.What is the total plan cost?

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Planning values are used in bottom-up planning,but cannot be used in top-down planning.

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Create a level plan with a zero ending inventory for the forecast shown in the table.There is no beginning inventory and regular production capacity is 300 units.Overtime costs $15 extra and is limited to 25 units per month and subcontracting is limited to 60 units per month and costs $10 per unit.Back orders cost $50 per unit and there is a cost of $5 per month to hold a unit in inventory.What is the total plan cost? Create a level plan with a zero ending inventory for the forecast shown in the table.There is no beginning inventory and regular production capacity is 300 units.Overtime costs $15 extra and is limited to 25 units per month and subcontracting is limited to 60 units per month and costs $10 per unit.Back orders cost $50 per unit and there is a cost of $5 per month to hold a unit in inventory.What is the total plan cost?

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A company has a sales forecast for the following five months as shown in the table.If they have a beginning inventory of 100 units,what amount should be produced under a level plan in order for them to have an ending inventory of zero units at the end of the five month period? A company has a sales forecast for the following five months as shown in the table.If they have a beginning inventory of 100 units,what amount should be produced under a level plan in order for them to have an ending inventory of zero units at the end of the five month period?

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Seventy percent of a house painter's business is exterior work and the other thirty percent is interior.The average exterior paint job takes 20 hours of labor and $400 of paint and primer,but the average interior job takes only 6 hours of labor and $75 of paint and primer.If he gets 20 service calls for the coming month,which of the following resource requirements is correct?

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Detailed planning and control is riskier than strategic planning.

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Sales and operations planning indicates how the organization will use its tactical capacity resources to meet expected customer demand.

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Bottom-up planning should be used when the product/service mix is unstable and resource requirements vary greatly across the offerings.

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A(n)________ production plan matches production in each time period with the sales forecast.

(Short Answer)
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This graph of expected sales level and expected output shows: This graph of expected sales level and expected output shows:

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