Question 1

Which of the following assumptions is FALSE regarding the application of the trial-and-error approach to developing a sales and operations plan?

Accepted Answer

A) Unit costs are independent of the quantity produced. 
B) Cost is a nonlinear function of unit cost and the number of units. 
C) When allowed,backlogs are assumed to exist for the entire period. 
D) Production occurs at a uniform rate throughout each period. 
A) Unit costs are independent of the quantity produced. 
B) Cost is a nonlinear function of unit cost and the number of units. 
C) When allowed,backlogs are assumed to exist for the entire period. 
D) Production occurs at a uniform rate throughout each period.

Question 2

Which of the following is FALSE about the functionalities of the supply planning team?

Accepted Answer

A) evaluation of both past and future capacity utilization 
B) development of a procurement plan 
C) identification of capacity constraints and alternatives to overcome them 
D) resolution of imbalances between expected demand and available capacity in a reactive way 
A) evaluation of both past and future capacity utilization 
B) development of a procurement plan 
C) identification of capacity constraints and alternatives to overcome them 
D) resolution of imbalances between expected demand and available capacity in a reactive way

Question 3

Which phase of the SCOP process focuses on identifying new sources of revenue that can result from reducing carbon emissions?

Accepted Answer

A) new product development 
B) demand planning 
C) impact on existing products 
D) operations planning 
A) new product development 
B) demand planning 
C) impact on existing products 
D) operations planning

Question 4

The final output of the ______ is a recommendation to senior management on a sales and operations plan that include both the trade-offs and the financial and nonfinancial implications of the plan.

Accepted Answer

A) revenue planning 
B) pre-S&OP meeting 
C) executive S&OP meeting 
D) top-down planning 
A) revenue planning 
B) pre-S&OP meeting 
C) executive S&OP meeting 
D) top-down planning

Question 5

In the sales and operations planning process,the options to influence demand adopt a ______ approach to match supply with demand.

Accepted Answer

A) reactive 
B) proactive 
C) passive 
D) responsive 
A) reactive 
B) proactive 
C) passive 
D) responsive

Question 6

Which of the following is NOT a benefit of SCOP?

Accepted Answer

A) It will drive away existing customers. 
B) It will attract new customers. 
C) It will reduce the risks and costs associated with scarcity of raw materials. 
D) It will increase quality and innovation. 
A) It will drive away existing customers. 
B) It will attract new customers. 
C) It will reduce the risks and costs associated with scarcity of raw materials. 
D) It will increase quality and innovation.

Question 7

Average inventory level at the end of each period is given by ______.

Accepted Answer

A) Average inventory = (Beginning inventory + Ending inventory)/ 2 
B) Average inventory = (Beginning inventory + Ending inventory)* 2 
C) Average inventory = (Beginning inventory - Ending inventory)/ 2 
D) Average inventory = (Beginning inventory - Ending inventory)* 2 
A) Average inventory = (Beginning inventory + Ending inventory)/ 2 
B) Average inventory = (Beginning inventory + Ending inventory)* 2 
C) Average inventory = (Beginning inventory - Ending inventory)/ 2 
D) Average inventory = (Beginning inventory - Ending inventory)* 2

Question 8

Which of the following is NOT an outcome of an effective global sales and operations plan?

Accepted Answer

A) reduced inventory 
B) improved customer relationship 
C) increased expedited costs 
D) increased forecast accuracy 
A) reduced inventory 
B) improved customer relationship 
C) increased expedited costs 
D) increased forecast accuracy

Question 9

There are ______ stages in the process of developing a sales and operations planning (S&OP)plan.

Accepted Answer

A) four 
B) five 
C) six 
D) seven 
A) four 
B) five 
C) six 
D) seven

Question 10

______ deals with evaluating the financial feasibility of the demand and supply plans developed in the previous stages of S&OP planning in terms of ROA,profits,revenue,and working capital investments.

Accepted Answer

A) ROA planning 
B) Investments planning 
C) Financial planning 
D) Revenue planning 
A) ROA planning 
B) Investments planning 
C) Financial planning 
D) Revenue planning

Question 11

The final output of demand planning stage is a ______ that has the agreement of all the stakeholders of the S&OP process.

Accepted Answer

A) single supply plan 
B) single demand plan 
C) multiple demand plans 
D) multiple supply plans 
A) single supply plan 
B) single demand plan 
C) multiple demand plans 
D) multiple supply plans

Question 12

Which of the following is a disadvantage of the chase strategy of sales and operations planning?

Accepted Answer

A) minimization of inventory holding costs 
B) flexibility in the use of capacity 
C) reduced obsolescence and shrinkage 
D) higher costs of hiring,training,and laying-off employees 
A) minimization of inventory holding costs 
B) flexibility in the use of capacity 
C) reduced obsolescence and shrinkage 
D) higher costs of hiring,training,and laying-off employees

Question 13

Consider the estimated aggregate demand for a company's ski product line for the upcoming year in the following table.Calculate the total costs for the month of March using the level production strategy.Assume the regular time production cost as $200/pair of skis,and the average monthly inventory holding cost is $20/pair of skis per month. $$\begin{array} { | c | c | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { Demand } \
\text { (in pairs } \
\text { of unit) }
\end{array} & \text { Month } & \begin{array} { c } 
\text { Demand } \
\text { (in pairs } \
\text { of units) }
\end{array} \
\hline \text { J an } & 8,000 & \text { J uly } & 1,000 \
\hline \text { Feb } & 7,000 & \text { Aug } & 1,300 \
\hline \text { Mar } & 5,000 & \text { Sept } & 2,000 \
\hline \text { Apr } & 4,000 & \text { Oct } & 3,000 \
\hline \text { May } & 2,000 & \text { Nov } & 5,700 \
\hline \text { J une } & 2,000 & \text { Dec } & 7,000 \
\hline
\end{array}$$

Accepted Answer

A) $810,000 
B) $900,000 
C) $880,000 
D) $850,000 
A) $810,000 
B) $900,000 
C) $880,000 
D) $850,000

Question 14

Which of the following statements is FALSE about a global sales and operations plan?

Accepted Answer

A) It must be able to reconcile product allocations. 
B) It must include formal communication channels. 
C) It must be managed separately through the respective functions (manufacturing,sales,finance). 
D) It must be able to balance differing stakeholder needs and goals. 
A) It must be able to reconcile product allocations. 
B) It must include formal communication channels. 
C) It must be managed separately through the respective functions (manufacturing,sales,finance). 
D) It must be able to balance differing stakeholder needs and goals.

Question 15

The assumption of linearity is restrictive and not representative of many real-world aggregate planning situations.This statement is a major drawback of ______.

Accepted Answer

A) linear programming 
B) linear decision rule 
C) transportation model 
D) integer programming 
A) linear programming 
B) linear decision rule 
C) transportation model 
D) integer programming

Question 16

SCOP in sustainable sales and operation planning stands for ______.

Accepted Answer

A) sustainable cost operations planning 
B) suitable cost operations planning 
C) sustainable carbon operations planning 
D) sales carbon operations planning 
A) sustainable cost operations planning 
B) suitable cost operations planning 
C) sustainable carbon operations planning 
D) sales carbon operations planning

Question 17

Which of the following is a disadvantage of the level strategy of sales and operations planning?

Accepted Answer

A) lower turnover 
B) workers that tend to be skilled and experienced 
C) higher cost of inventories over periods of slack 
D) lower absenteeism of its employees 
A) lower turnover 
B) workers that tend to be skilled and experienced 
C) higher cost of inventories over periods of slack 
D) lower absenteeism of its employees

Question 18

In which phase of the SCOP process is there an increased emphasis on recycling,reusing,and selling excess inventories?

Accepted Answer

A) supply planning 
B) demand planning 
C) impact on existing products 
D) operations planning 
A) supply planning 
B) demand planning 
C) impact on existing products 
D) operations planning

Question 19

Which of the following techniques is an illustration of the use of options to control capacity to match demand?

Accepted Answer

A) overbooking 
B) adjusting prices to augment demand 
C) annualized hours strategy 
D) using different fare classes to partition demand 
A) overbooking 
B) adjusting prices to augment demand 
C) annualized hours strategy 
D) using different fare classes to partition demand

Exam 20: Sales and Operations Planning

Which of the following assumptions is FALSE regarding the application of the trial-and-error approach to developing a sales and operations plan?

Which of the following is FALSE about the functionalities of the supply planning team?

Which phase of the SCOP process focuses on identifying new sources of revenue that can result from reducing carbon emissions?

The final output of the ______ is a recommendation to senior management on a sales and operations plan that include both the trade-offs and the financial and nonfinancial implications of the plan.

In the sales and operations planning process,the options to influence demand adopt a ______ approach to match supply with demand.

Which of the following is NOT a benefit of SCOP?

Average inventory level at the end of each period is given by ______.

Which of the following is NOT an outcome of an effective global sales and operations plan?

There are ______ stages in the process of developing a sales and operations planning (S&OP)plan.

______ deals with evaluating the financial feasibility of the demand and supply plans developed in the previous stages of S&OP planning in terms of ROA,profits,revenue,and working capital investments.

The final output of demand planning stage is a ______ that has the agreement of all the stakeholders of the S&OP process.

Which of the following is a disadvantage of the chase strategy of sales and operations planning?

Which of the following statements is FALSE about a global sales and operations plan?

The assumption of linearity is restrictive and not representative of many real-world aggregate planning situations.This statement is a major drawback of ______.

SCOP in sustainable sales and operation planning stands for ______.

Which of the following is a disadvantage of the level strategy of sales and operations planning?

In which phase of the SCOP process is there an increased emphasis on recycling,reusing,and selling excess inventories?

Which of the following techniques is an illustration of the use of options to control capacity to match demand?

Introduction to Managing Global Operations and Supply Chains

Operations and Supply Chain Strategies

Project Management

Supplement: Project Management

Product and Service Innovations

Supplement: Reliability

Managing for Quality

Quality Improvement and Control Tools

Capacity Planning

Supply Chain Design and Location Planning

Process Design and Layout Planning

Supplement: Tools for Analyzing, Designing, and Selecting Processes and Layouts

Supplier Management

Logistics Management

Demand Management and Customer Service

Demand Forecasting Methods

Lean Operations and Supply Chains

Inventory Management

Inventory Control Models

Master Scheduling and Material Requirements Planning

Supplement: Capacity Requirements Planning, MRP II, ERP, and DRP

Detailed Scheduling

Linear Programming

The Transportation Models

Waiting Line Models

Simulation

Learning Curves

Decision-Making Tools

Filters