Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

Sales and operations planning is a business process that helps the firm plan and coordinate operations and supply chain decisions over a tactical time horizon.The objective of this is to agree on a single operating plan that allocates critical resources of people,capacity,materials,time and money to most effectively meet the marketplace in a profitable way.
Strategic decisions are made on a long-term basis,much longer than S&OP can be done practically,however the process choice and market decisions made at this level will shape the firm's ability to generate and to meet demand.The tactical level,usually four months to a year out,is where workforce,inventory,subcontracting and logistics decisions are made.Planning numbers are aggregated month by month for the purpose of generating a sales and operations plan.Finally,the time period for the detailed planning and control level may be as short as hours or as long as weeks ahead.The planning done at this level may be as simplistic as which job to run next with the capacity that was provided by the tactical level planning.

Question 3

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.

Accepted Answer

A) True 
 B)False  True

Question 4

Regular production costs $25 per unit and selling a unit represents a cash inflow of $30 per unit.Assume that all units reflected on the forecast will be sold.What is the cumulative net cash flow at the end of April?

Accepted Answer

The cumulative net cash flow a

Question 5

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?

Accepted Answer

The total demand forecast for the planni

Question 6

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.

Accepted Answer

The answer of In order for ________ planning to work,the...

Question 7

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.

Accepted Answer

The answer of An organization that meets seasonal swings in...

Question 8

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

Accepted Answer

The answer of A(n)________ limits our ability to increase profits...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

It costs $12 to make a single unit using regular production and $15 to make a single unit using overtime production.Total overtime production is limited to 500 units for the five month period.The manufacturing plant has a regular production capacity of 250 units per month and 50 units in inventory at the start of the planning period.There is a $5 per unit charge for holding inventory at the end of each month and a limit of 250 units ending inventory for any period.Develop a minimum cost production plan if the forecast must be met and costs must be minimized.

Accepted Answer

The minimum cost pro

Question 11

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?

Accepted Answer

A)  $6,800 
B)  $7,050 
C)  $7,300 
D)  $7,550 
A)  $6,800 
B)  $7,050 
C)  $7,300 
D)  $7,550

Question 12

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.

Accepted Answer

A)  150 units 
B)  125 units 
C)  100 units 
D)  75 units 
A)  150 units 
B)  125 units 
C)  100 units 
D)  75 units

Question 13

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

Accepted Answer

A)  how their plan will impact supply chain partners. 
B)  what the cash flows are like. 
C)  how flexible the plan is. 
D)  All of these are useful criteria for a sales and operation plan. 
A)  how their plan will impact supply chain partners. 
B)  what the cash flows are like. 
C)  how flexible the plan is. 
D)  All of these are useful criteria for a sales and operation plan.

Question 14

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

Accepted Answer

rolling pl

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

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 ________.

Accepted Answer

developing

Question 17

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?

Accepted Answer

A)  The objective function should limit overtime to less than 8 hours per week. 
B)  The objective function should maximize the amount of rocket widgets produced. 
C)  The objective function should be to minimize costs. 
D)  None of these statements will help plan production using optimization modeling. 
A)  The objective function should limit overtime to less than 8 hours per week. 
B)  The objective function should maximize the amount of rocket widgets produced. 
C)  The objective function should be to minimize costs. 
D)  None of these statements will help plan production using optimization modeling.

Question 18

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

Accepted Answer

Firms can link S&OP with their supply ch

Question 19

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:

Accepted Answer

A)  a tiered workforce. 
B)  offloading. 
C)  labor management. 
D)  yield management. 
A)  a tiered workforce. 
B)  offloading. 
C)  labor management. 
D)  yield management.

Question 20

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.

Accepted Answer

A) True 
 B)False

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

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

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.

Regular production costs $25 per unit and selling a unit represents a cash inflow of $30 per unit.Assume that all units reflected on the forecast will be sold.What is the cumulative net cash flow at the end of April?

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.

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.

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

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

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.

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

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

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.

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 ________.

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

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.

Introduction to Operations and Supply Chain Management

Operations and Supply Chain Strategies

Process Choice and Layout Decisions in Manufacturing and Services

Business Processes

Managing Quality

Managing Capacity

A: Advanced Waiting Line Theory and Simulation Modeling

Supply Management

Logistics

Forecasting

Managing Inventory Throughout the Supply Chain

Managing Production Across the Supply Chain

A: Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters

Exam 10: Sales and Operations Planning Aggregate Planning

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

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

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.

Regular production costs $25 per unit and selling a unit represents a cash inflow of $30 per unit.Assume that all units reflected on the forecast will be sold.What is the cumulative net cash flow at the end of April?

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.

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.

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

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

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.

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

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

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.

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 ________.

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

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.

Introduction to Operations and Supply Chain Management

Operations and Supply Chain Strategies

Process Choice and Layout Decisions in Manufacturing and Services

Business Processes

Managing Quality

Managing Capacity

A: Advanced Waiting Line Theory and Simulation Modeling

Supply Management

Logistics

Forecasting

Managing Inventory Throughout the Supply Chain

Managing Production Across the Supply Chain

A: Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters