Question 1

Generally speaking, the sales function and operations function differ in objectives.Which of the following is NOT one of those differences?

Accepted Answer

A) Sales prefers detailed forecasts for setting bonuses, operations prefers aggregate forecasts. 
B) Sales prefers many product variations, operations prefers few variations. 
C) Sales emphasizes revenue, operations emphasizes cost minimization. 
D) Sales prefers rapid response, operations prefers stable production schedules. 
A) Sales prefers detailed forecasts for setting bonuses, operations prefers aggregate forecasts. 
B) Sales prefers many product variations, operations prefers few variations. 
C) Sales emphasizes revenue, operations emphasizes cost minimization. 
D) Sales prefers rapid response, operations prefers stable production schedules.

Question 2

Zanda Corp.and Jones Corp.are identical in every way (products produced, costs, demand, etc.) except for one.Zanda uses a level production plan while Jones prefers a chase production plan.Which of the following is most likely to be true?

Accepted Answer

A) Zanda will have higher investment in plant and equipment. 
B) Zanda will have higher hiring and firing costs. 
C) Zanda will have higher inventory carrying costs. 
D) Zanda will have lower total production costs. 
A) Zanda will have higher investment in plant and equipment. 
B) Zanda will have higher hiring and firing costs. 
C) Zanda will have higher inventory carrying costs. 
D) Zanda will have lower total production costs.

Question 3

Decisions being made about the aggregate production plans represent what type of planning?

Accepted Answer

A) Strategic level planning 
B) Tactical planning 
C) Detailed operational planning 
D) Long-term planning 
A) Strategic level planning 
B) Tactical planning 
C) Detailed operational planning 
D) Long-term planning

Question 4

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters.The company's expected quarterly demand is given in the following chart.The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter.Following is other critical data: Production cost per unit = $250
Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000
Firing cost per worker = $2,000 Beginning number of workers = 10
Each worker can produce 100 units per quarter.
Any worker on the staff at the end of the year will not be fired at that time.
  If Jones prefers a level plan, what will be the regular production rate per quarter?

Accepted Answer

A) 5,000 units 
B) 4,000 units 
C) 6,000 units 
D) Regular production will vary each month. 
A) 5,000 units 
B) 4,000 units 
C) 6,000 units 
D) Regular production will vary each month.

Question 5

John Jones, senior VP for Zanda Corp., is looking at three alternative aggregate production plans for the next six-month period.At his company, demand varies by month with substantial month-to-month differences.The three alternatives are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan.He is most likely to find that the pure level plan:

Accepted Answer

A) Has lower inventory carrying cost than the hybrid plan. 
B) Has higher hiring/layoff cost than the chase plan. 
C) Has higher hiring/layoff cost than the hybrid plan. 
D) Has higher inventory carrying cost than the chase plan. 
A) Has lower inventory carrying cost than the hybrid plan. 
B) Has higher hiring/layoff cost than the chase plan. 
C) Has higher hiring/layoff cost than the hybrid plan. 
D) Has higher inventory carrying cost than the chase plan.

Question 6

Each month the sales and operations team at Johnson Company meets to develop plans for each of the next six months.This process is known as:

Accepted Answer

A) Collaborative planning and forecasting. 
B) Rolling planning horizons. 
C) Unconstrained planning. 
D) Continuous planning. 
A) Collaborative planning and forecasting. 
B) Rolling planning horizons. 
C) Unconstrained planning. 
D) Continuous planning.

Question 7

Which of the following is an advantage of a chase production strategy (as compared to a level plan)?

Accepted Answer

A) Low investment in equipment. 
B) High inventory carrying cost. 
C) Lower inventory investment. 
D) Less investment in employee training. 
A) Low investment in equipment. 
B) High inventory carrying cost. 
C) Lower inventory investment. 
D) Less investment in employee training.

Question 8

You are sitting next to a person in business class on a flight from Los Angeles to Sydney, Australia.You mention to that person that you got your ticket two months ago for only $12,500.The person responds that she bought her ticket two days ago for $7,800.This sometimes happens because airlines often use an approach called:

Accepted Answer

A) Capacity management. 
B) Yield management. 
C) Load management. 
D) Workforce leveling. 
A) Capacity management. 
B) Yield management. 
C) Load management. 
D) Workforce leveling.

Question 9

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months.The company's expected monthly demand is given in the following chart.The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month.Following is other critical data: Production cost per unit = $50
Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300
Firing cost per worker = $200 Beginning number of workers = 16
Each worker can produce = 50 units per month.CHASE PLAN
  What is the inventory carrying cost of a chase plan accomplished through hiring and firing?

Accepted Answer

A) 0 
B) $200 
C) $1,000 
D) $2,000 
A) 0 
B) $200 
C) $1,000 
D) $2,000

Question 10

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months.The company's expected monthly demand is given in the following chart.The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month.Following is other critical data: Production cost per unit = $50
Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300
Firing cost per worker = $200 Beginning number of workers = 16
Each worker can produce = 50 units per month.CHASE PLAN
  What is the total cost of a chase plan which uses only hiring/firing?

Accepted Answer

A) $257,000 
B) $257,400 
C) $257,600 
D) $257,900 
A) $257,000 
B) $257,400 
C) $257,600 
D) $257,900

Question 11

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months.The company's expected monthly demand is given in the following chart.The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month.Following is other critical data: Production cost per unit = $50
Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300
Firing cost per worker = $200 Beginning number of workers = 16
Each worker can produce = 50 units per month.LEVEL PLAN
  What is the total cost of the level plan?

Accepted Answer

A) $250,000 
B) $260,700 
C) $252,700 
D) $258,000 
A) $250,000 
B) $260,700 
C) $252,700 
D) $258,000

Question 12

If a make-to-stock manufacturing firm with highly seasonal demand follows a level production strategy, which of the following is likely to be true?

Accepted Answer

A) Inventory will fluctuate significantly during the year. 
B) The production rate must be set equal to the demand in the heaviest demand period, and stay at that level all year. 
C) It will be difficult to keep the workforce size stable. 
D) The firm must make sure that its maximum capacity is at least as high as the heaviest demand period. 
A) Inventory will fluctuate significantly during the year. 
B) The production rate must be set equal to the demand in the heaviest demand period, and stay at that level all year. 
C) It will be difficult to keep the workforce size stable. 
D) The firm must make sure that its maximum capacity is at least as high as the heaviest demand period.

Question 13

Which type of aggregate production plan is likely to have the LEAST negative impact on the local community and the workforce?

Accepted Answer

A) Chase plan with hiring and firing 
B) Chase plan with overtime 
C) Level plan 
D) The plans do not differ in their impact on the local community and the workforce. 
A) Chase plan with hiring and firing 
B) Chase plan with overtime 
C) Level plan 
D) The plans do not differ in their impact on the local community and the workforce.

Question 14

How does aggregate planning for services differ from aggregate production planning for products?

Accepted Answer

A) There is no difference. 
B) Demand for products typically is stated as the number of hours of labor required, whereas demand for services is generally stated as the number of units of service desired. 
C) Most service plans are based primarily on labor requirements. 
D) Service plans make extensive use of inventory to meet demand. 
A) There is no difference. 
B) Demand for products typically is stated as the number of hours of labor required, whereas demand for services is generally stated as the number of units of service desired. 
C) Most service plans are based primarily on labor requirements. 
D) Service plans make extensive use of inventory to meet demand.

Generally speaking, the sales function and operations function differ in objectives.Which of the following is NOT one of those differences?

Zanda Corp.and Jones Corp.are identical in every way (products produced, costs, demand, etc.) except for one.Zanda uses a level production plan while Jones prefers a chase production plan.Which of the following is most likely to be true?

Decisions being made about the aggregate production plans represent what type of planning?

Each month the sales and operations team at Johnson Company meets to develop plans for each of the next six months.This process is known as:

Which of the following is an advantage of a chase production strategy (as compared to a level plan)?

If a make-to-stock manufacturing firm with highly seasonal demand follows a level production strategy, which of the following is likely to be true?

Which type of aggregate production plan is likely to have the LEAST negative impact on the local community and the workforce?

How does aggregate planning for services differ from aggregate production planning for products?

Introduction to Managing Operations Across the Supply Chain

Operations and Supply Chain Strategy

Managing Processes and Capacity

Product Process Innovation

Manufacturing and Service Process Structures

Managing Quality

Managing Inventories

Lean Systems

Customer Service Management

Sourcing and Supply Management

Logistics Management

Sales and Operations Planning

Materials and Resource Requirements Planning

Project Management

Sustainable Operations Management preparing for the Future

Process Mapping and Analysis

Quality Improvement Tools

Advanced Methods for Project Scheduling

Filters

Exam 12: Demand Planning: Forecasting and Demand Management

Generally speaking, the sales function and operations function differ in objectives.Which of the following is NOT one of those differences?

Zanda Corp.and Jones Corp.are identical in every way (products produced, costs, demand, etc.) except for one.Zanda uses a level production plan while Jones prefers a chase production plan.Which of the following is most likely to be true?

Decisions being made about the aggregate production plans represent what type of planning?

Each month the sales and operations team at Johnson Company meets to develop plans for each of the next six months.This process is known as:

Which of the following is an advantage of a chase production strategy (as compared to a level plan)?

If a make-to-stock manufacturing firm with highly seasonal demand follows a level production strategy, which of the following is likely to be true?

Which type of aggregate production plan is likely to have the LEAST negative impact on the local community and the workforce?

How does aggregate planning for services differ from aggregate production planning for products?

Introduction to Managing Operations Across the Supply Chain

Operations and Supply Chain Strategy

Managing Processes and Capacity

Product Process Innovation

Manufacturing and Service Process Structures

Managing Quality

Managing Inventories

Lean Systems

Customer Service Management

Sourcing and Supply Management

Logistics Management

Sales and Operations Planning

Materials and Resource Requirements Planning

Project Management

Sustainable Operations Management preparing for the Future

Process Mapping and Analysis

Quality Improvement Tools

Advanced Methods for Project Scheduling

Filters