Exam 8: Sales and Operations Planning

The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.

The sales and operations planning process is made up of a variety of analytical techniques which interact to produce short and intermediate term goals.

Accurate medium-range planning increases the likelihood of operating within the limits of a budget.

Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.

Which of the following is considered a "pure" production planning strategy?

Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing.

Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.

Aggregate sales and operations planning occur in a company about every 3 to 18 months.

The aggregate operations plan differs in virtually every aspect in service organizations as contrasted with manufacturing organizations.

Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain.

Costs incurred in hiring,training and laying off personnel are considered relevant aggregate operations planning costs.

What are the five conditions named in the text that support yield management from an operational perspective? 1.____________________________ 2.____________________________ 3.____________________________ 4.____________________________ 5.____________________________

In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

Backordering costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.

The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.

Describe the aggregate sales and operations planning process.

Explain how yield management works and why some companies are able to use it to manage demand patterns?

The aggregate operations planning variable "production rate" refers to the number of units completed per unit of time.

The essence of yield management is the ability to manage supply.

From an operational perspective yield management is least effective under which of the following circumstances?