Question 1

Inventory holding costs are an important consideration for the level production strategy.

Accepted Answer

A) True 
 B)False

Question 2

Problems associated with using a part-time workers strategy for adjusting capacity include all of the following except

Accepted Answer

A) high turnover. 
B) accelerated training requirements 
C) scheduling difficulties 
D) high retirement costs 
A) high turnover. 
B) accelerated training requirements 
C) scheduling difficulties 
D) high retirement costs

Question 3

The following information relates to a company's aggregate production planning activities:
 
Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a level production strategy is used then the inventory at the end of quarter 3 is

Accepted Answer

A) 18,750 
B) 12,500 
C) 25,650 
D) 31,250 units 
A) 18,750 
B) 12,500 
C) 25,650 
D) 31,250 units

Question 4

The following information relates to a company's aggregate production planning activities:
 
Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a level production strategy is used then the inventory at the end of quarter 3 is

Accepted Answer

A) 0 
B) 5,000 
C) 10,000 
D) 17,500 
A) 0 
B) 5,000 
C) 10,000 
D) 17,500

Question 5

The difference between planned production and customer orders is known as

Accepted Answer

A) the master production schedule. 
B) available-to-promise. 
C) capable-to-promise. 
D) the disaggregate plan. 
A) the master production schedule. 
B) available-to-promise. 
C) capable-to-promise. 
D) the disaggregate plan.

Question 6

One objective of sales and operations planning is to develop a companywide game plan to satisfy production.

Accepted Answer

A) True 
 B)False

Question 7

Implementing a companywide game plan for allocating resources addresses the long-standing battle between operations and marketing.

Accepted Answer

A) True 
 B)False

Question 8

A hotel manager must decide how many rooms to overbook.Room rates are $125 per night and each room costs $45 to maintain.A bumped customer is sent to another hotel at a cost of $75.Given the distribution of no-shows below,how many rooms should the manager overbook?

Accepted Answer

A) Overbook 9 rooms 
B) Overbook 10 rooms 
C) Overbook 11 rooms 
D) Overbook 12 rooms 
A) Overbook 9 rooms 
B) Overbook 10 rooms 
C) Overbook 11 rooms 
D) Overbook 12 rooms

Question 9

The transportation method is used for aggregate planning when the strategy for adjusting capacity is hiring and firing workers.

Accepted Answer

A) True 
 B)False

Question 10

A mixed strategy for adjusting capacity is simpler and easier to implement than any pure strategy.

Accepted Answer

A) True 
 B)False

Question 11

The following information relates to a company's aggregate production planning activities:
 
Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a level production strategy is used then the cost of the level production plan (inventory costs plus hiring and firing costs)is

Accepted Answer

A) $20,000 
B) $645,000 
C) $1,250,000 
D) $1,270,000 
A) $20,000 
B) $645,000 
C) $1,250,000 
D) $1,270,000

Question 12

A bagel company bakes a specialty bagel that it sells by the dozen every day.These specialty bagels can only be baked early in the morning before the store opens for business.The company estimates that the daily demand (in dozens)for its specialty bagel is distributed as follows:
 
Specialty bagels are sold by the dozen only at a cost of $9.00 per dozen.The cost to make one bagel is $0.50.Leftover specialty bagels are sold by the dozen the next day for a 50% discount.The optimal number of specialty bagels that should be baked tomorrow (in dozens)is

Accepted Answer

A) 5 dozen 
B) 4 dozen 
C) 3 dozen 
D) 2 dozen 
A) 5 dozen 
B) 4 dozen 
C) 3 dozen 
D) 2 dozen

Question 13

Strategies for proactive demand management would not include

Accepted Answer

A) shifting demand into other time periods 
B) offering products or services with countercyclical demand patterns 
C) partnering with suppliers to reduce information distortion along the supply chain 
D) using subcontracting to meet unexpected high demand levels 
A) shifting demand into other time periods 
B) offering products or services with countercyclical demand patterns 
C) partnering with suppliers to reduce information distortion along the supply chain 
D) using subcontracting to meet unexpected high demand levels

Question 14

Given the information below,the number of available-to-promise units in period 2 is

Accepted Answer

A) 400 
B) 150 
C) 50 
D) 0 
A) 400 
B) 150 
C) 50 
D) 0

Question 15

Which of the following is not a characteristic of aggregate planning for services?

Accepted Answer

A) labor is usually the most constraining resource for services 
B) service capacity must be provided at the appropriate place and time 
C) demand for services is easy to predict 
D) capacity for services is difficult to predict 
A) labor is usually the most constraining resource for services 
B) service capacity must be provided at the appropriate place and time 
C) demand for services is easy to predict 
D) capacity for services is difficult to predict

Question 16

The process of breaking an aggregate plan into more detailed plans is referred to as

Accepted Answer

A) collaborative planning. 
B) hierarchical planning. 
C) disaggregation. 
D) rough-cut planning. 
A) collaborative planning. 
B) hierarchical planning. 
C) disaggregation. 
D) rough-cut planning.

Inventory holding costs are an important consideration for the level production strategy.

Problems associated with using a part-time workers strategy for adjusting capacity include all of the following except

The difference between planned production and customer orders is known as

One objective of sales and operations planning is to develop a companywide game plan to satisfy production.

Implementing a companywide game plan for allocating resources addresses the long-standing battle between operations and marketing.

A hotel manager must decide how many rooms to overbook.Room rates are $125 per night and each room costs $45 to maintain.A bumped customer is sent to another hotel at a cost of $75.Given the distribution of no-shows below,how many rooms should the manager overbook?

The transportation method is used for aggregate planning when the strategy for adjusting capacity is hiring and firing workers.

A mixed strategy for adjusting capacity is simpler and easier to implement than any pure strategy.

Strategies for proactive demand management would not include

Given the information below,the number of available-to-promise units in period 2 is

Which of the following is not a characteristic of aggregate planning for services?

The process of breaking an aggregate plan into more detailed plans is referred to as

Operations Management

Quality Management

Statistical Quality Control

Product Design

Service Design

Processes and Technology

Scheduling

Capacity and Facilities

Human Resources

Project Management

Supply Chain Management: Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Operational Decision-Making Tools: Simulation

Operational Decision-Making Tools: Linear Programming

Resource Planning

Lean Systems

Operational Decision-Making Tools: Decision Analysis

Operational Decision-Making Tools: Acceptance Sampling

Decision-Making Tools: Facility Location Models

Operational Decision-Making Tools: Work Measurement

Filters

Exam 14: The Sales and Operations Planning Process

Inventory holding costs are an important consideration for the level production strategy.

Problems associated with using a part-time workers strategy for adjusting capacity include all of the following except

The difference between planned production and customer orders is known as

One objective of sales and operations planning is to develop a companywide game plan to satisfy production.

Implementing a companywide game plan for allocating resources addresses the long-standing battle between operations and marketing.

A hotel manager must decide how many rooms to overbook.Room rates are $125 per night and each room costs $45 to maintain.A bumped customer is sent to another hotel at a cost of $75.Given the distribution of no-shows below,how many rooms should the manager overbook?

The transportation method is used for aggregate planning when the strategy for adjusting capacity is hiring and firing workers.

A mixed strategy for adjusting capacity is simpler and easier to implement than any pure strategy.

Strategies for proactive demand management would not include

Given the information below,the number of available-to-promise units in period 2 is

Which of the following is not a characteristic of aggregate planning for services?

The process of breaking an aggregate plan into more detailed plans is referred to as

Operations Management

Quality Management

Statistical Quality Control

Product Design

Service Design

Processes and Technology

Scheduling

Capacity and Facilities

Human Resources

Project Management

Supply Chain Management: Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Operational Decision-Making Tools: Simulation

Operational Decision-Making Tools: Linear Programming

Resource Planning

Lean Systems

Operational Decision-Making Tools: Decision Analysis

Operational Decision-Making Tools: Acceptance Sampling

Decision-Making Tools: Facility Location Models

Operational Decision-Making Tools: Work Measurement

Filters