Deck 3: S&OP/Aggregate planning

Question 1

The goal of S&OP process is _______________________________.Complete the sentence.

A) To optimize resources to support the company's business objectives
B) To develop an detailed production plan for the next month
C) To create a sales plan for the next 6 month
D) To optimize the delivery of materials to the manufacturing centers

Answer 1

A

Question 2

Among the following choices, select the disadvantages to using a pure level strategy for aggregate planning
1)High level of excess inventory
2)Incurring subcontracting or overtime costs
3)High cost associated with changing production capacity
4)Incurring Backorder costs

A) (1)
B) (1) and (2)
C) (3) and (4)
D) (1), (2), and (4)

Answer 2

D

Question 3

ABC Inc.custom makes furniture.It has 20 workers who produce 135 units per quarter each.The cost per unit is $2500.00.If a pure chase strategy is used, how many workers are fired or hired during quarter 2? Be as close as possible.The quarterly demand information is provided below.
Q1:3,000 units, Q2:500 units, Q3:4,500 units, Q4:6,000 units

A) Hired 20 workers
B) Hired 5 workers
C) Fired 19 workers
D) No one is hired

Answer 3

C

Question 4

Currently the firm is using a pure level strategy.It has 60 workers who produce 1200 units per quarter each.The cost per unit is $35.00.The cost of holding 1 unit per quarter is $1.50.Of the following descriptions of the situation, what is true? The quarterly demand information is provided below.
Q1:120,000 units, Q2:100,000 units, Q3:80,000 units, Q4:92,000 units

A) Throughout the year, no back orders occur
B) During the first quarter, 22,000 units were back ordered
C) A backorder occurred only during 1 quarter
D) A backorder occurred only during 3 quarter

Question 5

The typical planning horizon for the Sales and Operations Planning (S&OP)process covers _________ period.Fill in the blank space.

A) 6~18 months
B) 18~24 months
C) 30 days
D) 90~150 days

Question 6

In the simplest form, what is Sales and Operations Planning (S&OP)?

A) Typically monthly review of all functional areas of the company process by top management
B) Bi-annual gathering of the Sales staff
C) Weekly gathering in order to interpret the demand forecast results
D) A shop floor level gathering of employees to find areas of improvement

Question 7

Among the following activities, choose ones that are not key Sales and Operations Planning (S&OP)activities.
1)Financial analysis
2)New product analysis
3)Production schedule analysis
4)Supply analysis

A) (1) and (4)
B) (3)
C) (2) and (3)
D) (4)

Question 8

Turner Inc.custom makes furniture.It has 20 workers who produce 135 units per quarter each.The company is using a pure level strategy.When there is 2,000 units on hand at the start of the first quarter, what should be your level production be set to? The quarterly demand information is provided below.
Q1:3,000 units, Q2:500 units, Q3:4,500 units, Q4:6,000 units

A) 3,500 units per quarter
B) 4,500 units per quarter
C) 3,800 units per quarter
D) 3,000 units per quarter

Question 9

Currently the firm has 80 workers who produce 800 units per quarter each.The cost per unit is $35.00.The cost of holding 1 unit per quarter is $1.50.The cost of hiring a worker is $100.The cost of firing a worker is $500.When using the pure chase strategy, what is the total cost for the year? The quarterly demand information is provided below.
Q1:20,000 units, Q2:100,000 units, Q3:60,000 units, Q4:153,000 units

A) $11,694,000
B) $11,889,375
C) $8,570,500
D) $35,000,345

Question 10

What cannot be defined as an aggregate output?

A) Pounds of processed cheese
B) Number of patients seen
C) Hours of catering service delivered
D) Total number of workers

Question 11

What cannot be defined as an aggregate resource?

A) Tons of raw materials
B) Units of finished products
C) Hours of machine time
D) Total number of workers

Question 12

Mom &Pop Inc.has a demand forecast for the next 6 month.It can currently produce 2000 units per month and each worker can produce 250 units per month each.IF company is using a pure chase strategy, which of the following statements is not true? The monthly demand table is provided below.
$$\begin{array} { c | c c c c c c } \text { Month } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { Demand } & 1,000 & 500 & 3,000 & 4,000 & 3,000 & 500\end{array}$$

A) Mom &Pop Inc. hires for 2 month
B) Mom &Pop Inc. hires 19 workers in total
C) Mom &Pop Inc. fires 20 workers in total
D) Mom &Pop Inc. fires workers in during month 6

Question 13

At its initial announcements, there were 4 level 1 SCOR model activities including ____________ and ______________.Fill in the blanks.

A) Buy/Make
B) Make/Return
C) Source/Plan
D) Plan/Buy

Question 14

What is the relationship between Aggregate planning and MPS?

A) Disaggregation of the former
B) Summary of the former
C) Extrapolation of the latter
D) No relationship between the two

Question 15

Among the following activities, choose ones that are key Sales and Operations Planning (S&OP)activities.
1)Production schedule analysis
2)New product analysis
3)Demand analysis
4)Customer analysis

A) (1) and (4)
B) (3)
C) (2) and (3)
D) None of the above

Question 16

Select the choices that are not typical benefits gained from using the SCOR model?
1)Less inventory
2)Faster access to important customer information
3)Slower cycle times
4)Improved visibility of the supply chain

A) (1) and (4)
B) (3)
C) (2) and (3)
D) None of the above

Question 17

Select the primary functions of the SCOR model.
1)Measuring the performance of the supply chain
2)Maximizing asset utilization
3)Regulating and moderating the supply chain
4)Implementing best practices

A) (1) and (4)
B) (3)
C) (2) and (3)
D) (4)

Question 18

The Sales and Operations Planning (S&OP)operate at the product level of ______________.Complete the sentence.

A) Product Lines and Families
B) Components
C) Manufacturing Operations
D) Individual Products

Question 19

Which level one activity was not included in the initial phase of the SCOR model development?

A) Make
B) Deliver
C) Plan
D) Return

Question 20

The manufacturing and control framework (M&CF)is composed of many different plans with different scope and focuses.Below are M&CF processes listed according to their position within the framework hierarchy starting with the higher level process on the left.

A) S&OP -> MRP->MPS-> Aggregate planning
B) Aggregate planning -> S&OP -> MRP->MPS
C) S&OP -> Aggregate planning->MPS-> MRP
D) MPS->S&OP-> MRP->MRPII

Question 21

Currently the firm is using a pure chase strategy.It has 60 workers who produce 1200 units per quarter each.The cost per unit is $35.00.The cost of holding 1 unit per quarter is $1.50.The cost of hiring a worker is $50.The cost of firing a worker is $200.Calculate the cost associated with changing capacity.
Q1: 120,000 Q2: 100,000 Q3: 80,000 Q4: 92,000

Question 22

Mom &Pop Inc.has a demand forecast for the next 6 month.It can currently produce 2000 units per month and each worker can produce 250 units per month each.If company is using a pure level strategy, how many units in total needs to be back ordered for a period?

Question 23

The demand for Quarter 1,2,3,and 4 is the following:
Q1:20,000 Q2:100,000 Q3:60,000 Q4:153,000
Currently the firm has 80 workers who produce 800 units per quarter each.The cost per unit is $35.00.The cost of holding 1 unit per quarter is $1.50.The cost of hiring a worker is $100.When using the pure level strategy, what is the total cost for the year?

Question 24

ABC Inc.custom makes furniture.It has 20 workers who produce 135 units per quarter each.The cost per unit is $2500.00.If a pure level strategy is used, what is the total cost of holding inventory based on a holding cost of $500/unit/quarter? Be as close as possible.
Q1: 3,000 Q2: 500 Q3: 500 Q4: 6,000

Question 25

For the next 5 period forecasted demands, what is the level of production required to not need back ordering? Pure level strategy is being used.

Question 26

Describe the function of Sales and Operations Planning (S&OP)process.

Question 27

The Sales and Operations Planning (S&OP)process interfaces with other business processes in order to obtain information and integrate production with the overall objectives of the organizations.List the 4 other business processes that S&OP interfaces with.

Question 28

Among the key S&OP activities, state the activity that attempts to integrate the production with other core business processes.

Question 29

In your own words, briefly describe the function of aggregate planning.

Question 30

In your own words, briefly describe the objectives of the Supply chain operations reference (SCOR)model.