Question 1

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

Accepted Answer

The answer of What is the purpose of S&OP and...

Question 2

Forty percent of a house painter's business is exterior work and the other sixty percent is interior.The average exterior paint job takes 30 hours of labor and $500 of paint and primer,but the average interior job takes only 6 hours of labor and $80 of paint and primer.If he gets 25 service calls for the coming month and 30 calls for the month after that,which of the following resource requirements is correct?

Accepted Answer

A) The painter has supply costs of greater than $13,500 but less than $13,600 for the next two months. 
B) The painter has a labor demand of greater than 800 hours but less than 850 hours for the next two months. 
C) The painter has supply costs of greater than $13,400 but less than $13,500 for the next two months. 
D) The painter has a labor demand of greater than 850 hours but less than 900 hours for the next two months.

Question 3

Planning numbers are somewhat aggregated (month by month)in:

Accepted Answer

A) strategic planning. 
B) operational planning. 
C) tactical planning. 
D) detailed planning and control.

Question 4

Offloading is part of a level strategy employed by services.

Accepted Answer

A) True 
 B)False

Question 5

Which of these is NOT an advantage of linking sales and operations planning throughout the supply chain as mentioned in the book?

Accepted Answer

A) increased sales revenue 
B) greater coordination 
C) improved productivity 
D) fewer disruptions in the flow of goods and services

Question 6

Create a minimum cost chase plan for the forecast shown in the table.There is no beginning inventory and regular production capacity is 350 units.Overtime costs $20 extra and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $15 per unit.Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory.There is room for only 100 units in inventory.What is the total plan cost?

Accepted Answer

The answer of Create a minimum cost chase plan for...

Question 7

Planning values are used in bottom-up planning,but cannot be used in top-down planning.

Accepted Answer

A) True 
 B)False

Question 8

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 answer of Create a level plan with a zero...

Question 9

A company has a sales forecast for the following five months as shown in the table.If they have a beginning inventory of 100 units,what amount should be produced under a level plan in order for them to have an ending inventory of zero units at the end of the five month period?

Accepted Answer

A) 320 units per month 
B) 360 units per month 
C) 400 units per month 
D) 440 units per month

Question 10

Seventy percent of a house painter's business is exterior work and the other thirty percent is interior.The average exterior paint job takes 20 hours of labor and $400 of paint and primer,but the average interior job takes only 6 hours of labor and $75 of paint and primer.If he gets 20 service calls for the coming month,which of the following resource requirements is correct?

Accepted Answer

A) The painter has supply costs of $4750 for next month. 
B) The painter has a labor demand of 260 hours for next month. 
C) The painter has supply costs of $6050 for next month. 
D) The painter has a labor demand of 204 hours for next month.

Question 11

Detailed planning and control is riskier than strategic planning.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

Bottom-up planning should be used when the product/service mix is unstable and resource requirements vary greatly across the offerings.

Accepted Answer

A) True 
 B)False

Question 14

A(n)________ production plan matches production in each time period with the sales forecast.

Accepted Answer

The answer of A(n)________ production plan matches production in each...

Question 15

This graph of expected sales level and expected output shows:

Accepted Answer

A) a chase production plan is being used. 
B) a level production plan is being used. 
C) a mixed production plan is being used. 
D) planning levels have been computed.

Exam 11: Sales and Operations Planning Aggregate Planning

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

Planning numbers are somewhat aggregated (month by month) in:

Offloading is part of a level strategy employed by services.

Which of these is NOT an advantage of linking sales and operations planning throughout the supply chain as mentioned in the book?

Planning values are used in bottom-up planning,but cannot be used in top-down planning.

A company has a sales forecast for the following five months as shown in the table.If they have a beginning inventory of 100 units,what amount should be produced under a level plan in order for them to have an ending inventory of zero units at the end of the five month period?

Detailed planning and control is riskier than strategic planning.

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

Bottom-up planning should be used when the product/service mix is unstable and resource requirements vary greatly across the offerings.

A(n)________ production plan matches production in each time period with the sales forecast.

This graph of expected sales level and expected output shows: