Question 1

What are the five conditions named in the text that support yield management from an operational perspective?

Accepted Answer

The answer of What are the five conditions named in...

Question 2

The International Aggregate Planning Society (IAPS)has developed aggregate operations planning guidelines which are followed by a majority of manufacturing firms.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) Inventory Levels and economic conditions 
B) Market demand and subcontractor capacity 
C) Current physical capacity and current workforce 
D) Competitor behavior and current workforce 
E) Current physical capacity and raw material availability

Question 4

A "rate fence" is a person who purchases a service at list price and later sells the service at a premium to another person.This practice is often illegal or restricted as in "scalping" of tickets to a sporting event.

Accepted Answer

A) True 
 B)False

Question 5

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If beginning inventory is 4,000 units,the demand forecast is 2,900 units and the required safety stock is 10% of the demand forecast,what is the production requirement?

Accepted Answer

The answer of Using the cut-and-try method for aggregate operations...

Question 6

What are the four costs relevant to the aggregate operations plan?

Accepted Answer

The answer of What are the four costs relevant to...

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The transportation method of linear programming can incorporate which of the following factors when used in aggregate operations planning?

Accepted Answer

A) Learning curve effects 
B) The probability of quality failures 
C) Subcontracting 
D) Manufacturing scale economies 
E) Demand uncertainties

Question 9

Which of the following methodologies is used to verify that production and warehouse facilities,equipment and labor are available when needed?

Accepted Answer

A) Rough-cut capacity planning 
B) Materials requirement planning 
C) Capacity requirements planning 
D) Order scheduling 
E) Process planning

Question 10

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

Accepted Answer

A) Demand can be segmented by customer 
B) The product can be sold in advance 
C) Demand is highly variable 
D) Fixed costs are high and variable costs are low 
E) Demand is stable and close to capacity

Question 11

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If the beginning inventory is 500 units,the demand forecast is 1,000 and the necessary safety stock is 10% of the demand forecast,which of the following is the production requirement?

Accepted Answer

A) 1,000 
B) 600 
C) 550 
D) 450 
E) 100

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following aggregate operations planning methods uses pattern search procedures to find minimum points on the total cost curves?

Accepted Answer

A) Linear decision rules 
B) Linear programming 
C) Graphing and charting 
D) Simulation of aggregate plan 
E) None of the above

Question 15

Which of the following aggregate planning methods uses mathematically derived coefficients to specify production rates and workforce Levels in a series of equations?

Accepted Answer

A) Linear decision rules 
B) Linear programming 
C) Graphing and charting 
D) Simulation of aggregate plan 
E) Cut and try

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

An advantage of the Level strategy for aggregate operations planning is which of the following?

Accepted Answer

A) Total costs through the entire system are minimized 
B) There is a smooth flow throughout the production system 
C) There is variety for the workers through the mixing of models produced 
D) The risk of backorders is minimized 
E) Customer service is improved

Question 19

In an overview of the major operations planning activities in a typical organization,which of the following activities immediately follows aggregate sales and operations planning in a manufacturing operation?

Accepted Answer

A) Process planning 
B) Strategic capacity planning 
C) Master scheduling 
D) Materials requirements planning 
E) Order scheduling

Question 20

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

Accepted Answer

The answer of Explain how yield management works and why...

Exam 16: Aggregate Sales and Operations Planning

What are the five conditions named in the text that support yield management from an operational perspective?

The International Aggregate Planning Society (IAPS)has developed aggregate operations planning guidelines which are followed by a majority of manufacturing firms.

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

A "rate fence" is a person who purchases a service at list price and later sells the service at a premium to another person.This practice is often illegal or restricted as in "scalping" of tickets to a sporting event.

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If beginning inventory is 4,000 units,the demand forecast is 2,900 units and the required safety stock is 10% of the demand forecast,what is the production requirement?

What are the four costs relevant to the aggregate operations plan?

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

The transportation method of linear programming can incorporate which of the following factors when used in aggregate operations planning?

Which of the following methodologies is used to verify that production and warehouse facilities,equipment and labor are available when needed?

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

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

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.

Which of the following aggregate operations planning methods uses pattern search procedures to find minimum points on the total cost curves?

Which of the following aggregate planning methods uses mathematically derived coefficients to specify production rates and workforce Levels in a series of equations?

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.

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

An advantage of the Level strategy for aggregate operations planning is which of the following?

In an overview of the major operations planning activities in a typical organization,which of the following activities immediately follows aggregate sales and operations planning in a manufacturing operation?

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