Deck 6: Integrated Operations Planning

Question 1

A company is using exponential smoothing to develop its forecast. It should choose an alpha factor:

A)with a very low value
B)of 0.5
C)with a very high value

Answer 1

C

Question 2

Which of the following illustrates a typical conflict in objectives between sales and operations?

A)operations prefers many product variation, sales prefers few product variations
B)operations prefers long lead times, sales prefers short lead times.
C)operations prefers maximized revenue, sales prefers maximized production
D)operations prefers responsive schedules, sales prefers stable schedules

Answer 2

B

Question 3

a company implements its monthly S&OP process, the process should begin with:

A)Developing and specifying the constraints related to manufacturing capabilities
B)Determining the financial objectives
C)Looking at existing orders from major customers
D)Gathering in formation from sales and marketing

Answer 3

B

Question 4

Knowing the location and status of inventory and resources is referred to as:

A)intelligence
B)visibility
C)knowledge
D)integration

Question 5

Dell computer is making a forecast for the next year, which of the following forecasts would most likely have the largest forecast error (as measure by the percentage error)?

A)Total number of computers (laptops and desktops) to be sold next year in US
B)Total number of laptops to be sold next year in US
C)Total number of desktop to be sold next year in US
D)Total number of laptops with 2 Gigabyte RAM, 80 Gigabyte hard drive and 16x DVD drive to be sold next year in US

Question 6

recent years some companies have begun to work closely with their customers and/or suppliers by sharing information to develop forecasts of demand. The procedure they are following is known as:

A)Coordinated Forecasting of requirements
B)Joint planning of Demand Forecasts
C)Collaborative Planning, Forecasting, and Replenishment
D)Conjoint Analysis and Forecasting

Question 7

As a forecasting technique, moving average:

A)is useful when only base and irregular demand components exist
B)is never useful
C)is useful when demand patterns repeat with cyclic, trend, or seasonal
Components
D)is useful when there is a strong relationship between demand and certain
Independent variables

Question 8

Which of the following is NOT a key to making S&OP work in an organization.

A)S&OP should be executed monthly
B)S&OP should have a clear leader
C)S&OP should focus 12-18 months into the future
D)None of the above

Question 9

Which of the following is NOT a benefit of S&OP?

A)the S&OP process eliminates the need to have finished goods inventory
B)the S&OP process results in better customer service
C)the S&OP process provides better visibility into future capacity problems
D)the S&OP process provides a single set of numbers to run the business.