Question 1

Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.

Accepted Answer

A) True 
 B)False

Question 2

Backordering 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 3

A rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.

Accepted Answer

A) True 
 B)False

Question 4

The operations plan should not be updated but should be followed precisely until the longest-term planning horizon has passed.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Process planning 
B)  Workforce scheduling 
C)  Vehicle loading 
D)  Materials requirements planning 
E)  Order scheduling 
A)  Process planning 
B)  Workforce scheduling 
C)  Vehicle loading 
D)  Materials requirements planning 
E)  Order scheduling

Question 6

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 7

Aggregate planning techniques is developed from the master schedule and the strategic capacity plan.

Accepted Answer

A) True 
 B)False

Question 8

The sales and operations planning process consists of a series of meetings.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following methods discussed in the text requires generating several alternative aggregate plans?

Accepted Answer

A)  Trial and error 
B)  Production smoothing 
C)  Graphing and charting 
D)  Aggregate plan simulation 
E)  Cut and try 
A)  Trial and error 
B)  Production smoothing 
C)  Graphing and charting 
D)  Aggregate plan simulation 
E)  Cut and try

Question 10

Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.

Accepted Answer

A) True 
 B)False

Question 11

The master production schedule is a crucial input into the aggregate operations plan.

Accepted Answer

A) True 
 B)False

Question 12

The essence of yield management is the ability to manage supply.

Accepted Answer

A) True 
 B)False

Question 13

A rate fence is a logical justification for different prices for what is essentially the same service.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not one of the "number of interesting issues that arise in yield management?"

Accepted Answer

A)  Pricing structures must appear logical to the customer and justify different prices 
B)  Designing yield management programs that cannot be imitated by a competitor 
C)  How to handle variability in customer arrivals, duration, and interval 
D)  Managing the service process 
E)  Training workers and managers to work in a yield management environment 
A)  Pricing structures must appear logical to the customer and justify different prices 
B)  Designing yield management programs that cannot be imitated by a competitor 
C)  How to handle variability in customer arrivals, duration, and interval 
D)  Managing the service process 
E)  Training workers and managers to work in a yield management environment

Question 15

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

Accepted Answer

A)  Competitor behavior and economic conditions 
B)  Market demand and inventory levels 
C)  Subcontractor capacity and current workforce 
D)  Economic conditions and current physical capacity 
E)  Raw material availability and inventory levels 
A)  Competitor behavior and economic conditions 
B)  Market demand and inventory levels 
C)  Subcontractor capacity and current workforce 
D)  Economic conditions and current physical capacity 
E)  Raw material availability and inventory levels

Question 16

Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and allowing lost sales is which of the following production planning strategies?

Accepted Answer

A)  Stable workforce, variable work hours 
B)  Chase 
C)  Level 
D)  Full employment 
E)  Skill maintenance 
A)  Stable workforce, variable work hours 
B)  Chase 
C)  Level 
D)  Full employment 
E)  Skill maintenance

Question 17

Using constant workforce and varying inventory and stock out, what would be the constant workforce? Production required in periods 1,2 and 3 respectively are 1,200, 1,500 and 900 units. One worker during the panning horizon can produce two units in one day. Number of work days are 22 in period 17 in period 2 and 21 in period 3. Assume that the beginning inventory and the ending inventory required are 300 units each. What is the number of workers required during the planning horizon of three periods?

Accepted Answer

A)  60 
B)  600 
C)  35 
D)  30 
E)  300 
A)  60 
B)  600 
C)  35 
D)  30 
E)  300

Question 18

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)  The product can be kept to be sold when demand is stronger 
D)  Fixed costs are high and variable costs are low 
E)  Demand is highly variable 
A)  Demand can be segmented by customer 
B)  The product can be sold in advance 
C)  The product can be kept to be sold when demand is stronger 
D)  Fixed costs are high and variable costs are low 
E)  Demand is highly variable

Question 19

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

Accepted Answer

A)  Process planning 
B)  Workforce scheduling 
C)  Master production scheduling 
D)  Materials requirements planning 
E)  Order scheduling 
A)  Process planning 
B)  Workforce scheduling 
C)  Master production scheduling 
D)  Materials requirements planning 
E)  Order scheduling

Question 20

Foregone profit margins are considered as relevant aggregate operations planning costs.

Accepted Answer

A) True 
 B)False

Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.

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

A rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.

The operations plan should not be updated but should be followed precisely until the longest-term planning horizon has passed.

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

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

Aggregate planning techniques is developed from the master schedule and the strategic capacity plan.

The sales and operations planning process consists of a series of meetings.

Which of the following methods discussed in the text requires generating several alternative aggregate plans?

Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.

The master production schedule is a crucial input into the aggregate operations plan.

The essence of yield management is the ability to manage supply.

A rate fence is a logical justification for different prices for what is essentially the same service.

Which of the following is not one of the "number of interesting issues that arise in yield management?"

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

Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and allowing lost sales is which of the following production planning strategies?

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

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

Foregone profit margins are considered as relevant aggregate operations planning costs.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing Processes

Service Processes

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

Filters

Exam 8: Sales and Operations Planning

Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.

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

A rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.

The operations plan should not be updated but should be followed precisely until the longest-term planning horizon has passed.

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

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

Aggregate planning techniques is developed from the master schedule and the strategic capacity plan.

The sales and operations planning process consists of a series of meetings.

Which of the following methods discussed in the text requires generating several alternative aggregate plans?

Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.

The master production schedule is a crucial input into the aggregate operations plan.

The essence of yield management is the ability to manage supply.

A rate fence is a logical justification for different prices for what is essentially the same service.

Which of the following is not one of the "number of interesting issues that arise in yield management?"

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

Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and allowing lost sales is which of the following production planning strategies?

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

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

Foregone profit margins are considered as relevant aggregate operations planning costs.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing Processes

Service Processes

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

Filters