Question 1

Aggregate sales and operations planning occur in a company about every 3 to 18 months.

Accepted Answer

A) True 
 B)False

Question 2

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 3

In a logistics organization, vehicle dispatching immediately precedes vehicle loading.

Accepted Answer

A) True 
 B)False

Question 4

The sales and marketing plans are typically developed separately from the aggregate operations plan as a way of cross-checking results to insure the integrity of assumptions about the future.

Accepted Answer

A) True 
 B)False

Question 5

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 
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 6

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

Accepted Answer

A)  Process planning 
B)  Strategic capacity planning 
C)  Vehicle dispatching 
D)  Vehicle capacity planning 
E)  Warehouse receipt planning 
A)  Process planning 
B)  Strategic capacity planning 
C)  Vehicle dispatching 
D)  Vehicle capacity planning 
E)  Warehouse receipt planning

Question 7

The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for the intermediate term of 3 to 18 months.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following costs are relevant to aggregate operations planning?

Accepted Answer

A)  Sunk costs 
B)  Transaction costs 
C)  Backordering costs 
D)  Legal costs 
E)  Fixed costs 
A)  Sunk costs 
B)  Transaction costs 
C)  Backordering costs 
D)  Legal costs 
E)  Fixed costs

Question 9

The aggregate operations planning, variable "workforce level" refers to the number of workers needed to accomplish the planned production.

Accepted Answer

A) True 
 B)False

Question 10

Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.

Accepted Answer

A) True 
 B)False

Question 11

Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?

Accepted Answer

A)  Stable workforce, variable work hours 
B)  Chase 
C)  Level 
D)  Meeting demand 
E)  Minimizing inventory 
A)  Stable workforce, variable work hours 
B)  Chase 
C)  Level 
D)  Meeting demand 
E)  Minimizing inventory

Question 12

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

Accepted Answer

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

Question 13

Yield management is an important tool that can be used to shape demand patterns.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.

Accepted Answer

A) True 
 B)False

Question 16

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 
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 17

Using the cut-and-try method for aggregate operations planning, we can calculate the ending inventory and then calculate the safety stock as a percent of forecast demand. Suppose that the beginning inventory is 300, the production requirement in units of product is 1,350, demand forecast is 1,500, what is the ending inventory and percent safety stock?

Accepted Answer

A)  200 and 10% 
B)  150 and 10% 
C)  300 and 20% 
D)  450 and 30% 
E)  150 and 20% 
A)  200 and 10% 
B)  150 and 10% 
C)  300 and 20% 
D)  450 and 30% 
E)  150 and 20%

Question 18

In aggregate operations planning, the variable "production rate" refers to the number of units completed per unit of time.

Accepted Answer

A) True 
 B)False

Question 19

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.

Accepted Answer

A) True 
 B)False

Question 20

The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.

Accepted Answer

A) True 
 B)False

Aggregate sales and operations planning occur in a company about every 3 to 18 months.

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.

In a logistics organization, vehicle dispatching immediately precedes vehicle loading.

The sales and marketing plans are typically developed separately from the aggregate operations plan as a way of cross-checking results to insure the integrity of assumptions about the future.

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 logistics organization, which of the following activities most immediately follows aggregate sales and operations planning?

The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for the intermediate term of 3 to 18 months.

Which of the following costs are relevant to aggregate operations planning?

The aggregate operations planning, variable "workforce level" refers to the number of workers needed to accomplish the planned production.

Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.

Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?

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

Yield management is an important tool that can be used to shape demand patterns.

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

The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.

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

In aggregate operations planning, the variable "production rate" refers to the number of units completed per unit of time.

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.

The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.

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

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Exam 8: Sales and Operations Planning

Aggregate sales and operations planning occur in a company about every 3 to 18 months.

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.

In a logistics organization, vehicle dispatching immediately precedes vehicle loading.

The sales and marketing plans are typically developed separately from the aggregate operations plan as a way of cross-checking results to insure the integrity of assumptions about the future.

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 logistics organization, which of the following activities most immediately follows aggregate sales and operations planning?

The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for the intermediate term of 3 to 18 months.

Which of the following costs are relevant to aggregate operations planning?

The aggregate operations planning, variable "workforce level" refers to the number of workers needed to accomplish the planned production.

Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.

Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?

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

Yield management is an important tool that can be used to shape demand patterns.

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

The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.

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

In aggregate operations planning, the variable "production rate" refers to the number of units completed per unit of time.

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.

The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.

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