Exam 19: Sales and Operations Planning

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?

In services, once the aggregate staffing level is determined, the focus is on short-term workforce scheduling.

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

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, and demand forecast is 1,500. What is the ending inventory and percent safety stock?

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

Costs incurred in hiring, training, and laying off personnel are considered relevant aggregate operations planning costs.

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

Order scheduling is the step in the aggregate operations planning process that immediately follows material requirements planning.

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

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.

Short-range planning covers a period from one day to two weeks.

The aggregate operations plan is developed from the master schedule and the strategic capacity plan.

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?

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

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

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

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.

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

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 100 units, the demand forecast is 1,200, and the necessary safety stock is 20 percent of the demand forecast, which of the following is the production requirement?