Exam 19: Sales and Operations Planning

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

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

Long-range planning generally covers a period of eighteen months or more.

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

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

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.

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

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

The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?

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

Assume that production required in periods 1, 2 and 3 respectively are 1,200, 1,500, and 900 units. One worker during the planning horizon can produce two units in one day. Number of workdays are 22 in period 1, −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?

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

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

One of the conditions that makes yield management effective is when inventory is easily stored and held for a time when demand is stronger.

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 percent of the demand forecast, which of the following is the production requirement?

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

The sales and operations planning process is made up of a variety of analytical techniques that interact to produce short- and intermediate-term goals.

Which of the following is a production planning strategy presented in the textbook?

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

In a services organization, strategic capacity planning follows process planning.