Exam 10: Sales and Operations Planning Aggregate Planning

A hotel using yield management would ________ prices if demand is higher than expected only if the expected result is ________.

A company has a sales forecast for the following five months as shown in the table.If they have a beginning inventory of 1225 units,what amount should be produced under a level plan in order for them to have an ending inventory of zero units at the end of the five month period?

This graph of expected sales level and expected output shows:

The Super Bowl is right around the corner and Gowgem Hotels is aquiver with anticipation.They'd like to price their rooms at their three city locations,next to the stadium,near the airport,and in the suburbs,as high as possible but still achieve 100% occupancy.The approach they should take to this opportunity is:

A major retailer has recently deployed self-checkout stands at the front of the store.As long as you don't have items like paint,cold medicine,beer,fruits,or vegetables in your shopping cart,you can check out quickly in one of these lines.This retailer is providing a prime example of:

Forty percent of a house painter's business is exterior work and the other sixty percent is interior.The average exterior paint job takes 30 hours of labor and $500 of paint and primer,but the average interior job takes only 6 hours of labor and $80 of paint and primer.If he gets 25 service calls for the coming month and 30 calls for the month after that,which of the following resource requirements is correct?

Create a minimum cost chase plan for the forecast shown in the table.There is no beginning inventory and regular production capacity is 350 units.Overtime costs $20 extra and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $15 per unit.Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory.There is room for only 100 units in inventory.What is the total plan cost?

What are the possibilities for matching capacity to sales and vice versa when doing S&OP in a service environment?

An organization with twenty people developing sales and operations plans might receive twenty different proposals.What are some factors an organization might consider when deciding among these alternative plans? Provide a ranking for your factors and support your ranking with examples from recent business news media.

A company that makes the rocket widget has one machine capable of producing this unique item.The machine requires an attendant,who works 40 hours a week for $12 per hour and has made himself available for a maximum of 8 hours of overtime.It costs $20 per hour to run the machine and it is capable of producing 10,000 rocket widgets per hour.The widgets sell for $10 per hundred and cost $1 per hundred in materials.If the production manager wishes to develop a sales and operations plans using an optimization model,which of the following statements is valid?

It costs $10 to make a single unit using regular production and $15 to make a single unit using overtime production.Total overtime production is limited to 1000 units for the five month period.The manufacturing plant has a regular production capacity of 250 units per month and 225 units in inventory at the start of the planning period.There is a $5 per unit charge for holding inventory at the end of each month and a limit of 600 units ending inventory for any period.What is the minimum cost production plan if the forecast must be met?

Within the context of the planning cycle,the planning that takes place at the highest levels of the firm is called:

Net cash flow is the difference between the value added and the cash on hand at the end of the period.

A company has a sales forecast for the following five months as shown in the table.If they have a beginning inventory of 100 units,what amount should be produced under a level plan in order for them to have an ending inventory of zero units at the end of the five-month period?

Seventy percent of a house painter's business is exterior work and the other thirty percent is interior.The average exterior paint job takes 20 hours of labor and $400 of paint and primer,but the average interior job takes only 6 hours of labor and $75 of paint and primer.If he gets 20 service calls for the coming month,which of the following resource requirements is correct?

There are few,if any,options for adjusting capacity levels for managers involved in what planning level?

It costs $12 to make a single unit using regular production and $15 to make a single unit using overtime production.Total overtime production is limited to 500 units for the five month period.The manufacturing plant has a regular production capacity of 250 units per month and 50 units in inventory at the start of the planning period.There is a $5 per unit charge for holding inventory at the end of each month and a limit of 250 units ending inventory for any period.What is the total number of units to be produced using overtime throughout the entire planning period if the forecast must be met and costs are to be minimized?

When the products and services have very different resource requirements and the mix is unstable from one period to the next,bottom-up planning works best.

Planning values are used in bottom-up planning,but cannot be used in top-down planning.

Which of these is NOT an advantage of linking sales and operations planning throughout the supply chain?