Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

What are the four main categories of cost relevant to aggregate operations planning?
(1) ____________________________
(2) ____________________________
(3) ____________________________
(4) ____________________________

Accepted Answer

(1 basic production costs.(2 costs assoc

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 5

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?

Accepted Answer

A) 1,200 
B) 1,300 
C) 1,340 
D) 1,500 
E) 1,540 
A) 1,200 
B) 1,300 
C) 1,340 
D) 1,500 
E) 1,540

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

What are the three basic production planning strategies?
(1) ____________________________
(2) ____________________________
(3) ____________________________

Accepted Answer

(1 chase.(2 stable workforce, variable w

Question 8

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

Accepted Answer

A) Level 
B) Strategic 
C) Balanced 
D) Synchronous 
E) Optimal 
A) Level 
B) Strategic 
C) Balanced 
D) Synchronous 
E) Optimal

Question 9

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 10

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

Question 11

Which of the following is considered a "pure" production planning strategy?

Accepted Answer

A) Variable workforce, stable work hours 
B) Lag demand 
C) Level playing field 
D) Stable workforce, variable work hours 
E) Product warehouse 
A) Variable workforce, stable work hours 
B) Lag demand 
C) Level playing field 
D) Stable workforce, variable work hours 
E) Product warehouse

Question 12

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 13

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 14

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 15

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

Accepted Answer

A) Demand cannot be segmented by customer. 
B) Inventory is perishable. 
C) Fixed costs are low, and variable costs are high. 
D) The customer is a "captive" of the system. 
E) The firm doing yield management is very profitable. 
A) Demand cannot be segmented by customer. 
B) Inventory is perishable. 
C) Fixed costs are low, and variable costs are high. 
D) The customer is a "captive" of the system. 
E) The firm doing yield management is very profitable.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) Pricing structures that 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 that 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 18

In conducting aggregate operations planning, there are a number of required inputs.Which of the following inputs are 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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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 400 units, the demand forecast is 900 units, and the required safety stock is 10 percent of the demand forecast, what is the production requirement? _________________________________

Accepted Answer

590
Explanation: Dem

Exam 19: Sales and Operations Planning

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

What are the four main categories of cost relevant to aggregate operations planning? (1) ____________________________ (2) ____________________________ (3) ____________________________ (4) ____________________________

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

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?

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

What are the three basic production planning strategies? (1) ____________________________ (2) ____________________________ (3) ____________________________

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

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 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.

Which of the following is considered a "pure" production planning strategy?

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

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

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

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

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

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 inputs are considered external to the firm?

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

Introduction

Strategy

Design of Products and Services

Project Management

Strategic Capacity Management

Learning Curves

Manufacturing Processes

Facility Layout

Service Processes

Waiting Line Analysis and Simulation

Process Design and Analysis

Six Sigma Quality

Statistical Quality Control

Lean Supply Chains

Logistics Distribution, and Transportation

Global Sourcing and Procurement

Enterprise Resource Planning Systems

Forecasting

Inventory Management

Material Requirements Planning

Workcenter Scheduling

Theory of Constraints

Health Care

Operations Consulting

Filters

What are the four main categories of cost relevant to aggregate operations planning? (1) (2) (3) (4)

What are the three basic production planning strategies? (1) (2) (3)