Question 1

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  False

Question 2

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. E

Question 3

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 E

Question 4

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 5

Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.

Accepted Answer

A) True 
 B)False

Question 6

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) The product can be kept to be sold when demand is stronger. 
D) Fixed costs are high, and variable costs are low. 
E) Demand is highly variable. 
A) Demand can be segmented by customer. 
B) The product can be sold in advance. 
C) The product can be kept to be sold when demand is stronger. 
D) Fixed costs are high, and variable costs are low. 
E) Demand is highly variable.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.

Accepted Answer

A) True 
 B)False

Question 9

The master production schedule is a crucial input into the aggregate operations plan.

Accepted Answer

A) True 
 B)False

Question 10

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?

Accepted Answer

A) 1,000 
B) 600 
C) 550 
D) 450 
E) 100 
A) 1,000 
B) 600 
C) 550 
D) 450 
E) 100

Question 11

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 12

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 13

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 14

In conducting aggregate operations planning, there are a number of required inputs.Which of the following inputs are considered 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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Exam 19: Sales and Operations Planning

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.

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

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

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?

Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.

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

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

The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.

The master production schedule is a crucial input into the aggregate operations plan.

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?

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

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

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

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

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?

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

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

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

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