Question 1

An economic strategy for adjusting demand can include adjusting capacity or managing demand.

Accepted Answer

A) True 
 B)False  True

Question 2

One objective of sales and operations planning is to develop a companywide game plan to satisfy production.

Accepted Answer

A) True 
 B)False  False

Question 3

A bagel company bakes a specialty bagel that it sells by the dozen every day.These specialty bagels can only be baked early in the morning before the store opens for business.The company estimates that the daily demand (in dozens)for its specialty bagel is distributed as follows:   Specialty bagels are sold by the dozen only at a cost of $9.00 per dozen.The cost to make one bagel is $0.50.Leftover specialty bagels are sold by the dozen the next day for a 50% discount.The bagel company's cost of overestimating demand,Co,is

Accepted Answer

A) $1.50 
B) $3.00 
C) $4.50 
D) $6.00 
A) $1.50 
B) $3.00 
C) $4.50 
D) $6.00 A

Question 4

The following information relates to a company's aggregate production planning activities:   Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a level production strategy is used,then the cost of the level production plan (inventory costs plus hiring and firing costs)is

Accepted Answer

A) $20,000 
B) $645,000 
C) $1,250,000 
D) $1,270,000 
A) $20,000 
B) $645,000 
C) $1,250,000 
D) $1,270,000

Question 5

The most effective aggregate planning strategy depends on

Accepted Answer

A) the demand distribution 
B) the competitive position 
C) the firm's cost structure 
D) All of these answer choices are correct. 
A) the demand distribution 
B) the competitive position 
C) the firm's cost structure 
D) All of these answer choices are correct.

Question 6

A chase demand strategy is one of several alternatives available for managing demand.

Accepted Answer

A) True 
 B)False

Question 7

The following information relates to a company's aggregate production planning activities:   Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a chase demand strategy is used,then the total firing cost for the plan is

Accepted Answer

A) $10,000 
B) $15,000 
C) $20,000 
D) $25,000 
A) $10,000 
B) $15,000 
C) $20,000 
D) $25,000

Question 8

The following information relates to a company's aggregate production planning activities:   Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a level production strategy is used,then the total cost of the plan (hiring cost,firing cost,and inventory carrying cost)is

Accepted Answer

A) $120,000 
B) $377,500 
C) $675,000 
D) $795,000 
A) $120,000 
B) $377,500 
C) $675,000 
D) $795,000

Question 9

A company is developing a linear programming model for its aggregate production plan.If It = units in inventory at the end of period t,Pt = units produced in period t,and Dt = demand in period t,then the company's demand constraint to ensure that demand is met in quarter 3 is

Accepted Answer

A) D3 = I2 - I3 + P3 
B) D3 = I3 + P3 
C) D3 = I3 - I2 + P3 
D) D3 = I2 - I3 + P2 
A) D3 = I2 - I3 + P3 
B) D3 = I3 + P3 
C) D3 = I3 - I2 + P3 
D) D3 = I2 - I3 + P2

Question 10

The process of breaking an aggregate plan into more detailed plans is referred to as

Accepted Answer

A) collaborative planning. 
B) hierarchical planning. 
C) disaggregation. 
D) rough-cut planning. 
A) collaborative planning. 
B) hierarchical planning. 
C) disaggregation. 
D) rough-cut planning.

Question 11

The difference between planned production and customer orders is known as

Accepted Answer

A) the master production schedule. 
B) available-to-promise. 
C) capable-to-promise. 
D) the disaggregate plan. 
A) the master production schedule. 
B) available-to-promise. 
C) capable-to-promise. 
D) the disaggregate plan.

Question 12

What is aggregate planning and what alternatives are generally feasible when developing the aggregate production plans?

Accepted Answer

Aggregate planning determines the resour

Question 13

Given the information below,the number of available-to-promise units in period 4 is

Accepted Answer

A) 400 
B) 150 
C) 50 
D) 0 
A) 400 
B) 150 
C) 50 
D) 0

Question 14

The following information relates to a company's aggregate production planning activities:   Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a level production strategy is used,then the required output per quarter is

Accepted Answer

A) 60,000 units. 
B) 42,500 units. 
C) 35,000 units. 
D) 25,000 units. 
A) 60,000 units. 
B) 42,500 units. 
C) 35,000 units. 
D) 25,000 units.

Question 15

A hot dog vendor must decide on Monday how many hot dogs to have available for the coming Saturday's football game.Each hot dog costs the vendor $3.00 and is sold for $5.00.After the game any unsold hot dogs are discounted and sold to the university cafeteria for $1.75.The vendor believes that the demand for hot dogs follows the probability distribution shown below:   The vendor's cost of underestimating demand,Cu,is

Accepted Answer

A) $3.00 
B) $1.75 
C) $2.00 
D) $3.25 
A) $3.00 
B) $1.75 
C) $2.00 
D) $3.25

Question 16

An optimizing technique originally developed for aggregate planning in the paint factory is the

Accepted Answer

A) linear decision rule. 
B) search decision rule. 
C) management coefficients model. 
D) transportation technique. 
A) linear decision rule. 
B) search decision rule. 
C) management coefficients model. 
D) transportation technique.

Question 17

Which of the following is an output of sales and operations planning?

Accepted Answer

A) company policies 
B) demand forecasts 
C) operations plans 
D) capacity constraints 
A) company policies 
B) demand forecasts 
C) operations plans 
D) capacity constraints

Question 18

Financial constraints are one of the major inputs of the sales and operations planning process.

Accepted Answer

A) True 
 B)False

Question 19

The following information relates to a company's aggregate production planning activities:   Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a level production strategy is used,the number of units to produce each quarter is

Accepted Answer

A) 42,500 
B) 85,000 
C) 62,500 
D) 37,500 
A) 42,500 
B) 85,000 
C) 62,500 
D) 37,500

Question 20

The following information relates to a company's aggregate production planning activities:   Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a level production strategy is used,the number of units in inventory at the end of quarter 3 is

Accepted Answer

A) 0 
B) 2,500 
C) 5,000 
D) 20,000 
A) 0 
B) 2,500 
C) 5,000 
D) 20,000

An economic strategy for adjusting demand can include adjusting capacity or managing demand.

One objective of sales and operations planning is to develop a companywide game plan to satisfy production.

The most effective aggregate planning strategy depends on

A chase demand strategy is one of several alternatives available for managing demand.

A company is developing a linear programming model for its aggregate production plan.If It = units in inventory at the end of period t,Pt = units produced in period t,and Dt = demand in period t,then the company's demand constraint to ensure that demand is met in quarter 3 is

The process of breaking an aggregate plan into more detailed plans is referred to as

The difference between planned production and customer orders is known as

What is aggregate planning and what alternatives are generally feasible when developing the aggregate production plans?

Given the information below,the number of available-to-promise units in period 4 is

An optimizing technique originally developed for aggregate planning in the paint factory is the

Which of the following is an output of sales and operations planning?

Financial constraints are one of the major inputs of the sales and operations planning process.

Introduction to Operations and Supply Chain Management

Supplement Operational Decision-Making Tools: Decision Analysis

Quality Management

Statistical Process Control

Supplement Operational Decision-Making Tools: Acceptance Sampling

Product Design

Service Design

Processes and Technology

Capacity and Facilities

Supplement Operational Decision-Making Tools: Facility Location Models

Human Resources

Supplement Operational Decision-Making Tools: Work Measurement

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Supplement Operational Decision-Making Tools: Transportation and Transshipment Models

Forecasting

Inventory Management

Supplement Operational Decision-Making Tools: Simulation

Supplement Operational Decision-Making Tools: Linear Programming

Enterprise Resource Planning

Lean Systems

Scheduling

Filters

Exam 20: Sales and Operations Planning

An economic strategy for adjusting demand can include adjusting capacity or managing demand.

One objective of sales and operations planning is to develop a companywide game plan to satisfy production.

The most effective aggregate planning strategy depends on

A chase demand strategy is one of several alternatives available for managing demand.

A company is developing a linear programming model for its aggregate production plan.If It = units in inventory at the end of period t,Pt = units produced in period t,and Dt = demand in period t,then the company's demand constraint to ensure that demand is met in quarter 3 is

The process of breaking an aggregate plan into more detailed plans is referred to as

The difference between planned production and customer orders is known as

What is aggregate planning and what alternatives are generally feasible when developing the aggregate production plans?

Given the information below,the number of available-to-promise units in period 4 is

An optimizing technique originally developed for aggregate planning in the paint factory is the

Which of the following is an output of sales and operations planning?

Financial constraints are one of the major inputs of the sales and operations planning process.

Introduction to Operations and Supply Chain Management

Supplement Operational Decision-Making Tools: Decision Analysis

Quality Management

Statistical Process Control

Supplement Operational Decision-Making Tools: Acceptance Sampling

Product Design

Service Design

Processes and Technology

Capacity and Facilities

Supplement Operational Decision-Making Tools: Facility Location Models

Human Resources

Supplement Operational Decision-Making Tools: Work Measurement

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Supplement Operational Decision-Making Tools: Transportation and Transshipment Models

Forecasting

Inventory Management

Supplement Operational Decision-Making Tools: Simulation

Supplement Operational Decision-Making Tools: Linear Programming

Enterprise Resource Planning

Lean Systems

Scheduling

Filters