Home Page Aggregate Planning Chapter 14 Sales and Operations Planning Process - Flashcards

Chapter 14 Sales and Operations Planning Process – Flashcards

Kenneth Wheeler

7 July 2022

question

Sales and operations planning is an aggregate planning process that determines the capacity needed to meet immediate demand.

answer

Ans: False

question

Implementing a companywide game plan for allocating resources addresses the long-standing battle between operations and finance.

answer

Ans: False

question

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

answer

Ans: True

question

An aggregate operations plan specifies the production quantities for an entire product family or product line.

answer

Ans: True

question

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

answer

question

An operations plan is an input into the sales and operations planning process.

answer

question

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

answer

question

Overtime and undertime are common strategies for adjusting demand.

answer

question

The level strategy for adjusting capacity is only appropriate when there is no variation in demand.

answer

Ans: False

question

A chase strategy involves hiring and firing workers so that production trails demand.

answer

question

Inventory holding costs are an important consideration for the level production strategy.

answer

question

When demand fluctuations are extreme using overtime and undertime is a feasible strategy for adjusting capacity.

answer

question

Subcontracting is a feasible alternative for adjusting capacity provided the supplier can reliably meet quality and time requirements.

answer

question

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

answer

question

One of several strategies for managing demand is to shift it into other time periods using incentives, sales promotions, and advertising.

answer

question

A mixed strategy for adjusting capacity is simpler and easier to implement than any pure strategy.

answer

question

Most companies use mixed strategies for managing demand.

answer

question

The transportation method is used for aggregate planning when the strategy for adjusting capacity is hiring and firing workers.

answer

question

Aggregate planning involves the process of determining the timing and quantity of production for an individual item over an intermediate time frame.

answer

question

With a pure strategy for aggregate planning only one capacity variable is changed.

answer

question

Most companies use mixed strategies for production planning.

answer

question

Disaggregation is the process of breaking a sales and operations plan into more detailed plans.

answer

question

Sharing information and synchronizing production across the supply chain is known as disaggregation.

answer

question

Revenue management seeks to maximize profit from time-sensitive products and services.

answer

question

All of the following are inputs to the aggregate production planning process except

answer

c. sales plans

question

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

answer

c. operations plans

question

Sales and operations planning is an aggregate planning process for a(n)______________ time horizon.

answer

b. intermediate

question

The term aggregate planning reflects the fact that plans are developed for ___________, rather than _____________.

answer

a. product families, individual products

question

Strategies for proactive demand management would not include

answer

using subcontracting to meet unexpected high demand levels.

question

Which of the following is an objective to sales and operations planning?

answer

Develop an economic strategy for meeting demand.

question

The most effective aggregate planning strategy depends on

answer

d. All of these answer choices are correct.

question

Adjusting available capacity by hiring and firing workers to match demand is an example of a(n) ________ strategy.

answer

b. chase demand

question

The primary cost associated with the level production strategy is the cost of

answer

a. holding inventory.

question

Problems associated with using a part-time workers strategy for adjusting capacity include all of the following except

answer

d. high retirement costs.

question

Which of the following is not a strategy for adjusting capacity?

answer

d. product substitution

question

Which of the following is not a strategy for managing demand?

answer

c. Redirecting demand to a competitor.

question

Shifting demand into other time periods can be accomplished through

answer

d. All of these answer choices are correct.

question

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 number of workers hired at the start of quarter 2 is

answer

b. 20

question

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 chase demand strategy is used then the number of workers hired at the start of quarter 4 is

answer

c. 75

question

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 chase demand strategy is used the number of workers fired at the start of quarter 3 is

answer

b. 40

question

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 chase demand strategy is used the total hiring and firing costs for the production plan is

answer

c. $202,500.00

question

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

answer

A. 42500

question

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 workers required each quarter is

answer

c. 85

question

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

answer

d. 20,000

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question

Sales and operations planning is an aggregate planning process that determines the capacity needed to meet immediate demand.

answer

Ans: False

question

Implementing a companywide game plan for allocating resources addresses the long-standing battle between operations and finance.

answer

Ans: False

question

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

answer

Ans: True

question

An aggregate operations plan specifies the production quantities for an entire product family or product line.

answer

Ans: True

question

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

answer

question

An operations plan is an input into the sales and operations planning process.

answer

question

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

answer

question

Overtime and undertime are common strategies for adjusting demand.

answer

question

The level strategy for adjusting capacity is only appropriate when there is no variation in demand.

answer

Ans: False

question

A chase strategy involves hiring and firing workers so that production trails demand.

answer

question

Inventory holding costs are an important consideration for the level production strategy.

answer

question

When demand fluctuations are extreme using overtime and undertime is a feasible strategy for adjusting capacity.

answer

question

Subcontracting is a feasible alternative for adjusting capacity provided the supplier can reliably meet quality and time requirements.

answer

question

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

answer

question

One of several strategies for managing demand is to shift it into other time periods using incentives, sales promotions, and advertising.

answer

question

A mixed strategy for adjusting capacity is simpler and easier to implement than any pure strategy.

answer

question

Most companies use mixed strategies for managing demand.

answer

question

The transportation method is used for aggregate planning when the strategy for adjusting capacity is hiring and firing workers.

answer

question

Aggregate planning involves the process of determining the timing and quantity of production for an individual item over an intermediate time frame.

answer

question

With a pure strategy for aggregate planning only one capacity variable is changed.

answer

question

Most companies use mixed strategies for production planning.

answer

question

Disaggregation is the process of breaking a sales and operations plan into more detailed plans.

answer

question

Sharing information and synchronizing production across the supply chain is known as disaggregation.

answer

question

Revenue management seeks to maximize profit from time-sensitive products and services.

answer

question

All of the following are inputs to the aggregate production planning process except

answer

c. sales plans

question

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

answer

c. operations plans

question

Sales and operations planning is an aggregate planning process for a(n)______________ time horizon.

answer

b. intermediate

question

The term aggregate planning reflects the fact that plans are developed for ___________, rather than _____________.

answer

a. product families, individual products

question

Strategies for proactive demand management would not include

answer

using subcontracting to meet unexpected high demand levels.

question

Which of the following is an objective to sales and operations planning?

answer

Develop an economic strategy for meeting demand.

question

The most effective aggregate planning strategy depends on

answer

d. All of these answer choices are correct.

question

Adjusting available capacity by hiring and firing workers to match demand is an example of a(n) ________ strategy.

answer

b. chase demand

question

The primary cost associated with the level production strategy is the cost of

answer

a. holding inventory.

question

Problems associated with using a part-time workers strategy for adjusting capacity include all of the following except

answer

d. high retirement costs.

question

Which of the following is not a strategy for adjusting capacity?

answer

d. product substitution

question

Which of the following is not a strategy for managing demand?

answer

c. Redirecting demand to a competitor.

question

Shifting demand into other time periods can be accomplished through

answer

d. All of these answer choices are correct.

question

answer

b. 20

question

answer

c. 75

question

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 chase demand strategy is used the number of workers fired at the start of quarter 3 is

answer

b. 40

question

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 chase demand strategy is used the total hiring and firing costs for the production plan is

answer

c. $202,500.00

question

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

answer

A. 42500

question

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 workers required each quarter is

answer

c. 85

question

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

answer

d. 20,000

Chapter 14 Sales and Operations Planning Process – Flashcards

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