Sales & Operations Planning Test Questions – Flashcards
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A process to develop tactical plans by integrating marketing plans for new and existing products with the management of the supply chain; brings together all the plans for the business into one set of integrated plans.
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Sales & Operations Planning
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Sales and operations planning is a _____________ plan, residing between the detailed and strategic.
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tactical
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Is Tactical Planning low, moderate, or high risk?
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Moderate risk
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Monthly meeting by senior management
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Sales & Operations Planning
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Evaluates supply, demand, and cash flow for future periods
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Sales & Operations Planning
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Sales & Operations Planning Allocates critical resources of people, capacity, time, and __________.
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Money
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Is sales/operations planning done days/weeks out, months out, or years out?
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Months out
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What is the purpose of sales and operations planning?
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To select capacity options over the immediate time horizon.
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Workforces, shifts, overtime, subcontracting, and inventories are examples of ______________ options.
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capacity options
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What are the three categories of inputs to the S&OP process?
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Strategic Capacity levels, Demand Management, external capacities
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Existing Buildings and Processes fall under what category of S&OP Inputs?
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Strategic Capacity Levels
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Forecasts of customer demand, need for spares, etc., and pricing & promotions fall under what category of S&OP Inputs?
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Demand Management
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Suppliers and Subcontractors fall under what category of S&OP inputs?
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External Capacities
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S&OP happens _____-______ months out.
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12-24
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T/F: S&OP is a "big picture" approach to planning
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True
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values that decision makers use to translate the sales forecasts into resource requirements and to determine the feasibility and costs of alternative sales and operations plans.
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Planning Values
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A S&OP in which production is held constant and inventory is used to abosrb the differences between produciton and the sales forecast.
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Level
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A S&OP in which production is changed in each time period to match the sales forecast
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Chase
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A S&OP that varies both production and inventory levels in an effort to develop the most effective plan
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Mixed
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What are the three steps to top-down planning?
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1. Develop the aggregate sales forecast and planning values 2. Translate the sales forecast into resource requirements 3. Generate alternative production plans
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S&OP is especially critical for ____________, since they cannot be built in advance and stored (don't have inventory like manufactured goods)
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Services
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An approach that services commonly use with highly perishable products in which prices are regularly adjusted to maximize total profit. (ex: flights, hotels, rental cars, etc.)
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Yield Management
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What are some methods of smoothing out demand?
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Appointments, discounts/promotions, seasonal complements.
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What is a tiered workforce?
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Utilizing full-time and part-time workers and/or a seasonal workforce.
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What is offloading?
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Minimizing personnel intensive activities, such as using self-service kiosks, internet ordering , and/or assembly.
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What are two methods of making capacity match sales?
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Tiered Workforce, and/or offloading.
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What are two methods of making sales match capacity?
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Yield Management, smoothing out demand
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Workforce, inventory, subcontracting, and logistics decisions are part of _____________ planning.
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Tactical planning (S&OP)
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Planning numbers are somewhat aggregated (month by month) in what type of planning?
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Tactical planing (S&OP)
