Deck 10: Sales and Operations Planning and Enterprise Resource Planning

Question 1

The feasibility check of a Master Production Schedule (MPS)is

A)rough-cut capacity planning (RCCP).
B)the aggregate capacity plan.
C)the detailed capacity plan.
D)enterprise capacity plan.

Answer 1

A

Question 2

Inventory information for firm Best Tools: What was the inventory at the end of March?

A)50 units
B)150 units
C)250 units
D)350 units

Answer 2

B

Question 3

The advantage of using cloud-based ERP systems is that

A)companies do not have to heavily invest in hardware.
B)data is accessible from any location or any device.
C)All of the above
D)None of the above

Answer 3

C

Question 4

ERP systems are increasingly becoming cloud-based.

Question 5

The typical time horizon for developing a Master Production Schedule (MPS)is

A)6 months to 1 year.
B)up to 3 months.
C)weekly.
D)daily.

Question 6

Which of the following is an input to the SOP process?

A)Demand forecasts
B)Product prices
C)Materials planning
D)Master schedule

Question 7

In the level SOP production plan,variations in demand from period to period are met by

A)varying production levels by adjusting employment levels.
B)varying production levels without adjusting employment levels.
C)changing price levels.
D)using inventory buffers.

Question 8

A planning strategy that produces the exact amount demanded in each period is known as

A)chase SOP.
B)level SOP.
C)hybrid SOP.
D)rough-cut SOP.

Question 9

The feasibility check of a Sales and Operations Plan (SOP)is

A)rough-cut capacity planning (RCCP).
B)the aggregate capacity plan.
C)the detailed capacity plan.
D)enterprise capacity plan.

Question 10

The typical time horizon for developing a Sales and Operations Plan (SOP)is

A)6 months to 1 year.
B)up to 3 months.
C)weekly.
D)daily.

Question 11

In yield management,the mechanism used to match capacity with demand is by

A)varying production levels.
B)keeping production constant.
C)changing price levels.
D)using inventory buffers.

Question 12

Creating a high-level plan,which involves groups or families of products,is called

A)group planning.
B)aggregation.
C)master scheduling.
D)enterprise planning.

Question 13

In doing "aggregate planning" for a firm producing paint,the aggregate planners would most likely deal with

A)just gallons of paint,without concern for the different colors and sizes.
B)gallons of paint,but be concerned with the different colors to be produced.
C)gallons,quarts,pints,and all the different sizes to be produced.
D)all the different sizes and all the different colors by size.

Question 14

In the chase SOP production plan,variations in demand from period to period are met by

A)varying production levels.
B)keeping production constant.
C)changing price levels.
D)using inventory buffers.

Question 15

The strategy that varies prices in order to match capacity with demand is known as

A)chase SOP.
B)level SOP.
C)yield management.
D)rough-cut capacity management.

Question 16

Inventory information for firm Best Tools: What is the expected inventory at the end of April?

A)50 units
B)150 units
C)250 units
D)350 units

Question 17

Breaking product families into individual products and components of products is called

A)product breakdown.
B)component planning.
C)disaggregation.
D)enterprise planning.

Question 18

A planning strategy that produces the same amount every period,and demand is met by varying inventory levels is known as

A)chase SOP.
B)level SOP.
C)hybrid SOP.
D)rough-cut SOP.

Question 19

The typical time horizon for production activity control and purchasing is

A)6 months to 1 year.
B)up to 3 months.
C)weekly.
D)daily.

Question 20

Cloud computing provides the opportunity for companies to obtain the benefits of ERP by investing heavily in hardware.

Question 21

The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand.

Question 22

Creating a high-level overview of planning,which involves groups or families of products,is called ________.

Question 23

Using cloud-based ERP systems provide the advantage that data is accessible from any location or any device.

Question 24

Disaggregating an SOP plan leads to a master production schedule (MPS).

Question 25

A method for planning capacity on a daily basis is known as ________.

Question 26

Sales and Operations Planning is also known as aggregate planning.

Question 27

Using mechanisms such as pricing to level demand is called ________.

Question 28

A planning system that focuses on bottlenecks to ensure that the MPS does not overload production processes or facilities is known as ________.

Question 29

Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of one to three months.

Question 30

Systems that help managers make decisions relating to the creation of schedules that balance demand and supply are known as ________.

Question 31

The feasibility check of a Master Production Schedule (MPS)is the aggregate capacity plan.

Question 32

Which of these factors need to be considered when computing the available capacity of a machine or system?

A)Scrap
B)Inefficiencies
C)Rework
D)A and B above
E)A and C above

Question 33

A planning strategy that produces the same amount every period,and demand is met by varying inventory levels is known as ________.

Question 34

The feasibility check of a Sales and Operations Plan (SOP)is rough-cut capacity planning.

Question 35

The portion of ERP that disaggregates the sales and operations plan (SOP)to determine when individual products will be produced is known as the ________.

Question 36

An advantage of the chase SOP production plan is that inventories can be kept relatively low.

Question 37

Breaking product families into individual products and components of products is called ________.

Question 38

A manager has prepared a forecast of expected aggregate demand for the next six months.Develop an aggregate plan to meet this demand given this additional information: A level production rate of 100 units per month will be used.Backorders are allowed,and they are charged at the rate of $8 per unit per month.Inventory holding costs,using average monthly inventory levels,are $1 per unit per month.Determine the cost of this plan if regular time cost is $20 per unit and beginning inventory is zero.

Question 39

Orders that are held in abeyance until more stock arrives are known as ________.

Question 40

A planning strategy that produces products in the exact amount demanded in each period is known as ________.

Question 41

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as

A)design capacity.
B)available capacity.
C)actual capacity.
D)rough capacity.

Question 42

The rate of capacity utilization that minimizes average product cost is known as

A)economies of scale.
B)diseconomies of scale.
C)best operating level.
D)efficiency.

Question 43

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as ________.

Question 44

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate.Hence the actual capacity of the printer is 36 pages per minute (ppm).

Question 45

The capacity for a machine or system that is available after accounting for scrap and rework is known as

A)design capacity.
B)available capacity.
C)actual capacity.
D)rough capacity.

Question 46

Which of these factors need to be considered when computing the actual capacity of a machine or system?

A)Scrap
B)Inefficiencies
C)Rework
D)All of the above
E)A and C above

Question 47

Increasing the capacity of the operation just before a bottleneck operation will increase the output of the process.

Question 48

The capacity for a machine or system that is available after accounting only for scrap and rework is known as actual capacity.

Question 49

The capacity that a machine or system should realize given optimal operating conditions is known as

A)design capacity.
B)available capacity.
C)actual capacity.
D)rough capacity.

Question 50

The capacity that a machine or system should realize given optimal operating conditions is known as ________.

Question 51

The productive capability of a firm is known as ________.

Question 52

The design capacity of a machine or system refers to the maximum output that can possibly be attained given optimal operating conditions.

Question 53

A step in a process that constraints the throughput of the process is known as ________.

Question 54

The capacity for a machine or system that is available after accounting for scrap and rework is known as ________.

Question 55

The phenomenon where producing more such that the average cost of production for the item decreases is known as

A)economies of scale.
B)diseconomies of scale.
C)best operating level.
D)efficiency.

Question 56

The phenomenon where production of more units results in higher average cost per item is known as

A)economies of scale.
B)diseconomies of scale.
C)best operating level.
D)disefficiency.

Question 57

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as available capacity.

Question 58

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate,and also on average 20% of the time is lost on account of the operator loading the paper,aligning the print cartridge,etc.Thus,effectively the printer can print how many pages per minute (ppm)?

A)30.4
B)36
C)28.8
D)24.6

Question 59

The capacity that a machine or system should realize given optimal operating conditions is the design capacity.

Question 60

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).This is the ________ capacity of the printer.

Question 61

Efficiency is defined as the ratio of

A)actual output to actual capacity.
B)actual output to design capacity.
C)design capacity to actual capacity.
D)actual capacity to actual output.

Question 62

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate,thus effectively printing 38 pages per minute (ppm).This is the ________ capacity of the printer.

Question 63

Capacity utilization is defined as the ratio of

A)actual output to actual capacity.
B)actual output to design capacity.
C)design capacity to actual capacity.
D)actual capacity to actual output.

Question 64

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate,and also on average 20% of the time is lost on account of the operator loading the paper,aligning the print cartridge,etc.Thus,effectively the printer can print ________ pages per minute (ppm).

Question 65

The capacity strategy where capacity is increased at relatively the same rate that demand increases is called

A)leading capacity.
B)lagging capacity.
C)matching capacity.
D)mass capacity.

Question 66

Given the following information,compute the capacity utilization of the system. Actual capacity = 30 units per day
Design capacity = 50 units per day
Actual output = 20 units per day

A)20%
B)40%
C)60%
D)80%

Question 67

Efficiency is the ratio of actual output to design capacity.

Question 68

The rate of capacity utilization that minimizes average product cost is known as ________.

Question 69

The capacity strategy where capacity is added in anticipation of demand is called ________.

Question 70

Capacity utilization is the ratio of actual output to actual capacity.

Question 71

The phenomenon where production of more units results in higher average cost per item is known as ________.

Question 72

The ratio of actual output to actual capacity is

A)efficiency.
B)throughput.
C)utilization.
D)productivity.

Question 73

In a matching capacity strategy,capacity is increased at relatively the same rate that demand increases.

Question 74

Given the following information,compute the efficiency of the system. Actual capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day

A)20%
B)40%
C)60%
D)80%

Question 75

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate,and also on average 20% of the time is lost on account of the operator loading the paper,aligning the print cartridge,etc.Thus,effectively the printer can print 30.4 pages per minute (ppm).This is the ________ capacity of the printer.

Question 76

The phenomenon where producing more such that the average cost of production for the item decreases is known as ________.

Question 77

The capacity strategy where capacity is added in anticipation of demand is called

A)leading capacity.
B)lagging capacity.
C)matching capacity.
D)mass capacity.

Question 78

In a lagging capacity strategy,capacity is added in anticipation of demand.

Question 79

The ratio of actual output to design capacity is

A)efficiency.
B)throughput.
C)utilization.
D)productivity.

Question 80

Given the following information,compute the efficiency of the system. Actual capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48%

A)20%
B)40%
C)60%
D)80%