Question 1

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

Accepted Answer

Demand forecasts are an input to the Sales and Operations Planning (SOP) process, as they help in aligning the company's supply chain, production, and sales plans with its strategic goals.

Question 2

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

Accepted Answer

In the level SOP strategy, the production is kept constant, and variations in demand are met by using inventory buffers. This means that the company will produce at a constant level and maintain a surplus inventory during periods of low demand to meet the demand during periods of high demand. Therefore, using inventory buffers is the best choice to meet demand fluctuations in the level SOP strategy.

Question 3

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

Accepted Answer

B

Question 4

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

Accepted Answer

The typical time horizon for developing a Master ProductionSchedule (MPS) is up to 3 months. This time frame allows for efficient planning while still allowing for adjustments to be made based on changes in demand or production capabilities.

Question 5

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

Accepted Answer

Feasibility check of a Master Production Schedule (MPS) is typically done through rough-cut capacity planning (RCCP). RCCP is a high-level capacity planning that ensures that overall resources are not overcommitted or underutilized. Therefore, it is appropriate for evaluating the feasibility of the MPS before developing the detailed capacity plan or enterprise capacity plan. Aggregate capacity plan is a mid-term capacity planning that determines the overall resources needed over a longer time horizon. Detailed capacity plan and enterprise capacity plan are more specific and detailed capacity planning methodologies that come after RCCP.

Question 6

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

Accepted Answer

The typical time horizon for developing a Sales and Operations Plan (SOP) is 6 months to 1 year, as it involves medium to long-term planning to balance supply and demand effectively.

Question 7

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

Accepted Answer

Yield management is a strategy that varies prices in order to match capacity with demand. It involves analyzing demand patterns and adjusting prices accordingly to optimize revenue. This strategy is commonly used in industries such as air travel and hospitality, where capacity is fixed and demand can fluctuate greatly. Chase SOP refers to a production strategy where production is adjusted to match demand, while level SOP refers to a production strategy where production is kept constant regardless of demand. Rough-cut capacity management involves estimating capacity needs based on rough data, rather than detailed analysis.

Question 8

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

Accepted Answer

The feasibility check of a Master Production Schedule (MPS) is typically done through a process called Rough-Cut Capacity Planning (RCCP), not the aggregate capacity plan. RCCP is a more detailed and specific check to ensure that the MPS is achievable given the available capacity.

Question 9

Sales and Operations Planning is also known as aggregate planning.

Accepted Answer

Sales and Operations Planning (S&OP) is also known as aggregate planning as it involves creating a high-level strategic plan for meeting demand and managing resources. It involves the integration of sales and marketing plans with production plans to ensure that the organization is able to meet customer demand while optimizing its resources.

Question 10

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

Accepted Answer

This statement is true. The purpose of aggregate planning is to create a production plan that optimizes the use of an organization's resources while meeting expected demand. This involves balancing inventory, production rates, workforce levels, and other factors to ensure that the organization can meet its objectives.

Question 11

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

Accepted Answer

Chase SOP strategy relies on adjusting the production rate to match the demand, which helps in avoiding excess inventory buildup. Therefore, it allows businesses to keep inventories relatively low, reducing the holding costs associated with inventory.

Question 12

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

Accepted Answer

Disaggregating an SOP plan involves breaking down the production plan into more detailed schedules for individual products or product lines, which is the basis for creating a master production schedule (MPS).

Question 13

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

Accepted Answer

The answer of The feasibility check of a Sales and...

Question 14

The typical time horizon for production activity control and purchasing is

Accepted Answer

The answer of The typical time horizon for production activity...

Question 15

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

Accepted Answer

Aggregate planning typically involves planning at a more general level, focusing on total production volumes rather than specific product details like colors or sizes.

Question 16

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

Accepted Answer

Chase SOP (Sales and Operations Planning) strategy involves adjusting production rates, work force levels, or inventory levels in response to changing demand, with the goal of producing the exact amount demanded in each period.

Question 17

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

Accepted Answer

The answer of Aggregate planning is intermediate-range capacity planning that...

Question 18

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

Accepted Answer

The planning strategy that produces the same amount every period and meets demand by varying inventory levels is known as level SOP, which is also called the level production plan or the uniform plant loading plan. Chase SOP, on the other hand, matches production to demand by varying the workforce or production capacity. Hybrid SOP combines the features of both level and chase SOPs, while rough-cut SOP is a planning method that estimates resource requirements based on approximate calculations rather than detailed data.

Question 19

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

Accepted Answer

Disaggregation is the process of breaking down larger product families or components into smaller, individual products or components. This is often done to better manage and optimize the design, production, and distribution of products. Options A, B, and D do not specifically refer to this process.

Question 20

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

Accepted Answer

Aggregation is the process of creating a high-level plan by grouping or consolidating various products or product lines. This helps in better forecasting, capacity planning, and resource allocation. Group planning and master scheduling are more focused on individual products or operations, while enterprise planning involves coordinating all aspects of the business.

Quiz 10: Sales and Operations Planning and Enterprise Resource Planning