Deck 8: Sales and Operations Planning

Full screen (f)
exit full mode
Question
The objective of the Aggregate Operations Plan is to insure that the marketing and sales plans are realistic.
Use Space or
up arrow
down arrow
to flip the card.
Question
Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
Question
Aggregate sales and operations planning occur in a company about every 3 to 18 months.
Question
Aggregate Planning Techniques is developed from the master schedule and the strategic capacity plan.
Question
The sales and operations planning process consists of a series of meetings.
Question
The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.
Question
The Aggregate Operations Plan differs in virtually every aspect in service organizations as contrasted with
manufacturing organizations.
Question
The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.
Question
The sales and marketing plans are typically developed separately from the Aggregate Operations Plan as a way of cross-
checking results to insure the integrity of assumptions about the future.
Question
The International Aggregate Planning Society (IAPS)has developed aggregate operations planning guidelines that are followed by a majority of manufacturing firms.
Question
The operations plan should not be updated but should be followed precisely until the longest-term planning horizon has passed.
Question
The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and
inventory on hand.
Question
The Aggregate Operations Plan translates annual and quarterly business plans into broad labor and output plans for the
.
Question
Accurate medium-range planning increases the likelihood of operating within the limits of a budget.
Question
Backordering costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
Question
Foregone profit margins are considered as relevant aggregate operations planning costs.
Question
Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing.
Question
Costs incurred in hiring,training and laying off personnel are considered relevant aggregate operations planning costs.
Question
Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain.
Question
The sales and operations planning process is made up of a variety of analytical techniques that interact to produce
short and intermediate term goals.
Question
Order scheduling is the step in the Aggregate Operations Planning process that immediately follows material requirements planning.
Question
Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the
same as their current products.
Question
Yield management is the process of allocating the right type of capacity to the right type of customer at the right
prices at the right time to maximize revenue or yield.
Question
The Aggregate Operations Planning variable "workforce level" refers to the number of workers needed to accomplish the planned production.
Question
In a services organization strategic capacity planning follows process planning.
Question
In services,once the aggregate staffing level is determined,the focus is on short-term workforce and customer scheduling.
Question
The essence of yield management is the ability to manage supply.
Question
In an overview of the major operations planning activities in a typical organization,which of the following activities precedes aggregate sales and operations planning?

A)Process planning
B)Workforce scheduling
C)Master production scheduling
D)Materials requirements planning
E)Order scheduling
Question
rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.
Question
In aggregate operations planning the variable "production rate" refers to the number of units completed per unit of time.
Question
Because a level production strategy does not require adjustment in the short-to-medium term,aggregate sales and operations planning is not required.
Question
In a logistics organization vehicle dispatching immediately precedes vehicle loading.
Question
One of the conditions that makes yield management effective is when inventory is easily stored and held for a time when demand is stronger.
Question
The master production schedule is a crucial input into the Aggregate Operations Plan.
Question
Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.
Question
Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.
Question
The Aggregate Operations Plan variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.
Question
Yield management is an important tool that can be used to shape demand patterns.
Question
In an overview of the major operations planning activities in a typical logistics organization,which of the following activities follows aggregate sales and operations planning?

A)Process planning
B)Workforce scheduling
C)Vehicle loading
D)Materials requirements planning
E)Order scheduling
Question
rate fence is a logical justification for different prices for what is essentially the same service.
Question
In an overview of the major operations planning activities in a typical service organization,which of the following activities follows aggregate sales and operations planning?

A)Process planning
B)Workforce scheduling
C)Master scheduling
D)Materials requirements planning
E)Order scheduling
Question
The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?

A)Workforce levels and inventory on hand
B)Inventory on hand and financing costs for that inventory
C)The strategic plan and the products available for sale
D)The workforce level and the degree of automation
E)Operational costs and the cash flow to support operations
Question
Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels,order backlogs,and allowing lost sales is which of the following production planning strategies?

A)Stable workforce,variable work hours
B)Chase
C)Level
D)Full employment
E)Skill maintenance
Question
From an operational perspective yield management is least effective under which of the following circumstances?

A)Demand can be segmented by customer
B)The product can be sold in advance
C)The product can be kept to be sold when demand is stronger
D)Fixed costs are high and variable costs are low
E)Demand is highly variable
Question
In conducting aggregate operations planning there are a number of required inputs.Which of the following are considered inputs internal to the firm?

A)Inventory levels and economic conditions
B)Market demand and subcontractor capacity
C)Current physical capacity and current workforce
D)Competitor behavior and current workforce
E)Current physical capacity and raw material availability
Question
In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

A)Competitor behavior and economic conditions
B)Market demand and inventory levels
C)Subcontractor capacity and current workforce
D)Economic conditions and current physical capacity
E)Raw material availability and inventory levels
Question
From an operational perspective yield management is least effective under which of the following circumstances?

A)Demand can be segmented by customer
B)The product can be sold in advance
C)Demand is highly variable
D)Fixed costs are high and variable costs are low
E)Demand is stable and close to capacity
Question
From an operational perspective yield management is most effective under which of the following circumstances?

A)Demand cannot be segmented by customer
B)Inventory is perishable
C)Fixed costs are low and variable costs are high
D)The customer is a "captive" of the system
E)The firm doing yield management is very profitable
Question
Which of the following is considered a "pure" production planning strategy?

A)Variable workforce,stable work hours
B)Lag demand
C)Level playing field
D)Stable workforce,variable work hours
E)Product warehouse
Question
Which of the following costs are relevant to aggregate operations planning?

A)Sunk costs
B)Transaction costs
C)Backordering costs
D)Legal costs
E)Fixed costs
Question
Which of the following methods discussed in the text requires generating several alternative aggregate plans?

A)Trial and error
B)Production smoothing
C)Graphing and charting
D)Aggregate plan simulation
E)Cut and try
Question
Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If the beginning inventory is 100 units,the demand forecast is 1,200,and the necessary safety stock is 20% of the demand forecast,which of the following is the production requirement?

A)1,200
B)1,300
C)1,340
D)1,500
E)1,540
Question
Which of the following is a production planning strategy presented in the textbook?

A)Level
B)Strategic
C)Balanced
D)Synchronous
E)Optimal
Question
In an overview of the major operations planning activities in a typical logistics organization,which of the following activities most immediately follows aggregate sales and operations planning?

A)Process planning
B)Strategic capacity planning
C)Vehicle dispatching
D)Vehicle capacity planning
E)Warehouse receipt planning
Question
Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If the beginning inventory is 500 units,the demand forecast is 1,000,and the necessary safety stock is 10% of the demand forecast,which of the following is the production requirement?

A)1,000
B)600
C)550
D)450
E)100
Question
Which of the following is not one of the "number of interesting issues that arise in yield management?"

A)Pricing structures must appear logical to the customer and justify different prices
B)Designing yield management programs that cannot be imitated by a competitor
C)How to handle variability in customer arrivals,duration,and interval
D)Managing the service process
E)Training workers and managers to work in a yield management environment
Question
Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?

A)Stable workforce,variable work hours
B)Chase
C)Level
D)Meeting demand
E)Minimizing inventory
Question
In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

A)Inventory levels and market demand
B)Raw material availability and competitor's behavior
C)Current workforce and economic conditions
D)Current physical capacity and market demand
E)Subcontractor capacity and inventory levels
Unlock Deck
Sign up to unlock the cards in this deck!
Unlock Deck
Unlock Deck
1/58
auto play flashcards
Play
simple tutorial
Full screen (f)
exit full mode
Deck 8: Sales and Operations Planning
1
The objective of the Aggregate Operations Plan is to insure that the marketing and sales plans are realistic.
False
2
Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
True
3
Aggregate sales and operations planning occur in a company about every 3 to 18 months.
False
4
Aggregate Planning Techniques is developed from the master schedule and the strategic capacity plan.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
5
The sales and operations planning process consists of a series of meetings.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
6
The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
7
The Aggregate Operations Plan differs in virtually every aspect in service organizations as contrasted with
manufacturing organizations.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
8
The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
9
The sales and marketing plans are typically developed separately from the Aggregate Operations Plan as a way of cross-
checking results to insure the integrity of assumptions about the future.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
10
The International Aggregate Planning Society (IAPS)has developed aggregate operations planning guidelines that are followed by a majority of manufacturing firms.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
11
The operations plan should not be updated but should be followed precisely until the longest-term planning horizon has passed.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
12
The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and
inventory on hand.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
13
The Aggregate Operations Plan translates annual and quarterly business plans into broad labor and output plans for the
.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
14
Accurate medium-range planning increases the likelihood of operating within the limits of a budget.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
15
Backordering costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
16
Foregone profit margins are considered as relevant aggregate operations planning costs.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
17
Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
18
Costs incurred in hiring,training and laying off personnel are considered relevant aggregate operations planning costs.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
19
Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
20
The sales and operations planning process is made up of a variety of analytical techniques that interact to produce
short and intermediate term goals.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
21
Order scheduling is the step in the Aggregate Operations Planning process that immediately follows material requirements planning.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
22
Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the
same as their current products.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
23
Yield management is the process of allocating the right type of capacity to the right type of customer at the right
prices at the right time to maximize revenue or yield.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
24
The Aggregate Operations Planning variable "workforce level" refers to the number of workers needed to accomplish the planned production.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
25
In a services organization strategic capacity planning follows process planning.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
26
In services,once the aggregate staffing level is determined,the focus is on short-term workforce and customer scheduling.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
27
The essence of yield management is the ability to manage supply.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
28
In an overview of the major operations planning activities in a typical organization,which of the following activities precedes aggregate sales and operations planning?

A)Process planning
B)Workforce scheduling
C)Master production scheduling
D)Materials requirements planning
E)Order scheduling
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
29
rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
30
In aggregate operations planning the variable "production rate" refers to the number of units completed per unit of time.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
31
Because a level production strategy does not require adjustment in the short-to-medium term,aggregate sales and operations planning is not required.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
32
In a logistics organization vehicle dispatching immediately precedes vehicle loading.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
33
One of the conditions that makes yield management effective is when inventory is easily stored and held for a time when demand is stronger.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
34
The master production schedule is a crucial input into the Aggregate Operations Plan.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
35
Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
36
Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
37
The Aggregate Operations Plan variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
38
Yield management is an important tool that can be used to shape demand patterns.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
39
In an overview of the major operations planning activities in a typical logistics organization,which of the following activities follows aggregate sales and operations planning?

A)Process planning
B)Workforce scheduling
C)Vehicle loading
D)Materials requirements planning
E)Order scheduling
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
40
rate fence is a logical justification for different prices for what is essentially the same service.
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
41
In an overview of the major operations planning activities in a typical service organization,which of the following activities follows aggregate sales and operations planning?

A)Process planning
B)Workforce scheduling
C)Master scheduling
D)Materials requirements planning
E)Order scheduling
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
42
The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?

A)Workforce levels and inventory on hand
B)Inventory on hand and financing costs for that inventory
C)The strategic plan and the products available for sale
D)The workforce level and the degree of automation
E)Operational costs and the cash flow to support operations
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
43
Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels,order backlogs,and allowing lost sales is which of the following production planning strategies?

A)Stable workforce,variable work hours
B)Chase
C)Level
D)Full employment
E)Skill maintenance
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
44
From an operational perspective yield management is least effective under which of the following circumstances?

A)Demand can be segmented by customer
B)The product can be sold in advance
C)The product can be kept to be sold when demand is stronger
D)Fixed costs are high and variable costs are low
E)Demand is highly variable
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
45
In conducting aggregate operations planning there are a number of required inputs.Which of the following are considered inputs internal to the firm?

A)Inventory levels and economic conditions
B)Market demand and subcontractor capacity
C)Current physical capacity and current workforce
D)Competitor behavior and current workforce
E)Current physical capacity and raw material availability
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
46
In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

A)Competitor behavior and economic conditions
B)Market demand and inventory levels
C)Subcontractor capacity and current workforce
D)Economic conditions and current physical capacity
E)Raw material availability and inventory levels
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
47
From an operational perspective yield management is least effective under which of the following circumstances?

A)Demand can be segmented by customer
B)The product can be sold in advance
C)Demand is highly variable
D)Fixed costs are high and variable costs are low
E)Demand is stable and close to capacity
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
48
From an operational perspective yield management is most effective under which of the following circumstances?

A)Demand cannot be segmented by customer
B)Inventory is perishable
C)Fixed costs are low and variable costs are high
D)The customer is a "captive" of the system
E)The firm doing yield management is very profitable
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
49
Which of the following is considered a "pure" production planning strategy?

A)Variable workforce,stable work hours
B)Lag demand
C)Level playing field
D)Stable workforce,variable work hours
E)Product warehouse
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
50
Which of the following costs are relevant to aggregate operations planning?

A)Sunk costs
B)Transaction costs
C)Backordering costs
D)Legal costs
E)Fixed costs
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
51
Which of the following methods discussed in the text requires generating several alternative aggregate plans?

A)Trial and error
B)Production smoothing
C)Graphing and charting
D)Aggregate plan simulation
E)Cut and try
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
52
Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If the beginning inventory is 100 units,the demand forecast is 1,200,and the necessary safety stock is 20% of the demand forecast,which of the following is the production requirement?

A)1,200
B)1,300
C)1,340
D)1,500
E)1,540
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
53
Which of the following is a production planning strategy presented in the textbook?

A)Level
B)Strategic
C)Balanced
D)Synchronous
E)Optimal
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
54
In an overview of the major operations planning activities in a typical logistics organization,which of the following activities most immediately follows aggregate sales and operations planning?

A)Process planning
B)Strategic capacity planning
C)Vehicle dispatching
D)Vehicle capacity planning
E)Warehouse receipt planning
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
55
Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If the beginning inventory is 500 units,the demand forecast is 1,000,and the necessary safety stock is 10% of the demand forecast,which of the following is the production requirement?

A)1,000
B)600
C)550
D)450
E)100
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
56
Which of the following is not one of the "number of interesting issues that arise in yield management?"

A)Pricing structures must appear logical to the customer and justify different prices
B)Designing yield management programs that cannot be imitated by a competitor
C)How to handle variability in customer arrivals,duration,and interval
D)Managing the service process
E)Training workers and managers to work in a yield management environment
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
57
Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?

A)Stable workforce,variable work hours
B)Chase
C)Level
D)Meeting demand
E)Minimizing inventory
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
58
In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

A)Inventory levels and market demand
B)Raw material availability and competitor's behavior
C)Current workforce and economic conditions
D)Current physical capacity and market demand
E)Subcontractor capacity and inventory levels
Unlock Deck
Unlock for access to all 58 flashcards in this deck.
Unlock Deck
k this deck
locked card icon
Unlock Deck
Unlock for access to all 58 flashcards in this deck.