Question 1

Sales and operations planning indicates how the organization will use its tactical capacity resources to meet expected customer demand.

Accepted Answer

Sales and operations planning (S&OP) is a process that helps businesses to align their demand and supply plans. It involves determining how a company's capacity resources (such as labor, equipment, and inventory) will be used to meet customer demand. Therefore, the statement is true.

Question 2

At the beginning of the semester,you decide to devote 12 hours a week outside of class time to your operations management studies,regardless of scheduled tests,assignments,or project due dates.This is a level plan approach to your favorite course.

Accepted Answer

A level plan approach involves dedicating a consistent amount of time each week to studying or completing coursework, regardless of deadlines or other external factors. In this scenario, the individual has decided to devote 12 hours a week to their operations management studies, indicating a level plan approach.

Question 3

The alternative production strategies of level,chase,or mixed that are available in top-down planning cannot be used in bottom-up planning.

Accepted Answer

The alternative production strategies of level, chase, or mixed can also be used in bottom-up planning. In fact, these strategies can be applied in any type of production planning regardless of the approach used.

Question 4

Planning numbers are somewhat aggregated (month by month)in:
A)strategic planning.
B)operational planning.
C)tactical planning.
D)detailed planning and control.

Accepted Answer

Tactical planning involves medium-term decisions and is typically done on a monthly basis, making it more aggregated than operational or detailed planning.

Question 5

Each entity in a supply chain should produce its own sales and operations plan independent of the other members in order to improve the overall cost performance in a supply chain.

Accepted Answer

Collaboration and integration among entities in a supply chain are crucial for optimizing overall cost performance and ensuring that plans are aligned to meet demand efficiently. Independent planning can lead to inefficiencies and increased costs due to lack of coordination.

Question 6

Detailed planning and control is riskier than strategic planning.

Accepted Answer

Detailed planning and control focus on short-term objectives and the means to achieve them, which typically involves less uncertainty and risk compared to strategic planning, which deals with long-term goals and inherently involves higher levels of uncertainty and risk due to the longer time horizons and broader scope of decisions.

Question 7

Sales and operations planning across a supply chain is similar in nature to collaborative planning,forecasting,and replenishment.

Accepted Answer

Both sales and operations planning (S&OP) and collaborative planning, forecasting, and replenishment (CPFR) involve collaboration and communication across various stakeholders in a supply chain to optimize the use of resources and meet customer demand. S&OP focuses on aligning sales, production, and inventory planning across the supply chain, while CPFR involves joint forecasting and replenishment activities between suppliers and retailers. Therefore, the two concepts share similar goals and approaches.

Question 8

Net cash flow is the difference between the value added and the cash on hand at the end of the period.

Accepted Answer

Net cash flow is the difference between cash inflows and cash outflows during a specific period of time, not the difference between value added and cash on hand at the end of the period.

Question 9

Last month,the sales and operations plan showed projections from January through April.This month,the sales and operations plan shows projections from February through May.This is an example of a rolling planning horizon.

Accepted Answer

A rolling planning horizon is when the planning period is continuously updated and extended into the future, rather than having a fixed planning period. In this scenario, the sales and operations plan is updated each month with a new projection period, extending the plan into the future.

Question 10

Offloading is part of a level strategy employed by services.

Accepted Answer

Offloading is a strategy used by services to manage demand and maintain service levels. It involves shifting some of the workload to another resource or provider, allowing the service to maintain its level of service to customers.

Question 11

Planning values are used in bottom-up planning,but cannot be used in top-down planning.

Accepted Answer

Planning values can be used in both bottom-up planning and top-down planning. However, in top-down planning, the planning values may be set at a higher level and then cascaded down to lower levels of the organization.

Question 12

Last month a firm made 100 model A's using all of their available labor.If they have already taken orders for 150 model A's for next month,then their planning value must be 1.5.

Accepted Answer

The planning value is not directly determined by the ratio of orders to previous production. It involves assessing capacity, resources, and strategies to meet the increased demand, not just a simple calculation based on past production and future orders.

Question 13

A routine flight from LaGuardia Airport to Will Rogers Airport may have passengers that have paid radically different ticket prices.These prices fluctuate based on an approach called yield management.

Accepted Answer

Yield management is a pricing strategy that airlines use to sell the same seat on a plane for different prices based on factors such as demand, time of booking, and competition. As a result, passengers on the same flight may have paid vastly different ticket prices.

Question 14

Detailed planning and control offers the greatest ability to adjust capacity.

Accepted Answer

Detailed planning and control focuses on short-term adjustments and execution, while strategic planning offers greater ability to adjust capacity over the long term.

Question 15

The objective function of an optimization modeling approach to S&OP should not allow available labor or equipment time to be exceeded.

Accepted Answer

The answer of The objective function of an optimization modeling...

Question 16

When the products and services have very different resource requirements and the mix is unstable from one period to the next,bottom-up planning works best.

Accepted Answer

Bottom-up planning allows for flexibility in resource allocation and can better accommodate changes in resource requirements from period to period.

Question 17

A home improvement store adds several workers to the garden center in the summer in order to meet the demands of do-it-yourselfers for their dazzling array of plants.Once gardening season is over,both the workers' jobs (and the plants they sold)will perish.The home improvement store is following an offloading strategy.

Accepted Answer

The home improvement store is following a seasonal strategy, not an offloading strategy. They are hiring additional workers and stocking more plants to meet the increased demand during gardening season, but they do not plan to simply dispose of these workers and plants once the season is over. They will likely cut back on staffing and plant orders until the next gardening season.

Question 18

Within the context of the planning cycle,the planning that takes place at the highest levels of the firm is called:
A)strategic planning.
B)operational planning.
C)tactical planning.
D)detailed planning and control.

Accepted Answer

Strategic planning is the highest level of planning, which involves setting long-term goals and objectives for the entire organization. This type of planning is typically done by senior executives and focuses on the overall direction and vision of the company. Operational planning is focused on specific actions and tasks needed to meet short-term goals and objectives, while tactical planning involves developing specific plans to achieve the goals set out in the strategic plan. Detailed planning and control is a more specific type of planning that occurs at lower levels of the organization and involves creating detailed plans for specific projects or initiatives.

Question 19

Bottom-up planning should be used when the product/service mix is unstable and resource requirements vary greatly across the offerings.

Accepted Answer

Bottom-up planning is a more detailed approach to planning where plans are developed individually for each product or service, and then aggregated to form an overall plan. It is more suitable when the product/service mix is unstable and varies greatly in terms of resource requirements.

Question 20

Sales and operations planning is a necessary task for all companies,but is never a source of competitive advantage.

Accepted Answer

Effective sales and operations planning can lead to improved efficiency, better utilization of resources, and increased profitability, which can give a company a competitive advantage over its rivals. Therefore, sales and operations planning can be a source of competitive advantage for companies.

Quiz 11: Sales and Operations Planning Aggregate Planning