Question 1

The output of the financial planning stage serves as an input to ______.

Accepted Answer

The output of the financial planning stage serves as an input to the pre-S&OP meeting. The pre-S&OP meeting is a meeting held before the executive S&OP meeting to discuss the financial plan and other relevant information.

Question 2

Which planning approach is used when management calculates the resource requirement for each individual set of products or services and then combines to get an overall picture of resource requirement?

Accepted Answer

The bottom-up planning approach involves calculating the resource requirements for each individual set of products or services and then combining them to get an overall picture of resource requirement. This method starts from the specific details and works up to the general level of planning.

Question 3

______ planning approaches can be used for developing a sales and operations plan.

Accepted Answer

Two primary planning approaches are typically used for developing a sales and operations plan: top-down planning and bottom-up planning.

Question 4

Advertising and promotions are options to influence ______.

Accepted Answer

Advertising and promotions are used to influence demand, which is the desire or willingness of consumers to purchase goods or services. It is not a tool for influencing supply, capacity, or workforce.

Question 5

Which planning approach is appropriate for companies that produce a combination of products and services that require similar resources?

Accepted Answer

The answer of Which planning approach is appropriate for companies...

Question 6

Which planning approach is appropriate for companies whose mix of products and service offerings change from period to period?

Accepted Answer

Bottom-up planning is appropriate for companies whose mix of products and service offerings change from period to period because it allows for greater flexibility and customization in the planning process.

Question 7

Which of the following strategies is appropriate for manufacturing organizations that have stable market demand or production levels?

Accepted Answer

A level strategy is appropriate for manufacturing organizations with stable market demand or production levels, as it involves maintaining a consistent production rate regardless of demand fluctuations. This allows the organization to avoid excess inventory or backlog, leading to cost savings and more efficient use of resources.

Question 8

Which of the following is one of the approaches used for developing a sales and operations plan?

Accepted Answer

Bottom-up planning is an approach used in developing a sales and operations plan, where the plan is built based on input and forecasts from the lower levels of the organization, such as individual sales forecasts or production capabilities, before aggregating them at higher levels for a comprehensive plan.

Question 9

The final output of the ______ is a recommendation to senior management on a sales and operations plan that include both the trade-offs and the financial and nonfinancial implications of the plan.

Accepted Answer

The answer of The final output of the ______ is...

Question 10

The aim of the ______ strategy is to maintain a constant production rate.

Accepted Answer

The level strategy aims to maintain a constant production rate, regardless of fluctuations in demand. This can be achieved by building up inventory during low demand periods and using that inventory to meet demand during high demand periods. This helps to minimize the costs associated with fluctuations in production and can provide a more stable work environment for employees. Therefore, the best choice is A) Level strategy.

Question 11

Companies that produce lawn mowers to meet demand during the summer months can also manufacture snow blowers for the winter.This approach is an example of ______.

Accepted Answer

Developing counter-seasonal products and services involves creating products that can be sold during the slow seasons for a particular product or service. In this case, lawn mower companies are creating a new product, snow blowers, to sell during the winter months when demand for lawn mowers is low. This allows them to keep their production lines busy and generate revenue during an off-peak period.

Question 12

Which of the following is NOT one of the sales and operations planning strategies?

Accepted Answer

The three main sales and operations planning strategies are level, chase, and mixed strategies. Product strategy is not one of the main strategies.

Question 13

Which of the following is based on the assumption that management can create accurate tactical plans based on the overall aggregate forecast and then divide the resources across the individual products and services during the detailed operational planning and control activities?

Accepted Answer

The answer of Which of the following is based on...

Question 14

A ______ is a customer order that a company accepts in one period but promises to deliver at a later point in time.

Accepted Answer

A backorder is a customer order that a company accepts but is unable to fulfill at the time the order is placed. The company accepts the order and promises to deliver the product at a later time when it becomes available. Option A (delivery order) refers to an order that is ready for delivery or has already been delivered. Option B (return order) refers to a customer returning a product to the company. Option D (buyback order) refers to a company repurchasing its own stock from investors.

Question 15

Consider that a company's aggregate demand for a product over a 5-month period is 30,000,and there are a total of 125 working days in that period.Under level production strategy,the company will produce ______ units per day.

Accepted Answer

The answer of Consider that a company's aggregate demand for...

Question 16

______ deals with evaluating the financial feasibility of the demand and supply plans developed in the previous stages of S&OP planning in terms of ROA,profits,revenue,and working capital investments.

Accepted Answer

Financial planning involves evaluating the financial feasibility of the demand and supply plans developed in the previous stages of S&OP planning in terms of ROA, profits, revenue, and working capital investments. It helps in identifying the resources required to achieve the desired level of production and sales and ensures that the financial goals of the organization are aligned with the operational plans.

Question 17

Which of the following is a disadvantage of the level strategy of sales and operations planning?

Accepted Answer

The level strategy involves maintaining a steady production rate regardless of changes in demand. This can result in higher levels of inventory during periods of low demand, leading to increased storage costs and risks of obsolescence or damage.

Question 18

In the sales and operations planning process,which of the following is an option for influencing supply?

Accepted Answer

The use of subcontracting is an option for influencing supply in the sales and operations planning process. Subcontracting involves outsourcing some of the production or manufacturing functions to other companies. It can help increase the capacity of the supply chain and improve the flexibility of the production process. This can be a good option when there is an unexpected increase in demand or when there are capacity constraints within the company. Price, backorders and reservation systems, and advertising and promotions are not options for influencing supply in the sales and operations planning process. Price can influence demand, but not supply. Backorders and reservation systems can help manage demand, but do not influence supply. Advertising and promotions can help increase demand, but do not directly influence supply.

Question 19

In the sales and operations planning process,the ______ adopt a reactive approach to match supply with demand.

Accepted Answer

The options to influence supply are the most relevant to adopt a reactive approach to match supply with demand. These options may include adjusting production output, increasing or decreasing inventory levels, and changing sourcing strategies to ensure the availability of materials and resources needed to meet demand. The other options (A, B, and D) are more related to proactive strategies to influence demand or optimize revenue and costs, rather than reacting to demand fluctuations.

Question 20

In the sales and operations planning process,the options to influence demand adopt a ______ approach to match supply with demand.

Accepted Answer

In the sales and operations planning process, a proactive approach is best to match supply with demand. A proactive approach involves forecasting demand and actively managing promotions, pricing, and other factors to influence demand in a way that aligns with the company's production capacity. This allows for a better balance between supply and demand and helps to avoid stockouts or excess inventory. Reactive approaches are less effective as they rely on reacting to changes in demand after they occur, leading to inefficient production and potential customer dissatisfaction.

Quiz 20: Sales and Operations Planning