Question 1

In an overview of the major operations planning activities in a typical organization,which of the following activities precedes aggregate sales and operations planning?

Accepted Answer

The answer of In an overview of the major operations...

Question 2

Which of the following methodologies is used to verify that production and warehouse facilities,equipment and labor are available when needed?

Accepted Answer

Rough-cut capacity planning is used to verify that production and warehouse facilities, equipment, and labor are available when needed by comparing the production plan to available capacity.

Question 3

The aggregate operations planning variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

Accepted Answer

This is correct - inventory on hand refers to the amount of inventory that was not used or sold in the previous time period and is still available for use.

Question 4

Capacity planning is the step in the aggregate operations planning process that immediately follows development of the master production schedule.

Accepted Answer

Capacity planning typically precedes the development of the master production schedule, as it involves determining the resources needed to meet production goals.

Question 5

The master production schedule is a crucial input into the aggregate operations plan.

Accepted Answer

The answer of The master production schedule is a crucial...

Question 6

Because a Level production strategy does not require adjustment in the short-to-medium term,aggregate sales and operations planning is not required.

Accepted Answer

Although a level production strategy does aim to maintain a constant production rate, aggregate sales and operations planning is still required to ensure that demand and supply are aligned in the long-term. This includes forecasting demand, adjusting inventory levels, and coordinating production and workforce capacity.

Question 7

In an overview of the major operations planning activities in a typical organization,which of the following activities immediately follows aggregate sales and operations planning in a manufacturing operation?

Accepted Answer

Master scheduling is the next major activity that follows aggregate sales and operations planning in a manufacturing operation. Master scheduling involves developing a detailed plan for production over a specific time frame based on the sales forecast generated during the aggregate sales and operations planning stage. It takes into account the availability of resources, capacity, and inventory levels to ensure that production meets customer demand. Process planning, strategic capacity planning, materials requirements planning, and order scheduling are all activities that follow master scheduling in the production process.

Question 8

The aggregate operations planning variable "workforce Level" refers to the number of workers needed to accomplish the planned production.

Accepted Answer

Workforce level refers to the number of workers needed to accomplish the planned production.

Question 9

In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

Accepted Answer

Competitors' behavior and economic conditions are external factors that the firm cannot control but need to consider when developing their aggregate operations plan. The market demand and inventory levels, subcontractor capacity and current workforce, and raw material availability and inventory levels are all internal factors that the firm has more control over and can adjust as needed during the planning process. Economic conditions and current physical capacity could be either internal or external factors depending on the specific context.

Question 10

In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

Accepted Answer

External inputs to aggregate operations planning include factors outside the firm's control, such as raw material availability and competitor's behavior.

Question 11

The essence of yield management is the ability to manage supply.

Accepted Answer

The answer of The essence of yield management is the...

Question 12

Which of the following methodologies takes the end product requirements from the master production schedule and breaks them down into their component parts and subassemblies to create a materials plan?

Accepted Answer

Materials requirement planning (MRP) is the methodology that takes end product requirements from the master production schedule and breaks them down into their component parts and subassemblies to create a materials plan. This process helps to ensure that the necessary materials and components are available when needed to meet production goals. Rough-cut capacity planning, capacity requirements planning, order scheduling, and inventory planning are related but different methodologies that focus on other aspects of production planning and control.

Question 13

The aggregate operations planning variable "production rate" refers to the number of units completed per unit of time.

Accepted Answer

The production rate variable in aggregate operations planning does indeed refer to the number of units completed per unit of time.

Question 14

The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?

Accepted Answer

Aggregate operations planning involves determining the optimal production rates, workforce levels, and amount of inventory on hand to meet demand while minimizing costs. Therefore, option A is the correct choice. Option B only focuses on inventory and financing costs, while option C and D are not directly related to the optimization of production and inventory levels. Option E includes operational costs but does not account for workforce levels or inventory on hand.

Question 15

In services,once the aggregate staffing Level is determined,the focus is on short-term workforce and customer scheduling.

Accepted Answer

Once the aggregate staffing level is determined in services, the focus shifts to short-term workforce and customer scheduling to ensure that the right number of employees are available to meet the demands of the customers.

Question 16

Workforce Level refers to the rated pay scale of the production workers.

Accepted Answer

Workforce Level typically refers to the skill level or experience level of an entire workforce, rather than just the pay scale of production workers.

Question 17

In conducting aggregate operations planning there are a number of required inputs.Which of the following are considered inputs internal to the firm?

Accepted Answer

Current physical capacity and current workforce are considered internal inputs to the firm as they are within the control of the organization. Inventory levels, economic conditions, market demand, subcontractor capacity, competitor behavior, and raw material availability are external inputs that the firm has less control over.

Question 18

Which of the following is a production planning strategy presented in the textbook?

Accepted Answer

The production planning strategy presented in the textbook is the Level strategy, which maintains a steady production rate regardless of demand fluctuations. This strategy aims to reduce inventory costs and avoid overproduction or underproduction. The other strategies listed (Strategic, Balanced, Synchronous, Optimal) are not specifically mentioned as production planning strategies in the textbook.

Question 19

A "rate fence" is a person who purchases a service at list price and later sells the service at a premium to another person.This practice is often illegal or restricted as in "scalping" of tickets to a sporting event.

Accepted Answer

A rate fence is the opposite of what is described in the statement. A rate fence purchases a service at a lower price, such as a discounted rate, and resells it at a higher price to another person. However, this practice may still be restricted or prohibited by the service provider.

Question 20

Yield management is an effective tool that can be used to shape demand patterns.

Accepted Answer

Yield management is a pricing strategy that adjusts prices according to demand and supply to maximize revenue. By offering lower prices during off-peak periods, businesses can attract customers who might not be willing to pay regular prices during peak seasons. This can shape demand patterns and help businesses manage their inventory, pricing, and marketing strategies. Therefore, yield management is an effective tool for shaping demand patterns.

Quiz 16: Aggregate Sales and Operations Planning

In an overview of the major operations planning activities in a typical organization,which of the following activities precedes aggregate sales and operations planning?

Which of the following methodologies is used to verify that production and warehouse facilities,equipment and labor are available when needed?

The aggregate operations planning variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

Capacity planning is the step in the aggregate operations planning process that immediately follows development of the master production schedule.

The master production schedule is a crucial input into the aggregate operations plan.

Because a Level production strategy does not require adjustment in the short-to-medium term,aggregate sales and operations planning is not required.

In an overview of the major operations planning activities in a typical organization,which of the following activities immediately follows aggregate sales and operations planning in a manufacturing operation?

The aggregate operations planning variable "workforce Level" refers to the number of workers needed to accomplish the planned production.

In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

The essence of yield management is the ability to manage supply.

Which of the following methodologies takes the end product requirements from the master production schedule and breaks them down into their component parts and subassemblies to create a materials plan?

The aggregate operations planning variable "production rate" refers to the number of units completed per unit of time.

The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?

In services,once the aggregate staffing Level is determined,the focus is on short-term workforce and customer scheduling.

Workforce Level refers to the rated pay scale of the production workers.

In conducting aggregate operations planning there are a number of required inputs.Which of the following are considered inputs internal to the firm?

Which of the following is a production planning strategy presented in the textbook?

A "rate fence" is a person who purchases a service at list price and later sells the service at a premium to another person.This practice is often illegal or restricted as in "scalping" of tickets to a sporting event.

Yield management is an effective tool that can be used to shape demand patterns.