Question 1

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 a planning method in which the planning horizon is continually moving forward by adding another period as the current period is completed. In this case, the planning horizon has moved forward by one month from last month's projections to this month's projections, which aligns with the definition of a rolling planning horizon.

Question 2

Regular production costs $25 per unit and selling a unit represents a cash inflow of $30 per unit. Assume that all units reflected on the forecast will be sold. What is the cumulative net cash flow at the end of April?
 $$\begin{array} { | l | c | c | } 
\hline { \text { Month } } & \text { Forecast } & \text { Regular Production } \
\hline \text { Tanuary } & 250 & 250 \
\hline \text { February } & 200 & 200 \
\hline \text { March } & 300 & 300 \
\hline \text { April } & 400 & 400 \
\hline
\end{array}$$

Accepted Answer

The answer of Regular production costs $25 per unit and...

Question 3

Your book describes three phases in the implementation of sales and operations planning in an organization. What are the three phases and what takes place in each?

Accepted Answer

The answer of Your book describes three phases in the...

Question 4

There are three phases to sales and operations planning implementation. The first phase, during which employees are trained, information systems implemented, and ideal products are identified for initial efforts is called ________.

Accepted Answer

The answer of There are three phases to sales and...

Question 5

Describe the differences between level, chase, and mixed production plans. Use the forecast in the table to show the differences by creating a plan of each type. There is no beginning inventory and regular production capacity is 350 units. Overtime costs $10 extra and is limited to 50 units per month. Subcontracting is limited to 100 units per month and costs $15 per unit. Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory. There is room for only 100 units in inventory.
 $$\begin{array} { | l | c | } 
\hline { \text { Month } } & \text { Forecast } \
\hline \text { Tanuary } & 250 \
\hline \text { February } & 300 \
\hline \text { March } & 500 \
\hline \text { April } & 350 \
\hline
\end{array}$$

Accepted Answer

The answer of Describe the differences between level, chase, and...

Question 6

An organization with twenty people developing sales and operations plans might receive twenty different proposals. What are some factors an organization might consider when deciding among these alternative plans? Provide a ranking for your factors and support your ranking with examples from recent business news media.

Accepted Answer

The answer of An organization with twenty people developing sales...

Question 7

In order for ________ planning to work, the mix of products or services must be essentially the same from one time period to the next or the products must have very similar resource requirements.

Accepted Answer

The answer of In order for ________ planning to work,...

Question 8

Create a level plan with a zero ending inventory for the forecast shown in the table. There is no beginning inventory and regular production capacity is 300 units. Overtime costs $15 extra and is limited to 25 units per month and subcontracting is limited to 60 units per month and costs $10 per unit. Back orders cost $50 per unit and there is a cost of $5 per month to hold a unit in inventory. What is the total plan cost above the regular production cost?
 $$\begin{array} { | l | c | l | l | l | l | } 
\hline { \text { Month } } & \text { Forecast } & \text { Regular } & \text { Overtime } & \text { Subcontracting } & \begin{array} { c } 
\text { Ending } \
\text { Inventory }
\end{array} \
\hline \text { January } & 250 & & & & \
\hline \text { February } & 300 & & & & \
\hline \text { March } & 400 & & & & \
\hline \text { April } & 350 & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of Create a level plan with a zero...

Question 9

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

Accepted Answer

While sales and operations planning is a necessary task for all companies, doing it well can actually provide a competitive advantage. Effective sales and operations planning can improve efficiency, reduce costs, optimize inventory, and enhance customer service. This can give a company an edge over its competitors who may not be as proficient in their sales and operations planning processes.

Question 10

A production planner can confirm future capacity requirements based on released or planned orders by referring to a(n)________.

Accepted Answer

The answer of A production planner can confirm future capacity...

Question 11

The Super Bowl is right around the corner and Gowgem Hotels is aquiver with anticipation. They'd like to price their rooms at their three city locations, next to the stadium, near the airport, and in the suburbs, as high as possible but still achieve 100% occupancy. The approach they should take to this opportunity is:
A)yield management.
B)a tiered workforce.
C)a load profile.
D)a chase plan.

Accepted Answer

Yield management involves dynamically adjusting prices according to demand and capacity to achieve maximum profit. This is the approach Gowgem Hotels should take to maximize their profits during the Super Bowl. By analyzing historical data and real-time demand, they can adjust their prices accordingly to achieve 100% occupancy while still pricing their rooms as high as possible. A tiered workforce, load profile, and chase plan are not relevant to pricing hotel rooms for a sporting event.

Question 12

An organization has developed three alternate sales and operations plans for the coming six months and now must choose between them. They should consider:
A)how their plan will impact supply chain partners.
B)what the cash flows are like.
C)how flexible the plan is.
D)All of these are useful criteria for a sales and operation plan.

Accepted Answer

It is important to consider all of these criteria when making a decision about which sales and operations plan to choose. Impact on supply chain partners is important for maintaining strong relationships and ensuring reliable supply. Cash flows are critical for financial stability and growth. Flexibility is important for adapting to unforeseen changes in the market or supply chain. Considering all of these factors will lead to a more comprehensive and informed decision.

Question 13

A(n)________ production plan matches production in each time period with the sales forecast.

Accepted Answer

The answer of A(n)________ production plan matches production in each...

Question 14

Sales and operations plans must be updated as time progresses, so most firms establish a(n)________.

Accepted Answer

The answer of Sales and operations plans must be updated...

Question 15

It costs $12 to make a single unit using regular production and $15 to make a single unit using overtime production. Total overtime production is limited to 500 units for the five month period. The manufacturing plant has a regular production capacity of 250 units per month and has 50 units in inventory at the start of the planning period. There is a $5 per unit charge for holding inventory at the end of each month and a limit of 250 units ending inventory for any period. Develop a minimum cost production plan if the forecast must be met and costs must be minimized.
 $$\begin{array} { | l | c | } 
\hline { \text { Month } } & \text { Forecast } \
\hline \text { Tanuary } & 250 \
\hline \text { February } & 200 \
\hline \text { March } & 300 \
\hline \text { April } & 400 \
\hline \text { May } & 500 \
\hline
\end{array}$$

Accepted Answer

The answer of It costs $12 to make a single...

Question 16

A company pondering the implementation of S&OP should first:
A)build the managerial support and infrastructure needed to make S&OP a success.
B)adopt S&OP as part of the organization's normal planning process.
C)elevate the decision-making authority of the sales and marketing team.
D)decide whether to commoditize the services offered with their products.

Accepted Answer

Before implementing S&OP, it is important to build the necessary support and infrastructure within the company to ensure the success of the process. This includes ensuring buy-in from top-level management, establishing clear roles and responsibilities, and allocating the necessary resources. Without this foundation, S&OP may not be effective in improving the company's planning and decision-making processes.

Question 17

A sales and operations plan that varies both production and inventory levels is called a(n)________ production plan.

Accepted Answer

The answer of A sales and operations plan that varies...

Question 18

Tim subtracted his cash outflows for 2015 from his cash inflows for the same period to arrive at his ________.

Accepted Answer

The answer of Tim subtracted his cash outflows for 2015...

Question 19

Create a minimum cost chase plan for the forecast shown in the table. There is no beginning inventory and regular production capacity is 350 units. Overtime costs $20 extra and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $15 per unit. Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory. There is room for only 100 units in inventory. What is the total plan cost above regular production cost?
 $$\begin{array} { | l | c | l | l | l | l | } 
\hline { \text { Month } } & \text { Forecast } & \text { Regular } & \text { Overtime } & \text { Subcontracting } & \begin{array} { c } 
\text { Ending } \
\text { Inventory }
\end{array} \
\hline \text { January } & 250 & & & & \
\hline \text { February } & 400 & & & & \
\hline \text { March } & 500 & & & & \
\hline \text { April } & 350 & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of Create a minimum cost chase plan for...

Question 20

Describe how both top-down and bottom-up planning work and the situations where one approach is superior to the other.

Accepted Answer

The answer of Describe how both top-down and bottom-up planning...

Quiz 10: Sales and Operations Planning Aggregate Planning