Question 1

In a services organization strategic capacity planning follows process planning.

Accepted Answer

A) True 
 B)False

Question 2

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?

Accepted Answer

A)  Process planning
B)  Workforce scheduling
C)  Master scheduling
D)  Materials requirements planning
E)  Order schedulingF) D) and E)
G) A) and E)

Question 3

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?

Accepted Answer

A)  Process planning
B)  Strategic capacity planning
C)  Vehicle dispatching
D)  Vehicle capacity planning
E)  Warehouse receipt planningF) C) and E)
G) B) and E)

Question 4

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

Accepted Answer

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 operationsF) A) and D)
G) B) and C)

Question 5

Which of the following is considered a "pure" production planning strategy?

Accepted Answer

A)  Variable workforce,stable work hours
B)  Lag demand
C)  Level playing field
D)  Stable workforce,variable work hours
E)  Product warehouseF) B) and E)
G) All of the above

Question 6

The Aggregate Operations Plan variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

From an operational perspective yield management is most effective under which of the following circumstances?

Accepted Answer

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 profitableF) B) and D)
G) A) and E) B

Question 9

The sales and operations planning process consists of a series of meetings.

Accepted Answer

A) True 
 B)False  True

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

A) True 
 B)False

Question 13

Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.

Accepted Answer

A) True 
 B)False

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

Foregone profit margins are considered as relevant aggregate operations planning costs.

Accepted Answer

A) True 
 B)False

Question 16

Aggregate sales and operations planning occur in a company about every 3 to 18 months.

Accepted Answer

A) True 
 B)False

Question 17

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and
inventory on hand.

Accepted Answer

A) True 
 B)False

Question 18

rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.

Accepted Answer

A) True 
 B)False  False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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?

Accepted Answer

A)  Stable workforce,variable work hours
B)  Chase
C)  Level
D)  Meeting demand
E)  Minimizing inventoryF) A) and D)
G) A) and C)

Exam 8: Sales and Operations Planning

In a services organization strategic capacity planning follows process planning.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is considered a "pure" production planning strategy?

Correct AnswerverifiedShow Answer

The Aggregate Operations Plan variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

From an operational perspective yield management is most effective under which of the following circumstances?

Correct AnswerverifiedB

The sales and operations planning process consists of a series of meetings.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Foregone profit margins are considered as relevant aggregate operations planning costs.

Correct AnswerverifiedShow Answer

Aggregate sales and operations planning occur in a company about every 3 to 18 months.

Correct AnswerverifiedShow Answer

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.

Correct AnswerverifiedShow Answer

rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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B

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True

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False

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