OPMA 3306-Chapter 8- Practice Questions

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

A. Process planning

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

C. Vehicle loading

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?

B. Workforce scheduling

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?

D. Vehicle capacity planning

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

A. Workforce levels and inventory on hand

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

B. Raw material availability and competitor's behavior

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

A. Competitor behavior and economic conditions

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

C. Current physical capacity and current workforce

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

A. Level

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

D. Stable workforce, variable work hours

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?

B. Chase

Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs and allowing lost sales is which of the following production planning strategies?

C. Level

Which of the following costs are relevant to aggregate operations planning?

C. Backordering costs

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement?

C. 1,340

Demand = 1,200; 20% of demand = 240; Inventory = 100; produce 1,200 + 240 - 100 = 1,340.

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000, and the necessary safety stock is 10% of the demand forecast, which of the following is the production requirement?

B. 600

Demand = 1,000; 10% of demand = 100; Inventory = 500; produce 1,000 + 100 - 500 = 600

Which of the following methods discussed in the text requires generating several alternative aggregate plans?

E. Cut and try

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

B. Inventory is perishable

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

E. Demand is stable and close to capacity

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

C. The product can be kept to be sold when demand is stronger

Which of the following is not one of the "number of interesting issues that arise in yield management?"

B. Designing yield management programs that cannot be imitated by a competitor

The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for the intermediate term of 3 to 18 months.

TRUE

The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.

FALSE

The aggregate operations plan differs in virtually every aspect in service organizations as contrasted with manufacturing organizations.

FALSE

The sales and marketing plans are typically developed separately from the aggregate operations plan as a way of cross-checking results to insure the integrity of assumptions about the future.

FALSE

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

FALSE

Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain.

FALSE

Accurate medium-range planning increases the likelihood of operating within the limits of a budget.

TRUE

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

TRUE

The International Aggregate Planning Society (IAPS) has developed aggregate operations planning guidelines which are followed by a majority of manufacturing firms.

FALSE

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

TRUE