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Exam 11: Sales and Operations Planning Aggregate Planning

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Question 31

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What is the purpose of S&OP and what takes place at the strategic,tactical,and detailed planning and control levels?

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Sales and operations planning is a busin...

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Question 32

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Detailed planning and control is riskier than strategic planning.

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Question 33

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Offloading is part of a level strategy employed by services.

Seventy percent of a house painter's business is exterior work and the other thirty percent is interior.The average exterior paint job takes 20 hours of labor and $400 of paint and primer,but the average interior job takes only 6 hours of labor and $75 of paint and primer.If he gets 20 service calls for the coming month,which of the following resource requirements is correct?

This graph of expected sales level and expected output shows:

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?

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

Planning values are used in bottom-up planning,but cannot be used in top-down planning.

Sales and operations planning indicates how the organization will use its tactical capacity resources to meet expected customer demand.

Forty percent of a house painter's business is exterior work and the other sixty percent is interior.The average exterior paint job takes 30 hours of labor and $500 of paint and primer,but the average interior job takes only 6 hours of labor and $80 of paint and primer.If he gets 25 service calls for the coming month and 30 calls for the month after that,which of the following resource requirements is correct?

Planning numbers are somewhat aggregated (month by month) in:

Bottom-up planning should be used when the product/service mix is unstable and resource requirements vary greatly across the offerings.

A company has a sales forecast for the following five months as shown in the table.If they have a beginning inventory of 100 units,what amount should be produced under a level plan in order for them to have an ending inventory of zero units at the end of the five month period?

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?

Which of these is NOT an advantage of linking sales and operations planning throughout the supply chain as mentioned in the book?