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Currently the firm is using a pure level strategy.It has 60 workers who produce 1200 units per quarter each.The cost per unit is $35.00.The cost of holding 1 unit per quarter is $1.50.Of the following descriptions of the situation, what is true? The quarterly demand information is provided below. Q1:120,000 units, Q2:100,000 units, Q3:80,000 units, Q4:92,000 units

 A backorder occurred only during 1 quarter
 During the first quarter, 22,000 units were back ordered.
 A backorder occurred only during 3 quarter
 Throughout the year, no back orders occur

For a make-to-order product family, to reduce the order backlog requires which of the following: I. Produce more than the sales rate II. Sell less than is being produced III. Cut the lead time

 II
 I
 III
 I and II

What is the focus of the sales and operations planning meeting ?

 Qualitative knowledge
 Previous months numbers
 Planned vs. actual numbers
 Plan for future months

S&OP primarily ?

 Has nothing to do with strategy
 Is totally focused on execution
 Is neither strategic or tactical
 None of the Options

The goal of S&OP process is ?

 To optimize resources to support the companys business objectives
 To create a sales plan for the next 6 month
 To develop an detailed production plan for the next month
 To optimize the delivery of materials to the manufacturing centers

Which of the following approaches can streamline the sales and operations planning review process ?

 Generate reports that show full detail and associated aggregations
 Add additional months to the rolling plan only when necessary
 Delegate the reviews among the demand team
 Report only out-of-tolerance conditions, with further detail available.

What should the length of the master scheduling planning horizon be for a make-to-stock product ?

 Equal to the sales and operations planning horizon
 At least as long as the manufacturing lead time
 Equal to the delivery lead time
 At least as long as the cumulative lead time

The sales and operations planning process attempts to match the company's ?

 .sales,demand
 supply,capacity
 .sales,capacity
 supply,demand

Sales are linked to the distribution network by ?

 demand forecasts.
 transportation costs.
 warehouse management systems.
 rough-cut capacity planning.

The capacity planning technique used at the S&OP planning level is ?

 input/output control.
 resource planning.
 detailed capacity requirements planning.
 rough-cut capacity planning.

ABC Inc.custom makes furniture.It has 20 workers who produce 135 units per quarter each.The cost per unit is $2500.00.If a pure chase strategy is used, how many workers are fired or hired during quarter 2? Be as close as possible.The quarterly demand information is provided below. Q1:3,000 units, Q2:500 units, Q3:4,500 units, Q4:6,000 units

 Hired 5 workers
 Fired 19 workers
 No one is hired.
 Hired 20 workers

The Production Plan (Operations Plan) and the Master Production Schedule should ?

 Be in the same level of granularity
 Be expressed in the same unit of measure
 Be approximately the same level of volume
 Extend over the same planning horizon

The S&OP Planning Horizon should be set at ?

 The cumulative lead time of the produc
 18 months minimum to support business planning
 The lead times for major capital equipment
 The planning time fence plus a factor for order preparation and release

A disagreement between sales and production when modifying the sales and operations plan is most likely to be caused by which of the following?

 Product mix sales always being inaccurate
 No capacity for a two-week shutdown in July
 Sales not considering productions overdue orders
 Sales volume being consistently overstated

Which of the following is most correct regarding the production plan in a make-to-stock environment ?

 The production plan is the time-phased plan of overall output, and it may be stated in terms of unit
 Past-due load in the production plan receives an increased priority by the planners use of the criti
 An overloaded production plan alerts the master scheduler to correct the condition in the master pro
 A production plan cannot be used for one-of-a-kind products that have not been assigned to a product

Stockouts have occurred due to failures by suppliers to ship on schedule, causing extensive backorders. The past-due orders were successfully reduced due to overtime once the parts arrived. What is the best approach for incorporating this information into the sales and operations planning process for the upcoming month?

 Reduce the production plan in the first period to free up capacity for the past-due orders
 Reduce the forecast demand in the first period and replace it with the remaining past-due orders.
 Increase the demonstrated capacity in the first period to reflect the use of overtime.
 Maintain the existing approach for developing the production and operational plans.

In most companies lacking an effective S&OP process, the following applies: I. Communications are often fragmented and incomplete II. The financial community doesn’t believe their earnings projections III. Teamwork can be improve

 I and II
 I, II and III
 I and III
 I

The Sales Forecast should be at a detailed level in which of the following ?

 Across the entire planning horizon
 Within the demand time fence
 From the planning time fence out to the end of the planning horizon
 Up to the planning time fence

Among the following choices, select the disadvantages to using a pure level strategy for aggregate planning 1)High level of excess inventory 2)Incurring subcontracting or overtime costs 3)High cost associated with changing production capacity 4)Incurring Backorder costs

 (1)
 (1), (2), and (4)
 (1) and (2)
 (3) and (4)

The typical planning horizon for the Sales and Operations Planning (S&OP) process covers (Blank) period. (Select for the blank space)

 6~18 months
 30 days
 90~150 days
 18~24 months