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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 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.
 Reduce the production plan in the first period to free up capacity for the past-due orders
 Maintain the existing approach for developing the production and operational plans.

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

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

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 III
 I and II
 I
 I, II and III

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

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

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

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

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

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

The goal of S&OP process is ?

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

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

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

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

 A production plan cannot be used for one-of-a-kind products that have not been assigned to a product
 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

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

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

Sales are linked to the distribution network by ?

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

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

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

 Report only out-of-tolerance conditions, with further detail available.
 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

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

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

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

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

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

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

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

 I and II
 II
 III
 I

The S&OP Planning Horizon should be set at ?

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

S&OP primarily ?

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