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

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

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

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
 Up to the planning time fence
 Across the entire planning horizon
 Within the demand time fence

The goal of S&OP process is ?

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

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

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

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

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

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

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

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

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

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
 I and III
 I and II
 I, II and III

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

 III
 I and II
 II
 I

S&OP primarily ?

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

Sales are linked to the distribution network by ?

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

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

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

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

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

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

 detailed capacity requirements planning.
 input/output control.
 rough-cut capacity planning.
 resource 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 20 workers
 No one is hired.
 Fired 19 workers
 Hired 5 workers

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
 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 production plan is the time-phased plan of overall output, and it may be stated in terms of unit

The S&OP Planning Horizon should be set at ?

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