OPM 311 S&OP Questions

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? 1,300 1,200 1,340 1,500 1,540

1,340

There are typically metrics for performance in the S&OP process. They should include: Customer service/delivery performance Forecast accuracy All of the above by product family B, C &D only Production capacity performance Financial plan performance

All of the above by product family

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

F

All companies have a formal S&OP process.

F

Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.

F

Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.

F

GE is credited with the early S&OP process design.

F

S&OP and SIOP are different with SIOP providing more focus on inventory.

F

The planning cycle for S&OP is typically done quarterly in high performance manufacturing businesses.

F

Top management would typically build the spreadsheets for the S&OP review.

F

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? Skill maintenance Chase Level Full employment Stable workforce, variable work hours

Level

In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm? Current physical capacity and market demand Subcontractor capacity and inventory levels Raw material availability and competitor's behavior Inventory levels and market demand Current workforce and economic conditions

Raw material availability and competitor's behavior

Typically there is a weekly review meeting in the S&OP process. This is referred to as the Demand Review. This meeting is designed to: Review mid-month metrics for performance with management Review MTD demand actual against the demand "plan of record" Preview production levels as compared to the Demand Plan "plan of record". Communicate the "plan of record" to the organization.

Review MTD demand actual against the demand "plan of record"

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

T

Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.

T

S&OP process would apply in any service organization.

T

The aggregate operations planning variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

T

The aggregate operations planning variable "workforce level" refers to the number of workers needed to accomplish the planned production.

T

There are often multiple levels in an S&OP process in larger manufacturing companies.

T

The best time for an S&OP review is:

at the beginning of each month

The normal planning horizon for an S&OP process in a manufacturing firm is: 3-5 years 3-6 months 12-24 months 1-9 months

12-24 months

If, in an MTS organization there was a starting inventory of 500 units, and the demand plan for the next 6 months was: 500, 600, 800, 900, and 400 and the target inventory for the end of this planning horizon was 250, what would the production plan total be for these 6 months? 2950 3200 3700 2700

2950

The recommended number of product groupings in an S&OP process is: 6-12 1-4 10-20 2-5

6-12

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? 100 450 550 1,000 600

600