OPM CH 8 HW

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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? 550 100 450 600 1,000

600

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

False

All companies have a formal S&OP process.

False

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

False

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

False

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

False

The master production schedule is a crucial input into the aggregate operations plan.

False

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

False

The sales and operations planning process is made up of a variety of analytical techniques which interact to produce short and intermediate term goals.

False

Top management would typically build the spreadsheets for the S&OP review. (In this context think about: would they build the spreadsheets for the S&OP or would someone else such as the master scheduler or materials manager prepare the charts and give them to top management for review?)

False

There are typically metrics for performance in the S&OP process. They should include: Production capacity performance Production Plan accuracy, Demand Plan accuracy, Financial Plan accuracy, Customer Service Forecast accuracy Customer service/delivery performance Financial plan performance B, C &D only

Production Plan accuracy, Demand Plan accuracy, Financial Plan accuracy, Customer Service

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 MTD demand actual against the demand "plan of record" Review mid-month metrics for performance with management 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.

True

Binghamton University could use an S&OP process.

True

Costs incurred in hiring, training and laying off personnel are considered relevant aggregate operations planning costs.

True

S&OP process would apply in any service organization.

True

The aggregate operations planning variable "production rate" refers to the number of units completed per unit of time.

True

The sales and operations planning process consists of a series of meetings.

True

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

True

The best time for an S&OP review is: at the end of each month at the beginning of each financial quarter at the beginning of each month at the end of each quarter

at the beginning of each month

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

12-24 months

Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Demand Plan 25 22 23 25 28 22 22 23 28 29 30 17 Production Plan Inventory Plan Starting Inventory 20 Ending Inventory 8 Given this Demand Plan, in a MTS environment what would be the average monthly Production Plan? (To the nearest single decimal). Note that the starting inventory (20) is as of the end of Dec in prior year and ending inventory is planned at the end of the upcoming Dec. 22.5 24.5 26.7 23.5

23.5

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 2700 3700

2950

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

6-12


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