OPMA Test 2

The widespread scientific application of yield management began within what industry?

Airline

Which of the following circumstances would make a level aggregate planning approach more attractive than a chase aggregate planning approach?

An increase in the time required to train new employees

Which of the four costs relevant to aggregate production planning is the most difficult to accurately measure?

backordering costs

In the agriculture industry, migrant workers are commonly employed to pick crops ready for harvest. They are hired as needed and are laid off once the crops are picked. The realities of the industry make this approach necessary. Which production planning strategy best describes this approach?

chase strategy

The essence of yield management is the ability to manage what?

demand

Under what type of demand is yield management most effective?

highly variable

Major operations and supply planning activities can be grouped into categories based on the relevant time range of the activity. Into what time range category does sales and operations planning fit?

medium-range planning

What is the term for a more complex production strategy that combines approaches from more than one basic strategy?

mixed strategy

In a yield management system, pricing differences must appear logical and justified to the customer. What is the basis for this justification commonly called?

rate fences

In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be increased if stockout risk is to remain unchanged.

safety stock

What category of planning covers a period from a day to six months, with daily or weekly time increments?

short-range planning

Sales and operations planning is a process that helps firms provide better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a handle on the business.

true