Chapter 8 - Sales and Operations Planning

The widespread scientific application of yield management began within what industry? a. Airline b. Military c. Construction d. Automotive e. Costs of changing the production rate

a. Airline

Which of the four costs relevant to aggregate production planning is the most difficult to accurately measure? a. Backordering costs b. Basic production costs c. Inventory holding costs d. Marketing costs e. Chase strategy

a. Backordering costs The costs associated with backorders/shortages are particularly difficult to quantify because they may have a long-term effect that is difficult to predict.

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? a. Chase strategy b. Mixed strategy c. Mobile workforce strategy d. Labor outsourcing e. Level strategy

a. Chase strategy

The essence of yield management is the ability to manage what? a. Demand b. Pricing logic c. Relationships d. Output e. Resources

a. Demand

Which of the following is a production planning strategy presented in the textbook? a. Level b. Strategic c. Balanced d. Synchronous e. Optimal

a. Level

What category of planning covers a period from a day to six months, with daily or weekly time increments? a. Immediate planning b. Short-range planning c. Medium-range planning d. Long-range planning e. Strategic planning

b. Short-range planning

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? a. Immediate planning b. Short-range planning c. Medium-range planning d. Long-range planning e. Strategic planning

c. Medium-range planning

From an operational perspective yield management is least effective under which of the following circumstances? a. Demand can be segmented by customer b. The product can be sold in advance c. The product can be kept to be sold when demand is stronger d. Fixed costs are high and variable costs are low e. Demand is highly variable

c. The product can be kept to be sold when demand is stronger

Under what type of demand is yield management most effective? a. Stable b. Slightly variable c. Electronic consumer goods d. Highly variable

d. Highly variable