OPM CH 8 HW
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
