ISDS 3115 Chapter 13 Concept Questions

Which of the following plans are the job of the operations​ manager, working with other functional areas of the​ firm?

A) long-range plans
B) intermediate plans
C) short-range plans
D) All​ three: short-range,​ intermediate, and​ long-range plans.

B) intermediate plans

Capacity decisions are most critical to which of the following?

A) intermediate plans
B) sales and operations planning
C) short-range plans
D) long-range plans

D) long-range plans

Job assignments are a focused issue in which of the following?

A) short-range plans
B) long-range plans
C) intermediate plans
D) sales and operations planning

A) short-range plans

Which of the following statements is NOT true regarding the planning process?

A) Short-range plans are usually for less than 3 months
B) Short-range plans are the responsibility of operations personnel
C) Job scheduling is made as part of intermediate plans
D) Long-range plans require policies and strategies related to issues such as capacity and capital investment, facility location, new products and processes, and supply chain development.

C) Job scheduling is made as part of intermediate plans

Aggregate planning is concerned with determining the quantity and timing of production in the

A) short term
B) long term
C) next term
D) intermediate term

D) intermediate term

Which of the following statements is NOT true about S&OP?

A) S&OP is also called an aggregate plan
B) S&OP is used to determine which plans are feasible in the coming months and which are not
C) S&OP is typically done by cross-functional teams that align competing constraints
D) When the resources appear to be substantially at odds with market expectations, S&OP provides advanced warning to top management

A) S&OP is also called an aggregate plan

Which of the following is NOT one of the features that an S&OP process needs to generate a useful aggregate plan?

A) A logical unit for measuring sales and output
B) A method to determine the relevant costs
C) A forecast of demand for a reasonable long-term planning period in aggregate terms
D) A model that combines forecasts and costs

C) A forecast of demand for a reasonable long-term planning period in aggregate terms *Aggregate plans are concerned with the intermediate-term

Which of the following statements is NOT true regarding aggregate plans?

A) For service organizations, an aggregate schedule ties strategic goals to workforce schedules
B) An aggregate plan often examines a 3-to-18-month time horizon
C) Aggregate plans use information regarding individual products rather than product lines
D) An aggregate plan is the output of S&OP

C) Aggregate plans use information regarding individual products rather than product lines

Which of the following statements is NOT true regarding the master production schedule?

A) the master production schedule is a timetable that specifies what is to be made and when
B) the master production schedule provides input to material requirements planning systems
C) the master production schedule is a result of disaggregation
D) the master production schedule is a sales forecast

D) the master production schedule is a sales forecast

What is the process of breaking an aggregate plan into greater detail?

A) decomposition
B) aggregation
C) S&OP
D) disaggregation

D) disaggregation

The objective of aggregate planning is usually to:

A) meet forecast demand while minimizing cost over the planning period
B) provide input to material requirements planning systems
C) to determine which plans are feasible in the coming months and which are not
D) specify what is to be made and when

A) meet forecast demand while minimizing cost over the planning period

Which of the following occurs first within a production planning system?

A) aggregate planning
B) priority scheduling for products
C) detailed work schedules for people
D) master production schedule

A) aggregate planning

Which of the following is NOT a <b>capacity</b> option of aggregate planning?

A) back ordering during high-demand periods
B) varying production rates through overtime or idle time
C) subcontracting
D) changing inventory levels

A) back ordering during high-demand periods

Which of the following is NOT a <b>demand</b> option of aggregate planning?

A) using part-time workers
B) counterseasonal product and service mixing
C) back ordering during high-demand periods
D) influencing demand

A) using part-time workers

Which statement is characteristic of a mixed strategy for aggregate planning?

A) mixed plans are less complex to develop than a level plan
B) mixed plans typically yield a worse trategy than a pure plan
C) mixed plans seek a minimum cost via a combination of 8 planning options
D) mixed plans are less complex to develop than a chase plan

C) mixed plans seek a minimum cost via a combination of 8 planning options

Which of the following would likely result in the LEAST amount of inventory?

A) inventory levels are unaffected by the aggregate plan
B) level strategy
C) mixed strategy
D) chase strategy

D) chase strategy

Successful techniques to control the cost of labor in service firms do NOT include:

A) accurate scheduling of labor-hours to assure quick response to customer demand
B) flexibility of individual worker skills that permits reallocation of available labor
C) an on-call labor resource that can be added or deleted to meet unexpected demand
D) flexibility in the rate of output or hours of work to meet changing supply

D) flexibility in the rate of output or hours of work to meet changing supply

What is the primary aggregate planning vehicle in service industries?

A) inventory
B) labor
C) management
D) capital

B) labor

In a service business with a highly variable demand, the general approach to aggregate scheduling does NOT involve

A) building very modest levels of inventory during slack periods
B) using labor to accommodate most of the changes in demand
C) depleting inventory during slack periods
D) depleting inventory during peak periods

C) depleting inventory during slack periods

What makes aggregate planning particularly complex in the airline industry?

A) the large capital investment cost of each airplane
B) union rules
C) the large number of dependent sites
D) significant hiring costs

C) the large number of dependent sites

Yield management is of interest to organizations having the characteristic of:

A) segmentable demand
B) stable demand
C) high variable costs
D) low fixed costs

A) segmentable demand

What is an alternative name for revenue management?

A) yield management
B) income management
C) price and demand management
D) cash flow management

A) yield management

For organizations that have perishable inventory, which of the following characteristics would NOT make yield management of interest?

A) fluctuating demand
B) service or product cannot be sold in advance of consumption
C) relatively fixed capacity
D) low variable costs and high fixed costs

B) service or product cannot be sold in advance to consumption

Industries traditionally associated with revenue management operate in which quadrant of the Revenue Management Matrix?

A) Quadrant 4: price tends to be variable; use tends to be uncertain
B) Quadrant 2: price tends to be variable; use tends to be predictable
C) Quadrant 1: price tends to be fixed; use tends to be predictable
D) Quadrant 3: price tends to be fixed; use tends to be uncertain

B) Quadrant 2: price tends to be variable; use tends to be predictable