Question 1

________ are designed to be consistent with top management's long-range plans and strategy, and work within the resource constraints determined by earlier strategic decisions.

Accepted Answer

Intermediate plans

Question 2

Short-range plans are usually for less than ________ months.

Accepted Answer

three, or 3

Question 3

Aggregate planning in manufacturing ties organizational strategic goals to workforce schedules.

Accepted Answer

False

Question 4

What is the effort to plan the coordination of demand forecasts with functional areas of the firm and its supply chain?
A) enterprise resource planning
B) material requirements planning
C) capacity planning
D) sales and operations planning
E) new product development

Accepted Answer

Sales and operations planning involves planning the coordination of demand forecasts with functional areas of the firm and its supply chain to ensure alignment of resources and capabilities to meet customer demand. Enterprise resource planning, material requirements planning, capacity planning, and new product development may all be components of sales and operations planning, but do not fully encompass the coordination of demand forecasts with functional areas and supply chain partners.

Question 5

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Accepted Answer

A logical overall unit for measuring sales and output is necessary for effective aggregate planning. It provides a consistent and meaningful way to quantify the demand and production capacity, which is essential for developing an accurate production plan. Common units of measure for sales and output include dollars, units, weight, volume, or time.

Question 6

Frito-Lay uses aggregate planning to match capacity with demand because of the ________ associated with its specialized processes.
A) high variable cost and high fixed cost
B) high variable cost and low fixed cost
C) low variable cost and high fixed cost
D) low variable cost and low fixed cost
E) none of these

Accepted Answer

Frito-Lay likely has low variable costs due to economies of scale in producing large quantities of products, but high fixed costs associated with specialized equipment and facilities needed for their production processes. Aggregate planning helps them efficiently align production capacity with demand fluctuations to manage these costs.

Question 7

Which of the following would most likely fall within the scope of aggregate planning?
A) setting subcontracting levels
B) dispatching
C) capital investments
D) job assignments
E) research and development

Accepted Answer

Aggregate planning involves making decisions about capacity, production, and inventory levels on a high level. Subcontracting levels fall within this category as they relate to capacity planning. The other choices are more operational decisions rather than strategic ones involved in aggregate planning.

Question 8

________ is an approach to determine the quantity and timing of production for the intermediate future.

Accepted Answer

The answer of ________ is an approach to determine the...

Question 9

Under which of the following do planning tasks associated with job assignments, ordering, job scheduling, and dispatching typically fall?
A) short-range plans
B) intermediate-range plans
C) long-range plans
D) mission-related planning
E) strategic planning

Accepted Answer

Planning tasks associated with job assignments, ordering, job scheduling, and dispatching typically fall under short-range plans, as they involve immediate action and day-to-day operations. Intermediate-range plans focus on more mid-term goals such as production planning and inventory management, while long-range plans look at the company's overall direction for several years ahead. Mission-related planning and strategic planning are broader and more overarching in scope.

Question 10

Which of the following is NOT one of the four things needed for aggregate planning?
A) a logical overall unit for measuring sales and output
B) a method to determine the relevant costs
C) a mathematical model that will minimize costs over the intermediate planning period
D) an aggregate demand forecast for an intermediate planning period
E) All of these are needed for aggregate planning.

Accepted Answer

The four things needed for aggregate planning are a logical overall unit for measuring sales and output, a method to determine the relevant costs, an aggregate demand forecast for an intermediate planning period, and a feasible and practical plan. While a mathematical model can be helpful in developing a plan, it is not one of the necessary components for aggregate planning.

Question 11

Which of the following is the term used for intermediate-range capacity planning with a time horizon of three to eighteen months?
A) material requirements planning
B) enterprise resource planning
C) strategic planning
D) aggregate planning
E) job scheduling

Accepted Answer

Aggregate planning is the term used for intermediate-range capacity planning with a time horizon of three to eighteen months. Material requirements planning (MRP) is a technique used for production planning and inventory control, enterprise resource planning (ERP) is a business management software that integrates all areas of a business, strategic planning is a long-term planning process, and job scheduling is a technique used for scheduling individual tasks and operations within a production system.

Question 12

Which of the following would most likely fall under the scope of only an operations manager?
A) research and development
B) new product plans
C) capital investments
D) facility location/capacity
E) setting inventory levels

Accepted Answer

Setting inventory levels is typically within the scope of an operations manager, as it involves managing the day-to-day operations and ensuring that the supply chain is efficient.

Question 13

Aggregate planning occurs over the medium or intermediate future of 3 to 6 months.

Accepted Answer

Aggregate planning typically covers a time frame of 6 to 18 months, focusing on meeting forecasted demand by adjusting production rates, labor levels, inventory levels, and other operational variables.

Question 14

What is the typical time horizon for aggregate planning?
A) less than a month
B) up to 3 months
C) 3 to 18 months
D) over one year
E) over 5 years

Accepted Answer

The typical time horizon for aggregate planning is usually between 3 to 18 months. This allows companies to take into account expected changes in demand and capacity, such as seasonal fluctuations, and adjust their production and workforce accordingly. Options A and B are too short-term for aggregate planning, while options D and E are too long-term.

Question 15

The aggregate planning process usually includes dispatching of individual jobs.

Accepted Answer

The aggregate planning process is a high-level, long-term strategic planning process that determines the overall production plan for a company or organization. It involves determining the optimal levels of production, inventory, and workforce to meet forecasted demand while minimizing costs. Dispatching of individual jobs is part of the operational planning process, which deals with short-term scheduling and execution of specific tasks or assignments.

Question 16

The output of S&OP is called:
A) an aggregate plan.
B) product decisions.
C) supply chain support.
D) a logical unit.
E) a marketplace.

Accepted Answer

The output of S&OP (Sales and Operations Planning) is called an aggregate plan, which provides a high-level view of the organization's production and demand, enabling the company to align its resources to meet future demand. This plan includes information about inventory levels, workforce capacity, and production schedules, serving as the basis for the monthly or quarterly planning meetings in which sales, production, logistics, and finance executives participate.

Question 17

Top executives tend to focus their attention on which type of forecasts?
A) short-range
B) intermediate-range
C) long-range
D) weather
E) the forecast for the next day's absentee levels

Accepted Answer

Top executives tend to focus on long-range forecasts as they are concerned with the overall strategic direction of the company over a longer period of time.

Question 18

Which of the following is NOT an input to S&OP?
A) capacity decisions
B) supply-chain support
C) workforce
D) inventory on hand
E) master production schedule

Accepted Answer

The master production schedule is an output of the S&OP process, not an input. It is derived from the S&OP process to plan specific items to be produced in specific quantities over a certain period. Inputs to S&OP typically include demand forecasts, inventory levels, capacity constraints, and workforce availability, which help in creating a balanced plan.

Question 19

Plans for new product development generally fall within the scope of aggregate planning.

Accepted Answer

Aggregate planning focuses on developing strategies for meeting demand and production capacity for existing products or services. New product development planning is a separate process that falls within the realm of product development and innovation.

Question 20

Under which of the following do planning tasks associated with production planning and budgeting, as well as setting employment, inventory, and subcontracting levels, typically fall?
A) short-range plans
B) intermediate-range plans
C) long-range plans
D) demand options
E) strategic planning

Accepted Answer

Production planning and budgeting, setting employment, inventory, and subcontracting levels are typically associated with intermediate-range plans, as they involve planning for a timeframe of a few months to a year. Short-range plans are typically associated with daily or weekly operations, while long-range plans cover a period of several years. Demand options refer to the different options a company has for managing demand, such as pricing or promotions. Strategic planning involves setting broad goals and direction for the company, and may encompass elements of all the other types of planning.

Quiz 12: Aggregate Planning and Sop

________ are designed to be consistent with top management's long-range plans and strategy, and work within the resource constraints determined by earlier strategic decisions.

Short-range plans are usually for less than ________ months.

Aggregate planning in manufacturing ties organizational strategic goals to workforce schedules.

What is the effort to plan the coordination of demand forecasts with functional areas of the firm and its supply chain?

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Frito-Lay uses aggregate planning to match capacity with demand because of the ________ associated with its specialized processes.

Which of the following would most likely fall within the scope of aggregate planning?

________ is an approach to determine the quantity and timing of production for the intermediate future.

Under which of the following do planning tasks associated with job assignments, ordering, job scheduling, and dispatching typically fall?

Which of the following is NOT one of the four things needed for aggregate planning?

Which of the following is the term used for intermediate-range capacity planning with a time horizon of three to eighteen months?

Which of the following would most likely fall under the scope of only an operations manager?

Aggregate planning occurs over the medium or intermediate future of 3 to 6 months.

What is the typical time horizon for aggregate planning?

The aggregate planning process usually includes dispatching of individual jobs.

The output of S&OP is called:

Top executives tend to focus their attention on which type of forecasts?

Which of the following is NOT an input to S&OP?

Plans for new product development generally fall within the scope of aggregate planning.

Under which of the following do planning tasks associated with production planning and budgeting, as well as setting employment, inventory, and subcontracting levels, typically fall?