Sample Questions For Chapter 14 1 A sales and operations plan for a manufacturing firm is a a staffing plan b a production plan c an operations plan d a process plan

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Sample Questions For Chapter 14 1 A sales and operations plan for a manufacturing firm is a a staffing plan b a production plan c an operations plan d a process plan Powered By Docstoc
					Sample Questions For Chapter 14:

1. A sales and operations plan for a manufacturing firm is:
   a. a staffing plan.
   b. a production plan.
   c. an operations plan.
   d. a process plan.
          Answer: b
2. Which one of the following statements about sales and operations planning is best?
   a. A production plan generally focuses on production rates and inventory holdings, whereas a staffing
        plan focuses on staffing and other labor-related factors.
   b. Reactive alternatives are actions that adjust demand patterns.
   c. Operations and marketing are the only two functional areas that supply inputs for developing
        production and staffing plans.
   d. A level strategy stabilizes inventory levels by adjusting production rates or staff levels to match
        demand levels over the planning horizon.
          Answer: a
3. Which of the following is NOT a typical product family?
   a. A group of customers.
   b. A group of products.
   c. A group of services.
   d. A group of suppliers.
          Answer: d
4. Companies perform aggregation along three dimensions:
   a. products, labor, revenue.
   b. time, revenue, services.
   c. services, labor, time.
   d. time, products, revenue.
          Answer: c
5. The planning horizon for a sales and operations plan is typically:
   a. 0 – 3 months.
   b. 3 – 18 months.
   c. 18 – 36 months.
   d. 36 months – 60 months
          Answer: b
6. Which concern is NOT included in a typical sales and operations plan?
   a. Product family production rates
   b. Purchased materials
   c. Inventory levels
   d. Workforce levels
          Answer: b
7. The meaning of undertime is:
   a. employees work as usual, but they are paid at a lower rate.
   b. employees don’t have enough productive work for the number of hours that they normally work.
   c. employees work more than normal hours, but they are not compensated.
   d. the workweek of some employees is permanently reduced.
          Answer: b
8. Which one of the following is NOT a typical objective of production and staffing plans?
   a. Minimize costs
   b. Maximize customer service
   c. Minimize equipment utilization
      d. Minimize changes in workforce levels
             Answer: c
9.    Which one of the following statements concerning typical objectives of production and staffing plans
      is best?
      a. Improved on-time delivery also means minimizing inventory investment.
      b. Minimizing costs will also minimize changes in the workforce levels.
      c. Maximizing profits also minimizes inventory investment.
      d. Increasing workforce levels may cause lower productivity because new employees typically need
           time to become fully productive.
             Answer: d
10.   Which one of the following statements concerning reactive alternatives is best?
      a. Subcontracting can help overcome short-term capacity shortages by offloading work on other
           producers.
      b. Creating anticipation inventory increases customization and is particularly favored in the service
           industry.
      c. Adjusting workforce levels is preferred when the workforce is skilled and the labor pool is small.
      d. Using overtime capacity usually improves worker productivity.
             Answer: a
11.   Which one of the following is an aggressive alternative for sales and operations planning?
      a. Use seasonal inventories to buffer the manufacturing process from variations in customer demand.
      b. Offer complementary products or services with contracyclical demand requirements.
      c. Use overtime and undertime to change workforce levels.
      d. Use subcontracting to overcome short-term capacity shortages.
             Answer: b
12.   A company is attempting to cope with seasonal demand patterns using an aggressive alternative.
      Which one of the following will NOT help achieve this aim?
      a. Complementary products or services
      b. Adjusting workforce levels
      c. Promotional campaigns
      d. Creative pricing
             Answer: b
13.   Which one of the following statements is best?
      a. Aggressive alternatives adjust demand patterns, whereas reactive alternatives change in response to
           changes in demand.
      b. Overtime and undertime are two ways to change the workforce level rather than its utilization.
      c. Subcontracting during the peak season is called an aggressive strategy because it requires a
           competitive orientation toward suppliers.
      d. Due to the almost limitless number of possible sales and operations plans, it is virtually impossible
           to select a desirable plan without using an optimization procedure such as linear programming.
             Answer: a
14.   I eased my Belvedere into Nick’s Gas Station. The way the attendant ran out to meet me made me
      think that the hammering I heard wasn’t from the 15 martinis I had the night before, but from the
      worn out engine underneath the hood. The car was running on fumes; if I didn’t get a fill-up quick,
      I’d need to breathe into the tank to keep going. The “Out of Gas” sign hit me like a slug from a 38,
      but I didn’t stick around to ask any questions, I headed over to Mack’s Gas and Diner for a fill up, a
      bowl of chili, and a double scotch to help me forget about:
      a. the backorder at Nick’s
      b. the backlog at Nick’s
      c. the dame that asked me to look for her husband.
      d. the stockout at Nick’s
             Answer: d
15. Which one of the following statements on sales and operations planning is best?
    a. Creative pricing is an example of an aggressive sales and operations-planning strategy.
    b. Chase strategies are always the lowest cost alternative but are often not chosen because of other
        factors.
    c. Hallmark relies mainly on an aggressive sales and operations planning strategy to cope with
        uneven demand.
    d. A mixed strategy is one that “mixes” the demand of complementary products to level the aggregate
        demand rate.
          Answer: a
    Table 14.3
    The Harper Company is in the process of production planning for the next four quarters. The
    company follows a policy of a stable workforce and uses overtime and subcontracting to meet
    uneven forecasted demand. Anticipation inventory is also allowed, but not backorders. The
    beginning (or current) inventory is 25 units. As a managerial policy, the firm also wishes to
    have an ending inventory of five units at the end of the fourth quarter.
                                                    Period                      Unused Total
      Alternatives 1            2            3          4       5       6       Capacity Capacity
        Beginning        0.00         2.00         4.00    6.00
        Inventory          25                                                      0       25
         Regular        10.00        12.00        14.00   16.00
           Time            13            2            -       -     -       -      -       15
     1 Overtime         11.00        13.00        15.00   17.00
                            -            -            -       -     -       -      5        5
         Subcontract    12.00        14.00        16.00   18.00
                            -            -            -       -     -       -      5        5
          Regular      999.00        10.00        12.00   14.00
           Time             -           15            -       -     -       -      -       15
     2    Overtime     999.00        11.00        13.00   15.00
                            -            -            5       -     -       -      -        5
         Subcontract   999.00        12.00        14.00   16.00
                            -            1            -       -     -       -      4        5
          Regular      999.00       999.00        10.00   12.00
           Time             -            -           15       -     -       -      -       15
     3    Overtime     999.00       999.00        11.00   13.00
                            -            -            5       -     -       -      -        5
         Subcontract   999.00       999.00        12.00   14.00
                            -            -            5       -     -       -      -        5
          Regular      999.00       999.00       999.00   10.00
           Time             -            -            -      15     -       -      -       15
     4    Overtime     999.00       999.00       999.00   11.00
                            -            -            -       5     -       -      -        5
         Subcontract   999.00       999.00       999.00   12.00
                            -            -            -       5     -       -      -        5

     Requirements         38           18           30       25                   14       125

    The transportation method has been used to develop a suitable plan. The optimal production
    plan, given the demand forecasts, costs, and capacities, is listed above. Given this tableau
    solution, answer the following questions.



16. Use the information in Table 14.3. What is the total cost of the optimal production plan?
    a. Less than or equal to $1,000
    b. Greater than $1,000 but less than or equal to $2,000
    c. Greater than $2,000 but less than or equal to $3,000
    d. Greater than $3,000
           Answer: a
17. Use the information in Table 14.3. What is the anticipation inventory at the end of the first quarter?
    a. 0 units
    b. 1 through 5 units
    c. 6 through 10 units
    d. 11 units and above
           Answer: b
18. Use the information in Table 14.3. According to the optimal production plan, what is the total ending
    inventory in the second quarter? Assume that the plan that uses the least amount of subcontracting is
    used.
    a. One unit
    b. Two units
    c. Three units
    d. Greater than three units
           Answer: d
19. Use the information in Table 14.3. According to the optimal production plan, what is the overtime
    production in the second quarter?
    a. Two units
    b. Three units
    c. Four units
    d. Five units
           Answer: d

				
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