Chap016 - Chapter 16 - Aggregate Sales and Operations...

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Chapter 16 - Aggregate Sales and Operations Planning Chapter 16 Aggregate Sales and Operations Planning True / False Questions 1. The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for the intermediate term of 3 to 18 months. TRUE Level: Easy 2. The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic. FALSE Level: Easy 3. The objective of the aggregate operations plan is to minimize the cost of resources required to meet demand over the intermediate term of 3 to 18 months. TRUE Level: Easy 4. The aggregate operations plan differs in virtually every aspect in service operations as contrasted with manufacturing operations. FALSE Level: Easy 16-1
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Chapter 16 - Aggregate Sales and Operations Planning 5. The sales and marketing plans are typically developed separately from the aggregate operations plan as a way of cross-checking results to insure the integrity of assumptions about the future. FALSE Level: Easy 6. Aggregate sales and operations planning occurs in a company about every 3 to 18 months. FALSE Level: Easy 7. Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain. FALSE Level: Medium 8. Accurate medium-range planning increases the likelihood of operating within the limits of a budget. TRUE Level: Easy 9. The main purpose of the aggregate production plan is to specify the optimal combination of production rate, workforce Level and inventory on hand. TRUE Level: Easy 16-2
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Chapter 16 - Aggregate Sales and Operations Planning 10. The International Aggregate Planning Society (IAPS) has developed aggregate operations planning guidelines which are followed by a majority of manufacturing firms. FALSE Level: Easy 11. The sales and operations planning process consists of a series of meetings. TRUE Level: Medium 12. 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 Level: Medium 13. A common strategy for firms producing seasonally cyclical products is to develop and produce complimentary products with the opposite seasonality. TRUE Level: Easy 14. Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs. TRUE Level: Easy 16-3
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Chapter 16 - Aggregate Sales and Operations Planning 15. The aggregate operations plan is developed from the master production schedule (MPS) and the rough-cut capacity plan. FALSE Level: Easy 16. The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans. FALSE
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This note was uploaded on 07/17/2011 for the course MBA 587 taught by Professor None during the Spring '11 term at Missouri (Mizzou).

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Chap016 - Chapter 16 - Aggregate Sales and Operations...

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