Read the overview below and complete the activities that follow. Generally speak
ID: 469490 • Letter: R
Question
Read the overview below and complete the activities that follow.
Generally speaking, organizations cannot predict exactly the quantity and timing of demands for specific products or services months in advance due to seasonal variations, market changes, and other conditions. Even so, they typically must assess their capacity needs (e.g., labor, inventories) and costs months in advance in order to be able to handle demand.
CONCEPT REVIEW:
Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of 2 to 12 months, although in some companies it may extend to as much as 18 months. The goal of aggregate planning is to achieve a production plan that will effectively utilize the organization’s resources to match expected demand. Planners must make decisions on output rates, employment levels and changes, inventory levels and changes, back orders, and subcontracting in or out. They do this for products that are grouped (i.e., aggregated) into categories rather than for individual products.
Some organizations use the term “sales and operations planning” instead of aggregate planning for intermediate-range planning. Sales and operations planning is defined as making intermediate-range decisions to balance supply and demand, integrating financial and operations planning. Because the plan affects functions throughout the organization, it is typically prepared with inputs from sales (demand forecasts), finance (financial constraints), and operations (capacity constraints). The sales and operations plan is important planning information that will have impacts throughout the supply chain, and it should be shared with supply chain partners, who might also have valuable inputs.
1.
______ typically is stated in terms of aggregate units for an intermediate-range time horizon.
select
select
The job sequence
The material requirements plan
The master production schedule
The employee work schedule
The sales and operations plan
selectThe job sequenceThe material requirements planThe master production scheduleThe employee work scheduleThe sales and operations plan
2.
The aggregate plan provides input into ___________ and production control systems.
select
select
process design
corporate strategy
product development
forecasting
scheduling
selectprocess designcorporate strategyproduct developmentforecastingscheduling3.
Aggregation for manufactured goods is typically based on _______________.
select
select
groups of similar products
customer requests
marketing considerations
supplier networks
warehouse operators
selectgroups of similar productscustomer requestsmarketing considerationssupplier networkswarehouse operators4.
The aggregate plan typically attempts to
select
select
maximize labor utilization.
ensure the supply remains less than demand in order to keep prices up.
produce a supply that exceeds demand in order to keep the sales force busy.
minimize the cost of matching supply and demand.
determine the firm's long-term capacity requirements.
selectmaximize labor utilization.ensure the supply remains less than demand in order to keep prices up.produce a supply that exceeds demand in order to keep the sales force busy.minimize the cost of matching supply and demand.determine the firm's long-term capacity requirements.5.
Sales and operations planning requires
select
select
coordination across functional areas.
weekly workforce scheduling.
a marketing budget.
master scheduling.
detailed short-range forecasts.
selectcoordination across functional areas.weekly workforce scheduling.a marketing budget.master scheduling.detailed short-range forecasts.6.
A production planning strategy that matches supply and demand by hiring and laying off employees as the demand varies is the
select
Explanation / Answer
1. The sales and operations plan
2. Scheduling
3.groups of similar products
4.minimize the cost of matching supply and demand.
5. coordination across functional areas.
6. Capacity Planning
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