Class 10

Question 1

Define: Sales and Operations Planning

Answer 1

the process of integrating customer-focused marketing plans with the management of operations

Question 2

Define Aggregate operations planning

Answer 2

sales and operations planning is done by this (intermediate term capacity and production planning, usually covering the next 12 months

Question 3

What is the purpose of AOP?

Answer 3

objective is to achieve a production plan that will effectively use the organizations resources to satisfy expected demand

Question 4

What is the difference between a level output and a chase strategy?

Answer 4

level output - variations indemand are met by inventory, subcontracting, and/or backordering. Focus on operational stability: fixed number of workers
Chase Strategy - planned output for any period is equal to the forecast of demand for thaat period. Very low inventories, but very little operational stability: requires considerable flexibility

Question 5

List the 4 demand options for meeting uneven demand

Answer 5

1) pricing
2) promotion
3) backorders
4) new/complementary products

Question 6

List the 5 capacity options for meeting uneven demand

Answer 6

1) hire/lay off workers
2) overtime/slack time
3) part time/temp workers
4) inventory
5) subcontracting

Question 7

what is the equation for determining beginning inventory or backorder between periods in an AOP calculation

Answer 7

X = beginning inventory + (output - Forecast) - Backorder

Question 8

Calculation #5

Answer 8

answers on review sheet

Question 9

Calculation #6

Answer 9

answers on review sheet