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Q:
(p. 260-263) Explain how yield management works and why some companies are able to use it to manage demand patterns?
Q:
(p. 250) What are the three basic production planning strategies?
Q:
(p. 261) What are the five conditions named in the text that support yield management from an operational perspective?
Q:
(p. 252) Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If beginning inventory is 4,000 units, the demand forecast is 2,900 units, and the required safety stock is 10% of the demand forecast, what is the production requirement? ________________________________
Q:
(p. 252) Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 400 units, the demand forecast is 900 units, and the required safety stock is 10% of the demand forecast, what is the production requirement? _________________________________
Q:
(p. 251) What are the four main categories of cost relevant to aggregate operations planning?
Q:
(p. 262) Which of the following is not one of the "number of interesting issues that arise in yield management?"
A. Pricing structures must appear logical to the customer and justify different prices
B. Designing yield management programs that cannot be imitated by a competitor
C. How to handle variability in customer arrivals, duration, and interval
D. Managing the service process
E. Training workers and managers to work in a yield management environment
Q:
(p. 261) From an operational perspective yield management is least effective under which of the following circumstances? A. Demand can be segmented by customer B. The product can be sold in advance C. The product can be kept to be sold when demand is stronger D. Fixed costs are high and variable costs are low E. Demand is highly variable
Q:
(p. 261) From an operational perspective yield management is least effective under which of the following circumstances? A. Demand can be segmented by customer B. The product can be sold in advance C. Demand is highly variable D. Fixed costs are high and variable costs are low E. Demand is stable and close to capacity
Q:
(p. 261) From an operational perspective yield management is most effective under which of the following circumstances? A. Demand cannot be segmented by customer B. Inventory is perishable C. Fixed costs are low and variable costs are high D. The customer is a "captive" of the system E. The firm doing yield management is very profitable
Q:
(p. 252) Which of the following methods discussed in the text requires generating several alternative aggregate plans?
A. Trial and error
B. Production smoothing
C. Graphing and charting
D. Aggregate plan simulation
E. Cut and try
Q:
(p. 252) Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000, and the necessary safety stock is 10% of the demand forecast, which of the following is the production requirement?
A. 1,000
B. 600
C. 550
D. 450
E. 100
Q:
(p. 252) Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement?
A. 1,200
B. 1,300
C. 1,340
D. 1,500
E. 1,540
Q:
(p. 251) Which of the following costs are relevant to aggregate operations planning?
A. Sunk costs
B. Transaction costs
C. Backordering costs
D. Legal costs
E. Fixed costs
Q:
(p. 251) Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs and allowing lost sales is which of the following production planning strategies?
A. Stable workforce, variable work hours
B. Chase
C. Level
D. Full employment
E. Skill maintenance
Q:
(p. 250) Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies?
A. Stable workforce, variable work hours
B. Chase
C. Level
D. Meeting demand
E. Minimizing inventory
Q:
(p. 251) Which of the following is considered a "pure" production planning strategy?
A. Variable workforce, stable work hours
B. Lag demand
C. Level playing field
D. Stable workforce, variable work hours
E. Product warehouse
Q:
(p. 250) Which of the following is a production planning strategy presented in the textbook?
A. Level
B. Strategic
C. Balanced
D. Synchronous
E. Optimal
Q:
(p. 250) In conducting aggregate operations planning there are a number of required inputs. Which of the following are considered inputs internal to the firm?
A. Inventory levels and economic conditions
B. Market demand and subcontractor capacity
C. Current physical capacity and current workforce
D. Competitor behavior and current workforce
E. Current physical capacity and raw material availability
Q:
(p. 250) In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm?
A. Competitor behavior and economic conditions
B. Market demand and inventory levels
C. Subcontractor capacity and current workforce
D. Economic conditions and current physical capacity
E. Raw material availability and inventory levels
Q:
(p. 250) In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm?
A. Inventory levels and market demand
B. Raw material availability and competitor's behavior
C. Current workforce and economic conditions
D. Current physical capacity and market demand
E. Subcontractor capacity and inventory levels
Q:
(p. 248) The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?
A. Workforce levels and inventory on hand
B. Inventory on hand and financing costs for that inventory
C. The strategic plan and the products available for sale
D. The workforce level and the degree of automation
E. Operational costs and the cash flow to support operations
Q:
(p. 247) In an overview of the major operations planning activities in a typical logistics organization, which of the following activities most immediately follows aggregate sales and operations planning?
A. Process planning
B. Strategic capacity planning
C. Vehicle dispatching
D. Vehicle capacity planning
E. Warehouse receipt planning
Q:
(p. 247) In an overview of the major operations planning activities in a typical service organization, which of the following activities follows aggregate sales and operations planning?
A. Process planning
B. Workforce scheduling
C. Master scheduling
D. Materials requirements planning
E. Order scheduling
Q:
(p. 247) In an overview of the major operations planning activities in a typical logistics organization, which of the following activities follows aggregate sales and operations planning?
A. Process planning
B. Workforce scheduling
C. Vehicle loading
D. Materials requirements planning
E. Order scheduling
Q:
(p. 247) In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning?
A. Process planning
B. Workforce scheduling
C. Master production scheduling
D. Materials requirements planning
E. Order scheduling
Q:
(p. 262) Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.
Q:
(p. 262) A rate fence is a logical justification for different prices for what is essentially the same service.
Q:
(p. 262) A rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later.
Q:
(p. 250) Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.
Q:
(p. 249) Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.
Q:
(p. 263) Yield management is an important tool that can be used to shape demand patterns.
Q:
(p. 261) One of the conditions that makes yield management effective is when inventory is easily stored and held for a time when demand is stronger.
Q:
(p. 262) The essence of yield management is the ability to manage supply.
Q:
(p. 250) Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.
Q:
(p. 248) The aggregate operations planning variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.
Q:
(p. 248) The aggregate operations planning variable "workforce level" refers to the number of workers needed to accomplish the planned production.
Q:
(p. 248) The aggregate operations planning variable "production rate" refers to the number of units completed per unit of time.
Q:
(p. 247) In services, once the aggregate staffing level is determined, the focus is on short-term workforce and customer scheduling.
Q:
(p. 247) The master production schedule is a crucial input into the aggregate operations plan.
Q:
(p. 247) Order scheduling is the step in the aggregate operations planning process that immediately follows material requirements planning.
Q:
(p. 260) Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.
Q:
(p. 247) In a logistics organization vehicle dispatching immediately precedes vehicle loading.
Q:
(p. 247) In a services organization strategic capacity planning follows process planning.
Q:
(p. 252) The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.
Q:
(p. 252) 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.
Q:
(p. 248) The aggregate operations plan is developed from the master schedule and the strategic capacity plan.
Q:
(p. 251) Costs incurred in hiring, training and laying off personnel are considered relevant aggregate operations planning costs.
Q:
(p. 251) Foregone profit margins are considered as relevant aggregate operations planning costs.
Q:
(p. 251) Backordering costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
Q:
(p. 251) Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
Q:
(p. 247) The operations plan should not be updated but should be followed precisely until the longest-term planning horizon has passed.
Q:
(p. 251) Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing.
Q:
(p. 246) The sales and operations planning process is made up of a variety of analytical techniques which interact to produce short and intermediate term goals.
Q:
(p. 246) The sales and operations planning process consists of a series of meetings.
Q:
(p. None) The International Aggregate Planning Society (IAPS) has developed aggregate operations planning guidelines which are followed by a majority of manufacturing firms.
Q:
(p. 248) The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.
Q:
(p. 252) Accurate medium-range planning increases the likelihood of operating within the limits of a budget.
Q:
(p. 247) 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.
Q:
(p. 247) Aggregate sales and operations planning occur in a company about every 3 to 18 months.
Q:
(p. 246) 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.
Q:
(p. 257) The aggregate operations plan differs in virtually every aspect in service organizations as contrasted with manufacturing organizations.
Q:
(p. 246) The objective of the aggregate operations plan is to insure that the marketing and sales plans are realistic.
Q:
(p. 246) 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.
Q:
(p. 226) In infinite queuing theory, the average waiting time in line is denoted by what symbol? _________________________
Q:
(p. 223) A single toll booth on a one-lane bridge is which type of queuing system line structure? _________________________________________
Q:
(p. 223) Standing in line to buy tickets for a basketball game where there are multiple ticket windows involves which type of queuing system Line Structure? _________________________________
Q:
(p. 223) In getting your first driver's license, several steps had to be taken. First, you took the written test. Then you took the driving test. Then your photograph was taken and the license made. What was the queuing system line structure in the Department of Motor Vehicles? ________________________________
Q:
(p. 223) Getting a flu shot from the one campus nurse that is on duty might involve standing in which type of queuing line structure? _____________________________________
Q:
(p. 223) Buying items at a department store where there are a large number of checkout counters features which type of queuing system line structure? ______________________________________________
Q:
(p. 223) Joining a line at an airport shoeshine stand where there are five people shining shoes puts you in which type of queuing system line structure? ______________________________________________________
Q:
(p. 226) In infinite queuing theory, the average number in the waiting line divided by the average arrival rate yields what measure of waiting line performance? _________________________________
Q:
(p. 220) When arrivals occur in a purely random fashion at a service facility, the distribution of the number of arrivals per unit of time forms which kind of distribution? ___________________
Q:
(p. 219) When arrivals occur in a purely random fashion at a service facility, what kind of distribution does a plot of interarrival times yield? ___________________________
Q:
(p. 212) In the service-system design matrix, what kind of production efficiency is expected from a service encounter designed to be "face-to-face loose specs?" ______________________________________
Q:
(p. 212) Which of the following is considered a high-contact service operation?
A. On-line brokerage house
B. Internet sales for a department store
C. Physician practice
D. Telephone life insurance sales and service
E. Automobile repair
Q:
(p. 215) There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?
A. Talent
B. Teamwork
C. Trust
D. Treatment
E. Time
Q:
(p. 215) There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?
A. Task
B. Time
C. Teamwork
D. Trust
E. Talent
Q:
(p. 212) In the service-system design matrix, an internet and on-site technology service encounter is expected to have which of the following?
A. High sales opportunity
B. High degree of customer/server contact
C. Low production efficiency
D. High production efficiency
E. None of the above
Q:
(p. 212) In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following?
A. Low sales opportunity
B. Low production efficiency
C. High production efficiency
D. Low degree of customer/server contact
E. None of the above