M7

Question 1

The process of making sure that demand and supply plans are in balance, from the aggregate level down to the short-term scheduling level

Answer 1

Operations Planning and Scheduling

Question 2

A plan of future aggregate resource levels so that supply is in balance with demand. It states a company’s or department’s production rates, workforce levels, and inventory holdings that are consistent with demand forecasts and capacity constraints. This term is a time-phased plan, meaning that it is projected for several time periods (such as months or quarters) into the future.

Answer 2

Sales and Operations Plan (S&OP)

Question 3

Another term for the sales and operations plan is known as

Answer 3

Aggregate Plan

Question 4

A sales and operations plan for a manufacturing firm that centers on production rates and inventory holdings.

Answer 4

Production Plan

Question 5

A sales and operations plan for a service firm, which centers on staffing and on other human resource–related factors.

Answer 5

Staffing Plan

Question 6

An intermediate step in the planning process that lies between S&OP and scheduling. It determines requirements for materials and other resources on a more detailed level than the S&OP. It is covered in the next chapter

Answer 6

Resource Plan

Question 7

A detailed plan that allocates resources over shorter time horizons to accomplish specific tasks

Answer 7

Schedule

Question 8

What level( 1-3) do sales and operations plans exist in?

Answer 8

Level 1

Question 9

Companies perform aggregation along three dimensions. What are they?

Answer 9

Services or products
Workforce
Time

Question 10

A group of customers, services, or products that have similar demand requirements and common process, workforce, and materials requirements is called a

Answer 10

Product Family

Question 11

A projected statement of income, costs, and profits.

Answer 11

Business Plan

Question 12

A plan for financial assessment used by a nonprofit service organization.

Answer 12

Annual Plan

Question 13

What can be used to absorb uneven rates of demand and supply? Think seasonal businesses that sell a majority of their products a few months out of the year

Answer 13

Anticipation Inventory

Question 14

How management adjusts workforce levels by hiring or laying off employees. May be seasonal/based off demand think splash

Answer 14

Workforce Adjustment

Question 15

An alternative to a workforce adjustment is a change in workforce utilization involving overtime and undertime is known as

Answer 15

Workforce Utilization

Question 16

The time that employees work that is longer than the regular workday or workweek for which they receive additional pay.

Answer 16

Overtime

Question 17

The situation that occurs when employees do not have enough work for the regular-time workday or workweek.

Answer 17

Undertime

Question 18

When employees are kept on the payroll rather than being laid off is known as

Answer 18

Paid Undertime

Question 19

What is another option than undertime, typically someone who is paid for the hours and days they’ve worked not salary

Answer 19

Part-Time Workers

Question 20

Who can be used to overcome short-term capacity shortages, such as during peaks of the season or business cycle. They can supply services, make components and subassemblies, or even assemble an entire product.

Answer 20

Subcontractors

Question 21

A manufacturer can shut down during an annual lull in sales, leaving a skeleton crew to cover operations and perform maintenance. Hospital employees might be encouraged to take all or part of their allowed vacation time during slack periods this is known as

Answer 21

Vacation Schedules

Question 22

A strategy that involves hiring and laying off employees to match the demand forecast.

Answer 22

Chase Strategy

Question 23

What are the drawbacks of the chase strategy?

Answer 23

The drawbacks are the expense of continually adjusting workforce levels, the potential alienation of the workforce, and the loss of productivity and quality because of constant changes in the workforce.

Question 24

A strategy that keeps the workforce constant, but varies its utilization via overtime, undertime, and vacation planning to match the demand forecast.

Answer 24

Level Strategy

Question 25

A strategy that considers the full range of supply options.

Answer 25

Mixed Strategy

Question 26

This term can be either physical limitations or related to managerial policies.

Answer 26

Constraints

Question 27

An example of which type of constraint might be machine capacities that limit maximum output or inadequate inventory storage space.

Answer 27

Physical Constraints

Question 28

An example of which type of constraint might include limitations on the number of backorders or the use of subcontractors or overtime, as well as the minimum inventory levels needed to achieve desired safety stocks

Answer 28

Policy Constraints

Question 29

What type of wages are paid to employees plus contributions to benefits, such as health insurance, dental care, social security, retirement funds, and pay for vacations, holidays, and certain other types of absences.

Answer 29

Regular Time

Question 30

Wages paid for work beyond the normal workweek, typically 150 percent of regular-time wages (sometimes up to 200 percent for Sundays and holidays), exclusive of fringe benefits. Overtime can help avoid the extra cost of fringe benefits that come with hiring another full-time employee. This is known as

Answer 30

Overtime

Question 31

Costs of advertising jobs, interviews, training programs for new employees, scrap caused by the inexperience of new employees, loss of productivity, and initial paperwork. Layoff costs include the costs of exit interviews, severance pay, retaining and retraining remaining workers and managers, and lost productivity this is known as

Answer 31

Hiring and Laying Off costs

Question 32

Costs that vary with the level of inventory investment: the costs of capital tied up in inventory, variable storage and warehousing costs, pilferage and obsolescence costs, insurance costs, and taxes.

Answer 32

Inventory Holding

Question 33

Additional costs to expedite past-due orders, the costs of lost sales, and the potential cost of losing a customer to a competitor (sometimes called loss of goodwill). are known as

Answer 33

Backorder and stockout

Question 34

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