SCM 4362 Quiz 3 (35/35)
1. Sales forecast is related to Sales and Operations Planning (SOP) as follows:
a. Sales forecast is an input to SOP
b. Sales forecast is an output of SOP
c. Sales forecast is not included in SOP
d. All of the statements are incorrect
2. Maintaining a stable workforce working and/or a constant rate of output while shortages
and surpluses are absorbed by fluctuating inventory levels is which of the following SOP
strategies?
a. Chase
b. Level
c. Full employment
d. Skill maintenance
3. The role of Sales and Operations Planning (SOP) is to balance demand and supply
a. at the volume level
b. at the product mix level
c. at the volume and mix levels
d. All of the statements are correct
4. The use of Chase strategy in Sales and Operations Planning (SOP) will result in
a. Less cost than when Level strategy is used
b. The lowest total cost
c. Minimal inventory carrying/back order costs
d. Minimal hiring and laying off costs
5. The demand management function’s contribution to SOP is
a. providing capacity availability
b. ensuring that sufficient budget is available for execution of plans
c. ensuring that the influence of all aspects of demand is included in planning
d. calculating the cost of forecasting
6. Which of the following costs are relevant to in Sales and Operations Planning?
a. Capital investment costs
b. Transaction costs
c. Labor costs (such as hiring and firing costs)
d. Legal costs
7. SOP provides which of the following benefits?
I. A framework within which master production schedule is developed
II. A basis to focus production resources to achieve the firm's strategic objectives
III. Key communications links for top management to coordinate various planning
activities in a business
a. I, II and III
b. II only
c. III only
1. Sales forecast is related to Sales and Operations Planning (SOP) as follows:
a. Sales forecast is an input to SOP
b. Sales forecast is an output of SOP
c. Sales forecast is not included in SOP
d. All of the statements are incorrect
2. Maintaining a stable workforce working and/or a constant rate of output while shortages
and surpluses are absorbed by fluctuating inventory levels is which of the following SOP
strategies?
a. Chase
b. Level
c. Full employment
d. Skill maintenance
3. The role of Sales and Operations Planning (SOP) is to balance demand and supply
a. at the volume level
b. at the product mix level
c. at the volume and mix levels
d. All of the statements are correct
4. The use of Chase strategy in Sales and Operations Planning (SOP) will result in
a. Less cost than when Level strategy is used
b. The lowest total cost
c. Minimal inventory carrying/back order costs
d. Minimal hiring and laying off costs
5. The demand management function’s contribution to SOP is
a. providing capacity availability
b. ensuring that sufficient budget is available for execution of plans
c. ensuring that the influence of all aspects of demand is included in planning
d. calculating the cost of forecasting
6. Which of the following costs are relevant to in Sales and Operations Planning?
a. Capital investment costs
b. Transaction costs
c. Labor costs (such as hiring and firing costs)
d. Legal costs
7. SOP provides which of the following benefits?
I. A framework within which master production schedule is developed
II. A basis to focus production resources to achieve the firm's strategic objectives
III. Key communications links for top management to coordinate various planning
activities in a business
a. I, II and III
b. II only
c. III only
