SCM 301 Exam 2 questions with
complete solutions
Sales and Operations Planning (S&OP) - correct answer ✔✔A process to develop tactical plans by
integrating marketing plans for new and existing products with the management of the supply chain. The
process brings together all the plans for the business into one integrated set of plans. Also called
aggregate planning.
Aggregate Planning - correct answer ✔✔Another name for Sales and Operations Planning (S&OP)
Strategic Planning - correct answer ✔✔Planning that takes place at the highest levels of the firm,
addressing needs that might not arise for years into the future.
Tactical Planning - correct answer ✔✔Planning that covers a shorter period, usually 12 to 24 months out,
although the planning horizon may be longer in industries with very long lead times (e.g., engineer-to-
order firms)
Detailed Planning and Control - correct answer ✔✔Planning that covers time periods ranging from
weeks down to just a few hours out.
Top-down Planning - correct answer ✔✔An approach to S&OP in which a single, aggregated sales
forecast drives the planning process. For top-down planning to work, the mix of products or services
must be essentially the same from one time period to the next or the products or services to be
provided must have very similar resource requirements.
Bottom-Up Planning - correct answer ✔✔An approach to S&OP that is used when the product/service
mix is unstable and resource requirements vary greatly across the offerings. Under such conditions,
managers will need to estimate the requirements for each set of products or services separately and
then add them up to get an overall picture of the resource requirements.
Planning Values - correct answer ✔✔Values that decision makers use to translate a sales forecast into
resource requirements and to determine the feasibility and costs of alternative sales and operations
plans.
, Level Production Plan - correct answer ✔✔A sales and operations plan in which production is held
constant and inventory is used to absorb differences between production and that sales forecast.
Chase Production Plan - correct answer ✔✔A sales and operations plan in which production is changed
in each time period to match the sales forecast.
Mixed Production Plan - correct answer ✔✔A sales and operations plan that varies both production and
inventory levels in an effort to develop the most effective plan.
Load Profile - correct answer ✔✔A display of future capacity requirements based on released and/or
planned orders over a given span of time.
Net Cash Flow - correct answer ✔✔The net flow of dollars into or out of a business over some times
period.
Rolling Planning Horizon - correct answer ✔✔A planning approach in which an organization updates its
sales and operations plan regularly, such as on a monthly or quarterly basis.
Yield Management - correct answer ✔✔An approach that services commonly use with highly perishable
"products," in which prices are regularly adjusted to maximize total profit.
Tiered Workforce - correct answer ✔✔A strategy used to vary workforce levels, in which additional full-
time or part-time employees are hired during peak demand periods, while a smaller permanent staff is
maintained year-round.
Offloading - correct answer ✔✔A strategy for reducing and smoothing out workforce requirements that
involves having customers perform part of the work themselves.
Inventory - correct answer ✔✔According to APICS, "those stocks or items used to support production
(raw materials and work-in-process items), supporting activities (maintenance, repair, and operating
supplies) and customer service (finished goods and spare parts)."
complete solutions
Sales and Operations Planning (S&OP) - correct answer ✔✔A process to develop tactical plans by
integrating marketing plans for new and existing products with the management of the supply chain. The
process brings together all the plans for the business into one integrated set of plans. Also called
aggregate planning.
Aggregate Planning - correct answer ✔✔Another name for Sales and Operations Planning (S&OP)
Strategic Planning - correct answer ✔✔Planning that takes place at the highest levels of the firm,
addressing needs that might not arise for years into the future.
Tactical Planning - correct answer ✔✔Planning that covers a shorter period, usually 12 to 24 months out,
although the planning horizon may be longer in industries with very long lead times (e.g., engineer-to-
order firms)
Detailed Planning and Control - correct answer ✔✔Planning that covers time periods ranging from
weeks down to just a few hours out.
Top-down Planning - correct answer ✔✔An approach to S&OP in which a single, aggregated sales
forecast drives the planning process. For top-down planning to work, the mix of products or services
must be essentially the same from one time period to the next or the products or services to be
provided must have very similar resource requirements.
Bottom-Up Planning - correct answer ✔✔An approach to S&OP that is used when the product/service
mix is unstable and resource requirements vary greatly across the offerings. Under such conditions,
managers will need to estimate the requirements for each set of products or services separately and
then add them up to get an overall picture of the resource requirements.
Planning Values - correct answer ✔✔Values that decision makers use to translate a sales forecast into
resource requirements and to determine the feasibility and costs of alternative sales and operations
plans.
, Level Production Plan - correct answer ✔✔A sales and operations plan in which production is held
constant and inventory is used to absorb differences between production and that sales forecast.
Chase Production Plan - correct answer ✔✔A sales and operations plan in which production is changed
in each time period to match the sales forecast.
Mixed Production Plan - correct answer ✔✔A sales and operations plan that varies both production and
inventory levels in an effort to develop the most effective plan.
Load Profile - correct answer ✔✔A display of future capacity requirements based on released and/or
planned orders over a given span of time.
Net Cash Flow - correct answer ✔✔The net flow of dollars into or out of a business over some times
period.
Rolling Planning Horizon - correct answer ✔✔A planning approach in which an organization updates its
sales and operations plan regularly, such as on a monthly or quarterly basis.
Yield Management - correct answer ✔✔An approach that services commonly use with highly perishable
"products," in which prices are regularly adjusted to maximize total profit.
Tiered Workforce - correct answer ✔✔A strategy used to vary workforce levels, in which additional full-
time or part-time employees are hired during peak demand periods, while a smaller permanent staff is
maintained year-round.
Offloading - correct answer ✔✔A strategy for reducing and smoothing out workforce requirements that
involves having customers perform part of the work themselves.
Inventory - correct answer ✔✔According to APICS, "those stocks or items used to support production
(raw materials and work-in-process items), supporting activities (maintenance, repair, and operating
supplies) and customer service (finished goods and spare parts)."
