POSC EXAM 1 QUESTIONS AND
CORRECT ANSWERS
The natural progression of time periods that enter the planning horizon as the current
period fades into the past is called
A. an updated horizon.
B. an evolutionary period.
C. unfurling the scroll.
D. a rolling planning horizon. - Answer- D.
"A planning approach in which an organization updates its sales and operations plan
regularly, such as on a monthly or quarterly basis" is the definition of a
A. rolling planning horizon.
B. tactical planning horizon.
C. top-down planning horizon.
D. bottom-up planning horizon - Answer- A.
Values that decision makers use to translate the sales forecasts into resource
requirements and to determine the feasibility and costs of alternative sales and
operations plans (examples include labor hours per unit and cash per unit) are
A. bottom-up values.
B. planning values.
C. family values.
D. top-down values. - Answer- B.
The approach to S&OP that is used when the mix of products or services is the same
from one period to the next and resource needs are similar across various products
offered is
A. bottom-up planning.
B. chase.
C. top-down planning.
D. level. - Answer- C.
The approach to S&OP that is used when the product/service mix is unstable and
resource requirements vary greatly across the offerings is
A. Bottom-up planning.
B. chase.
C. top-down planning.
, D. level. - Answer- A.
_______________ takes place at the highest levels of the firm; it addresses needs that
might not arise for years into the future.
A. Detailed planning and control
B. Tactical planning
C. Top-down planning
D. Strategic planning - Answer- D.
_______________ covers time periods ranging from weeks down to just a few hours.
A. Top-down planning
B. Bottom-up planning
C. Detailed planning and control
D. Tactical planning - Answer- C.
Sales and operations planning helps develop _______ plans.
A. long-range
B. tactical
C. strategic
D. medium-range - Answer- B.
One qualitative forecasting method uses experts working individually. The individual
forecasts are shared among the group, after which each participant is allowed to modify
his or her forecast based on the shared information. This method is
A. Delphi.
B. life cycle analogy.
C. build-up forecasting.
D. panel consensus forecasting. - Answer- A.
Your employer is developing a breakthrough product under a veil of secrecy. This
product is unlike anything currently available and also different from your employer's
existing product line. You have been tasked with developing a forecast. A good choice
of technique would be
A. exponential smoothing.
B. the life cycle analogy method.
C. multiple regression.
D. a weighted moving average. - Answer- B.
exponential smoothing equation - Answer- New forecast = (alpha) (latest demand) + (1-
alpha) (previous forecast)
total production equation - Answer- Sum of demand over ___ months - Beginning
Inventory + Ending Inventory
Regular Production Cost equation - Answer- (production cost)*(# of months)*(amt to
make single unit using regular production )
CORRECT ANSWERS
The natural progression of time periods that enter the planning horizon as the current
period fades into the past is called
A. an updated horizon.
B. an evolutionary period.
C. unfurling the scroll.
D. a rolling planning horizon. - Answer- D.
"A planning approach in which an organization updates its sales and operations plan
regularly, such as on a monthly or quarterly basis" is the definition of a
A. rolling planning horizon.
B. tactical planning horizon.
C. top-down planning horizon.
D. bottom-up planning horizon - Answer- A.
Values that decision makers use to translate the sales forecasts into resource
requirements and to determine the feasibility and costs of alternative sales and
operations plans (examples include labor hours per unit and cash per unit) are
A. bottom-up values.
B. planning values.
C. family values.
D. top-down values. - Answer- B.
The approach to S&OP that is used when the mix of products or services is the same
from one period to the next and resource needs are similar across various products
offered is
A. bottom-up planning.
B. chase.
C. top-down planning.
D. level. - Answer- C.
The approach to S&OP that is used when the product/service mix is unstable and
resource requirements vary greatly across the offerings is
A. Bottom-up planning.
B. chase.
C. top-down planning.
, D. level. - Answer- A.
_______________ takes place at the highest levels of the firm; it addresses needs that
might not arise for years into the future.
A. Detailed planning and control
B. Tactical planning
C. Top-down planning
D. Strategic planning - Answer- D.
_______________ covers time periods ranging from weeks down to just a few hours.
A. Top-down planning
B. Bottom-up planning
C. Detailed planning and control
D. Tactical planning - Answer- C.
Sales and operations planning helps develop _______ plans.
A. long-range
B. tactical
C. strategic
D. medium-range - Answer- B.
One qualitative forecasting method uses experts working individually. The individual
forecasts are shared among the group, after which each participant is allowed to modify
his or her forecast based on the shared information. This method is
A. Delphi.
B. life cycle analogy.
C. build-up forecasting.
D. panel consensus forecasting. - Answer- A.
Your employer is developing a breakthrough product under a veil of secrecy. This
product is unlike anything currently available and also different from your employer's
existing product line. You have been tasked with developing a forecast. A good choice
of technique would be
A. exponential smoothing.
B. the life cycle analogy method.
C. multiple regression.
D. a weighted moving average. - Answer- B.
exponential smoothing equation - Answer- New forecast = (alpha) (latest demand) + (1-
alpha) (previous forecast)
total production equation - Answer- Sum of demand over ___ months - Beginning
Inventory + Ending Inventory
Regular Production Cost equation - Answer- (production cost)*(# of months)*(amt to
make single unit using regular production )
