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Sales and Operation Planning

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Sales and Operation Planning
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14 |

Sales and Operations Planning | |

TRUE/FALSE

1. The sales and operations plan is a statement of a company’s production rate, workforce levels, and inventory holdings based on estimates of customer requirements and capacity limitations. • Answer: True • Reference: Introduction • Difficulty: Easy • Keywords: sales, operations, plan, production, rate, workforce

2. A production plan is another name for a manufacturing firm’s sales and operations plan. • Answer: True • Reference: Introduction • Difficulty: Easy • Keywords: production, plan, sales, operations, manufacturing

3. A staffing plan is a manufacturing firm’s sales and operations plan. • Answer: False • Reference: Introduction • Difficulty: Moderate • Keywords: staffing, plan, service, manufacturing

4. The sales and operations plan typically has a one-year planning horizon. • Answer: True • Reference: The Purpose of Sales and Operations Plans • Difficulty: Moderate • Keywords: sales, operations, plan, horizon

5. A product family is a group of customers, services, or products that have similar demand requirements and common processes, labor, and materials requirements. • Answer: True • Reference: The Purpose of Sales and Operations Plans • Difficulty: Moderate • Keywords: product, family

6. The best mix of full- and part-time employees is a sales and operations planning decision. • Answer: True • Reference: The Purpose of Sales and Operations Plans • Difficulty: Moderate • Keywords: labor, mix, full-time, part-time, sales, operations, decision

7. A master production schedule is a schedule that specifies the timing, size, and sequence of production for aggregated part families. • Answer: False • Reference: The Purpose of Sales and Operations Plans • Difficulty: Moderate •

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