S&OP

Sales and operations planning (SOP) provides which of the following benefits?
I. Key communications links for top management
II. A basis to focus production resources
III. Detailed production plans

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Sales and operations planning (SOP) provides which of the following benefits?
I. Key communications links for top management
II. A basis to focus production resources
III. Detailed production plans

D.IandII

The four fundamental issues in sales and operations planning are
a. Demand, supply, marketing, and sales
b. Marketing, sales, manufacturing, and distribution
c. Volume, mix, demand, and supply
d. Volume, mix, new products, and finance

C. Volume, Mix, Demand, Supply

One role of sales and operations planning is to provide early warning when demand and supply become unbalanced.
a. True
b. False

A. True

Sales and operations planning balances supply and demand at
a. The volume level
b. The mix level
c. Both the volume and mix levels
d. Neither the volume nor mix level

A. The volume level

Many key sales and operations planning linkages are outside the manufacturing planning and control (MPC) system.
a. True
b. False

A. True

Which of the following are true?
I. The sales and operations planning plan is usually stated in aggregate units.
II. The master production schedule is usually stated in end product units.
III. The sales and operations planning plan and the master production schedule should be stated in the same units.
a. I only
b. II only
c. III only
d. I and II only

D. I and II only

C. 6-12

The operations plan is a form of demand forecast.
a. True
b. False

B. False

The master production schedule disaggregates the operations plan.
a. True
b. False

A. True

The demand management function's contribution to sales and operations planning is
a. A detailed forecast
b. Long-range facility planning
c. Ensuring that the operations plan considers all aspects of demand
d. Measurement of forecast accuracy

C. Ensuring that the operations plan considers all aspects of demand

Advantages of the sales and operations planning process include I. Visibility of the interaction between functional groups II. Identification of the trade-offs between functional groups III. The ability to overproduce the plan without the need for additional meetings a. I only b. II only c. III only d. I and II onlyD. I and II onlyCapacity planning occurs during the supply planning phase of sales and operations planning. a. True b. FalseA. TrueDecisions concerning the balance of supply and demand are made in the ______ phase of sales and operations planning. a. Demand planning b. Supply planning c. Pre-SOP meeting d. Executive SOP meetingC. Pre-SOP meetingMechanisms to ensure support for the sales and operations planning process can include I. Informal adjustments to the plan between SOP meetings II. Contracts between functional groups III. Senior executive involvement a. I only b. I and II only c. II and III only d. I and III onlyC. II and III onlyA strategy that matches monthly supply to forecasted demand is a. Level b. Chase c. Match d. MixedB. ChaseA strategy that maintains a consistent monthly output is a. Level b. Chase c. Match d. MixedA. LevelIn a chase strategy, if the sales plan in October is 1,000 units, and there are 24 working days in October, how much inventory should be held at the end of September if the goal is 15 days' supply? a. 500 units b. 625 units c. 750 units d. 1,000 unitsB. 625In a chase strategy, if planned production for the month is 10,000 units and employee productivity is 85 units per month, how many employees should the firm employ at the beginning of the month? a. 115 b. 118 c. 120 d. 125B. 118Following a chase strategy, how many employees would be needed in the month of July in the following scenario? a. 45 b. 50 c. 55 d. 60A. 45What is the planned level production for each period? (Select the best answer.) a. 2,100 units b. 2,200 units c. 2,300 units d. 2,400 unitsB. 2,200How many employees should the firm have at the beginning of the planning period? (Assume a level production schedule.) a. 10 b. 11 c. 12 d. 13D. 13Top management roles in sales and operations planning include I. Commitment to the process II. Forcing resolution of trade-offs III. Designing tools used to conduct sales and operations planning a. I only b. II only c. I and II only d. II and III onlyC. I and II onlyThe primary obligation for any functional area is to "hit the plan." a. True b. FalseA. TrueThe sales and operations planning process is led by which team member? a. Executive champion b. Sales and operations planning process owner c. Demand planning team d. Supply planning teamB. Sales and operations planning process ownerProduct family groups should represent a. Similar production processes b. Similar raw materials or components c. Sales' and marketing's view of the market d. Customer preferencesC. Sales and marketing's view of the marketFor the sales group, overselling the plan is as bad as underselling the plan. a. True b. FalseA. TrueStrategic business unit (SBU) planning involves grouping information by a. Functional areas b. Products and markets c. Employee skill sets d. Manufacturing equipmentB. Products and marketsTo ensure control of the operations plan, which of the following are necessary? I. Accurate forecasts II. A transparent planning process III. Clear communication of expectations a. I and II only b. I, II, and III c. II and III only d. III onlyB. I, II, and IIIAdvanced sales and operations planning pertains to a. Modeling the levels of resources to be provided in each period b. Sales and operations planning for a long time horizon (5-10 years) c. Identifying the best production strategy d. Replacing sales and operations planning with powerful mathematical toolsA. Modeling the levels of resources to be provided in each periodThe objective of a linear programming planning approach is to a. Minimize lost sales b. Minimize costs c. Maximize customer service d. Eliminate inventoryB. Minimizing costsA mixed integer programming approach is capable of modeling problems where more than one shift may be required. a. True b. FalseA. TrueMicrosoft Excel has both linear programming and mixed integer programming capabilities. a. True b. FalseA. TrueA key step in the modeling process is to identify assumptions. a. True b. FalseA. TrueDetermination of inventory holding costs is generally a simple process with few assumptions. a. True b. FalseB. FalseThe advanced sales and operations process can be implemented as soon as a firm starts using sales and operations planning. a. True b. FalseB. False

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110 Cash
115 Petty Cash
120 Accts. Rec.-Aki Suzuki
130 Supplies
140 Prepaid Insurance
320 Lauryn Iverson, Drawing
510 Cash Short and Over
520 Miscellaneous Expense 
530 Rent Expense
535 Repair Expense
540 Supplies Expense
550 Utilities Expense

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     26. Paid cash for supplies, $75.00. C222.
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     31 . Received cash from sales, $700.00. T31.

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Transaction:

    Mar. 31. Received bank statement showing March bank service charge,$30.00. M45.

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