1. Which of the following statements is most appropriate regarding Sales and Operations planning? a. a high level of detail is not needed. b. a translation must be made from product demand to capacity demand. c. product groups based on similarity of manufacturing process should be used in planning. d. all of the above are true. e. none of the above is true. 2. Priority in production planning relates to: a. The process routing b. how much of what is needed and when c. capacity d. an objective of the firm e. none of the above 3. Which of the following is most true about Sales and Operations Planning a. It usually is produced only once a year b. It usually includes only sales and manufacturing people c. It is typically done in financial terms d. It usually includes all functions at the executive level 4. Over a 10 -week period the cumulative sales are forecast at 10,000 units, the opening inventory is 200 units and the closing inventory is to be 100 units. What should be the weekly planned production for level production? a. 990 b. 1000 c. 1010 d. 1030 e. none of the above 5. Which of the following information is needed to develop a make-to-stock production plan? I. Forecast by time period for the production plan. II. Opening inventory. III. Opening backlog of customer orders. IV. Desired ending inventory a. I, II and III b. I, II and IV c. 1, III and IV d. II, III and IV none of the above 6. A large capacity cushion is appropriate when a. a make-to-stock process is used. b. a firm is attempting to capture market share in a growing industry. c. the market for its products or services is shrinking. d. a firm wants its capacity to match average demand. 1 7. Which of the following statements best fits with the concept of economies of scale? a. Lower per unit costs as the production scale is increased. b. Gains in efficiency due to producing with a smaller facility. c. Higher per unit costs due to problems with communication, coordination, and bureaucratic red tape. d. Producing a greater variety of output that utilizes similar types of raw materials. 8. Which of the following represents the major reason for developing the production plan as part of Sales and Operations Planning? a. To decide how to best produce exactly what is in the sales plan b. To plan for resources required to produce to the agreed plan c. To plan a schedule for the production of individual products d. To plan the acquisition of new manufacturing facilities 9. A resource is available to 120 hours each week. The current utilized rate is 90% and during the past quarter, the efficiency has been running at 105% Based on this, the rated capacity is: a. 113.4 b. 108hrs. c. 236.2 hrs. d. 120hrs. 10. If the sales plan and production plan are not agreed, then the following actions could be taken to resolve the differences except: a. Make no adjustments. b. Use overtime c. Add shifts d. Subcontract e. Reschedule)