ANSWER KEY

Homework Chapter 10 S&OP

Multiple Choice:
1.
2.
3.
4.
5.

D
B
D
D
D

6.
7.
8.
9.

A
B
B
D

ESSAY Chapter 10
1. One of methods Making Sales Match Capacity is Yield Management, Please
explain about this and what condition is this method commonly applicable ?.
Answer:
Yield management An approach that services commonly use with
highly perishable products in which prices are regularly adjusted to
maximize total profit.
This approach typically happen to service environment, service can not
be built ahead of time ans stored in inventory (like in manufacturing).
Firm used price and promotion to bring the sales in-line with capacity.
Example: arline & hotel.
-

When demand level lower than expected, yield management system will boost
demand by lowering the price.
When deman is higher than expected, price are raised (or without discount).

2. Why is it important to update a sales and operation plan on regular basis, using a
rolling time horizon approach?
Answer:
It is important to update the sales and operations plan regularly with a rolling time
horizon approach because, by doing so will update the current plan for the future with
the most recent values. A rolling time horizon helps the S&OP keep up-to-date with
current trends and demand so that management can make the most informed
decisions with the current valuable information.
3. What are the advantage to a firm of coordinating its S&OP Process with key supply
chain partners (supplier)? What are the potential drawbacks?
Answer:
Two key advantages of coodinating a firms S&OP with key supply chain partners are
1) it helps eliminate uncertainty by combining forecasts, and
2) the information flow between suppliers helps to limit the disruption of flow of goods
within the supply chain.
One potential drawback is that much of the information shared may be proprietary. As
a result, trust is necessary for such sharing of information to take place.

ANSWER KEY
Homework Chapter 11 Managing Inventory
Multiple Choice:
1.
2.
3.
4.
5.

B
A
C
B
D

6.
7.
8.
9.

A
C
D
C

ESSAY Chapter 11
1. What is the condition to reflect Single-period inventory system ?. How to set the
Target Service Level? (Please provide example of this product/industry, )
Answer:
Single Period inventory system is A system used when demand occurs
in only a single point in time and when excess inventory cannot be
held in the future.
Firms must weigh the cost of being short against the cost of holding
excess units. Examples: Fresh fish, magazines, newspapers, Christmas
trees
Setting the Target Service Level is based on the best balance
between shortage costs and excess costs. By then, use the target
service level in determining the target stock point for the items.
2. Which of the following are independent or dependent demand
inventory item?
1. Bicycle in the toy store (independent)
2. Bicycle wheels in a bicycle factory (dependent)
3. Blood at a blood bank (independent)
4. Hamburger at fast food restaurant (independent)
5. Hamburger buna at the a plant that produces frozen dinners (dependent)

ANSWER KEY
Homework Chapter 12 Managing Production
Multiple Choice:
1.
2.
3.
4.
5.
6.

D
C
C
B
D
C

7. D
8. C
9. B
10.
11.

D
D

Essay Chapter 12/12S

1. What is MRP Nervousnes?.Can this condition affect DRP system as well?.
Answer:
MRP nervousness refers to the observation that any change, even a
small one, in the requirements for items at the top of the bill can
have drastic effects on items further down the bill. As you fall
short of parts at the top, you cannot create more parts as you go down
the bill, and at the bottom you have massive amounts of shortages.
MRP nervousness can affect DRP systems as well because they use
MRP-style logic to feed accurate demand information into the master
schedule.
2. What are the benefit of having formal Master Scheduling Process?. What
happen to the firm that dont follow some of basic rules of master
scheduling?.
Answer:
It is good to have a formal master scheduling process because it
ensures uniformity in the calculation and results, no matter who
does the scheduling. If firms do not follow some of the basic rules of
scheduling there would be a disconnect between the supply chain,
sales, marketing, and finance and that almost ensures that there will
be chaos among these units.
3. What is the different between information flow and information system? Do
information system always have to be computerized? Why?
Answer:
An information flow focuses on what information is being moved,
while an information system is concerned with the how. For
example, kanban is a type of information system that, similar to MRP
(another type of information system), helps manufacturers determine
when to produce parts. Information systems do not have to be
computerizedthey can be paper-based or even communicated
verbally.

ANSWER KEY
Homework Chapter 13 JIT / Lean Production
Multiple Choice:
1.
2.
3.
4.

B
B
C
D

5. C
6. D
7. D

Essay chapter 13
1. Transaportation is needed in the business with various reason. How to
differentiate between necessary and unnecessary transportation?. Please give
at 3 examples for both.
Answer:
Necessary transportation is something that adds value to a good or service like a delivery
from UPS or the delivery of a pizza. Unnecessary transportation does not add any value
for the final customer and adds costs and increased damage risk. For example, moving a
product back and forth between warehouses due to poor inventory planning wouuld be an
example of unnecessary transportation.
2. In office management, Please identify & provide one example each of potensial 8
lean waste!.

ANSWER KEY
Homework Chapter 14 Managing Project
Multiple Choice:
1.
2.
3.
4.

B
C
C&D
D

5.
6.
7.
8.

D
C
D
D

ANSWER KEY FOR ESSAY:

1. The industry trends have pushed project management to the forefront. One of
the trends is the faster pace of strategic change. What does it means
(from marketing perspective)?, share 3 strategic initiatives managed with
project organization.
Answer:
The dynamic at marketplace require a proactive competitive strategy by
introducing innovation and latest technology in order to serve better, cretae
value to customer as well as to satisfy the current & future customer.
New product lines are introduced more often to fight off competitors.
Information technology solutions become quickly out-of-date.
Customer and supplier networks quickly change.
2. What are the main advantage of using a network-based approach to project
management rather than a Gantt Chart?. Under what circumstances might a
Gantt Chart be preferable to a network-based approach?.
Answer:
Network-based approaches are better than Gantt charts in that they show
precedence relationships and Gantt charts do not.
If a project has dozens or hundreds of activities, you need to know precedence
relationships to see how crashes or delays will affect the overall project timeline.
With network-based approaches you can visually see the linkages between the
activities.
Gantt charts are preferable when there are only a handful of steps in the project.
3. Consider the following project activities - Problem no. 3 (page: 461)
ACTIVITY
A
B
C
D
E
F
G
H
a.
b.

DURATION
(DAYS)
1
2
1.5
3
2.5
1.5
5
3

PREDECESSOR
S
None
None
None
A, B
C
D, E
F
F

Draw the project network diagram

Identify all paths through the network and their length. Are there any
activities that are on all paths?
c.
Identify the critical activities and paths. How long will the entire project take?

Answer:
a. Project Network Diagram
A,
B,
1
C,
2
1.
5

ACTIVI
TY

DURATION
(DAYS)

C
D
E
F
G
H

1,5
3
2,5
1,5
5
3
b. All network
Path:
A-D-F-G
ADFH
BDFG
BDFH
CEFG
CEFH

D,
E,
3
2.
5

F,
1.
5

PREDECESSO
RS
Non
e
Non
e
Non
e
A
B
C
D
E
F
F

G,
4
H,
2

ES

EF

LS

LF

0
2
1,5
5
6,5
6,5

1,5
5
4
6,5
11,5
9,5

1
2
2,5
5
6,5
8,5

2,5
5
5
6,5
11,5
11,5

paths & their length:

Length (days):
10,5
8,5
11,5
9,5
10,5
8,5

Yes, activity F is on all paths.

c. The critical activities are B-D-F-G as they are the activities on the
critical path. The entire project will take 11.5 days

CRITIC
AL
PATH?

YES
YES
YES
YES

ANSWER KEY
Homework Chapter 15 Developing Products & Services
Multiple Choice:
1.
2.
3.
4.

D
C
A
D

5.
6.
7.
8.

C
B
C
D

Essay chapter 15 : Developing Products/Services:

1. What are some of the benefits of including suppliers in the product development
process? Can you think of any risk?.
Answer:
Some benefits of supplier inclusion are gaining a suppliers insight into the development process, allowing
comparisons of proposed production requirements with a suppliers existing capabilities, and allowing a
supplier to begin preproduction work early. The risks are that if you give suppliers the blueprint of your
product, you never know if that information could be stolen or given to a competitor. You also are risking
losing competition for parts because if you include the supplier in the development then you are really
committing to them as suppliers for the product for the foreseeable future.
2. Why is it important to include customer s early in the development process?. What
happen if the costumer info come later?.
Answer:
It is important to consider the customers early in the development process because that is who is ultimately
going to decide if the good is a success and buy it. You want to meet as many of the customers needs as
possible with the good so you need to know what they want when you make it. If you do not find these
needs early and incorporate them into the initial design then you risk having to change design and
functionality later at a huge cost.