Question 1

__________ is an approach to determine the quantity and timing of production for the intermediate future.

Accepted Answer

Aggregate planning

Question 2

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Accepted Answer

A) True 
 B)False  True

Question 3

A professional services firm is investigating yield management as a means of taking advantage of unused capacity. Analysts for this firm estimate a demand curve for the firm's service, which is sold by the hour. Points on this demand curve include 9000 hours at the current rate of $60 per hour, 9500 hours at $55, 10,000 hours at $50, and 10,500 hours at $45. Based on this demand curve, what price point would be best for the firm, if its objective is maximum revenue?

Accepted Answer

The yields of these price points are as follows: at $60 per hour, revenue is $540,000; at $55, revenue is $522,500; at $50, revenue is $500,000; and at $45, revenue is $472,500. The firm would be well advised not to lower its price, since that will not raise revenue. The lower prices will generate more demand, and utilize some unused capacity, but the firm's revenues will fall. (Demand in this case is pretty inelastic).

Question 4

Describe the advantages and limitations of the graphical method of aggregate planning.

Accepted Answer

Advantages include that it is easy to un

Question 5

The transportation method of linear programming is an optimizing approach to aggregate planning.

Accepted Answer

A) True 
 B)False

Question 6

Which choice best describes level scheduling?

Accepted Answer

A)  Daily production is variable from period to period. 
B)  Subcontracting, hiring, and layoffs manipulate supply. 
C)  Price points are calculated to match demand to capacity. 
D)  Inventory goes up or down to buffer the difference between demand and production. 
E)  Seasonal demand fluctuations are matched without hirings or layoffs. 
A)  Daily production is variable from period to period. 
B)  Subcontracting, hiring, and layoffs manipulate supply. 
C)  Price points are calculated to match demand to capacity. 
D)  Inventory goes up or down to buffer the difference between demand and production. 
E)  Seasonal demand fluctuations are matched without hirings or layoffs.

Question 7

What are successful techniques of controlling the cost of labor involved in service firms?

Accepted Answer

Successful techniques include:
1. accura

Question 8

A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period) it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that

Accepted Answer

A)  the January requirement is below level production of 420 units 
B)  level production is approximately 1000 units per day 
C)  level production of 420 units per day is below the January requirement 
D)  level production is approximately 420 units per month 
E)  the firm must hire workers between December and January 
A)  the January requirement is below level production of 420 units 
B)  level production is approximately 1000 units per day 
C)  level production of 420 units per day is below the January requirement 
D)  level production is approximately 420 units per month 
E)  the firm must hire workers between December and January

Question 9

The planning tasks associated with staffing, production, inventory, and sub-contracting levels typically fall under

Accepted Answer

A)  short-range plans 
B)  intermediate-range plans 
C)  long-range plans 
D)  demand options 
E)  strategic planning 
A)  short-range plans 
B)  intermediate-range plans 
C)  long-range plans 
D)  demand options 
E)  strategic planning

Question 10

Which of the following statements about aggregate planning is true?

Accepted Answer

A)  Advertising/promotion is a way of manipulating product or service supply. 
B)  Work station loading and job assignments are examples of aggregate planning. 
C)  Overtime/idle time is a way of manipulating product or service demand. 
D)  Aggregate planning uses the adjustable part of capacity to meet production requirements. 
E)  All of the above are true. 
A)  Advertising/promotion is a way of manipulating product or service supply. 
B)  Work station loading and job assignments are examples of aggregate planning. 
C)  Overtime/idle time is a way of manipulating product or service demand. 
D)  Aggregate planning uses the adjustable part of capacity to meet production requirements. 
E)  All of the above are true.

Question 11

Why do some firms have longer planning horizons than others?

Accepted Answer

Aggregate planning is usually considered

Question 12

What is disaggregation?

Accepted Answer

Disaggregation is th

Question 13

Which of the following is not one of the four things needed for aggregate planning?

Accepted Answer

A)  a logical overall unit for measuring sales and output 
B)  a method for determining costs, such as hiring, layoffs, and inventory costs, associated with production schedules 
C)  a mathematical model that will minimize costs over the intermediate planning period 
D)  an aggregate demand forecast for an intermediate planning period 
E)  All of these are needed for aggregate planning. 
A)  a logical overall unit for measuring sales and output 
B)  a method for determining costs, such as hiring, layoffs, and inventory costs, associated with production schedules 
C)  a mathematical model that will minimize costs over the intermediate planning period 
D)  an aggregate demand forecast for an intermediate planning period 
E)  All of these are needed for aggregate planning.

Question 14

The text states that trial-and-error methods continue to be widely used, in spite of the development of various models. Using your knowledge from earlier in this course or from other quantitative courses you might have taken, speculate on why managers continue to use "primitive" devices when such sophistication is available.

Accepted Answer

Ease of use is preferred to so

Question 15

Which of the following aggregate planning methods does not work if hiring and layoffs are possible?

Accepted Answer

A)  the linear decision rule 
B)  simulation 
C)  the management coefficients model 
D)  the transportation method 
E)  graphical methods 
A)  the linear decision rule 
B)  simulation 
C)  the management coefficients model 
D)  the transportation method 
E)  graphical methods

Question 16

What directly results from disaggregation of an aggregate plan?

Accepted Answer

A)  a master production schedule 
B)  priority scheduling 
C)  a transportation matrix 
D)  a capacity-demand matrix 
E)  detailed work schedules 
A)  a master production schedule 
B)  priority scheduling 
C)  a transportation matrix 
D)  a capacity-demand matrix 
E)  detailed work schedules

Question 17

One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not an ingredient for controlling labor cost in services?

Accepted Answer

A)  accurate scheduling of labor-hours to assure quick response to customer demand 
B)  an on-call labor resource that can be added or deleted to meet unexpected demand 
C)  contract overseas labor to obtain a lower wage scale 
D)  flexibility of individual worker skills that permits reallocation of available labor 
E)  flexibility in rate of output or hours of work to meet changing demand 
A)  accurate scheduling of labor-hours to assure quick response to customer demand 
B)  an on-call labor resource that can be added or deleted to meet unexpected demand 
C)  contract overseas labor to obtain a lower wage scale 
D)  flexibility of individual worker skills that permits reallocation of available labor 
E)  flexibility in rate of output or hours of work to meet changing demand

Question 19

The level scheduling strategy allows lower inventories than the pure chase strategy.

Accepted Answer

A) True 
 B)False

Question 20

A(n) __________ is the result of the disaggregation of the aggregate plan.

Accepted Answer

master pro

Exam 13: Aggregate Planning

__________ is an approach to determine the quantity and timing of production for the intermediate future.

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Describe the advantages and limitations of the graphical method of aggregate planning.

The transportation method of linear programming is an optimizing approach to aggregate planning.

Which choice best describes level scheduling?

What are successful techniques of controlling the cost of labor involved in service firms?

The planning tasks associated with staffing, production, inventory, and sub-contracting levels typically fall under

Which of the following statements about aggregate planning is true?

Why do some firms have longer planning horizons than others?

What is disaggregation?

Which of the following is not one of the four things needed for aggregate planning?

Which of the following aggregate planning methods does not work if hiring and layoffs are possible?

What directly results from disaggregation of an aggregate plan?

One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.

Which of the following is not an ingredient for controlling labor cost in services?

The level scheduling strategy allows lower inventories than the pure chase strategy.

A(n) __________ is the result of the disaggregation of the aggregate plan.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Inventory Management

Material Requirements Planning Mrp and Erp

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Statistical Tools for Managers

Acceptance Sampling

The Simplex Method of Linear Programming

The Modi and Vam Methods of Solving Transportation Problems

Vehicle Routing and Scheduling

Managing Quality

Process Strategy

Supply-Chain Management

Vehicle Routing and Scheduling

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