Question 1

"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes

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 2

What is the primary management challenge when implementing yield management?

Accepted Answer

Identifying differen

Question 3

What are the disadvantages common to the following two strategies: (1) varying inventory levels and (2) back ordering during periods of high demand?

Accepted Answer

Varying inventory levels and b

Question 4

Which of the following inputs helps an aggregate planner select the rate of output for a facility over the next 3 to 18 months?

Accepted Answer

A)  facility capacity 
B)  inventory on hand 
C)  workforce size 
D)  demand forecasts 
E)  all of the above 
A)  facility capacity 
B)  inventory on hand 
C)  workforce size 
D)  demand forecasts 
E)  all of the above

Question 5

Which of the following is consistent with a pure chase strategy?

Accepted Answer

A)  vary production levels to meet demand requirements 
B)  vary work force to meet demand requirements 
C)  vary production levels and work force to meet demand requirements 
D)  little or no use of inventory to meet demand requirements 
E)  All of the above are consistent with a pure chase strategy. 
A)  vary production levels to meet demand requirements 
B)  vary work force to meet demand requirements 
C)  vary production levels and work force to meet demand requirements 
D)  little or no use of inventory to meet demand requirements 
E)  All of the above are consistent with a pure chase strategy.

Question 6

Which of the following statements regarding aggregate planning in services is false?

Accepted Answer

A)  When outputs are intangible, aggregate planning deals mainly with human resource requirements and managing demand. 
B)  Perishability of inventory is an important consideration of planning. 
C)  Aggregate planning in some service industries can be simpler than in manufacturing. 
D)  Labor is the primary aggregate planning vehicle. 
E)  Level scheduling is far more common than chase. 
A)  When outputs are intangible, aggregate planning deals mainly with human resource requirements and managing demand. 
B)  Perishability of inventory is an important consideration of planning. 
C)  Aggregate planning in some service industries can be simpler than in manufacturing. 
D)  Labor is the primary aggregate planning vehicle. 
E)  Level scheduling is far more common than chase.

Question 7

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
   Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy, or Plan C-700 level with the remainder by subcontracting?

Accepted Answer

Plan A has cost of $378,000, plan B has

Question 8

Top executives tend to focus their attention on which type of forecasts?

Accepted Answer

A)  short-range 
B)  medium-range 
C)  long-range 
D)  weather 
E)  the forecast for the next day's absentee levels 
A)  short-range 
B)  medium-range 
C)  long-range 
D)  weather 
E)  the forecast for the next day's absentee levels

Question 9

Aggregate planning would entail which of the following production aspects at BMW for a 12 month period?

Accepted Answer

A)  number of cars with a hi-fi stereo system to produce 
B)  number of two-door vs. four-door cars to produce 
C)  number of green cars to produce 
D)  total number of cars to produce 
E)  B, C, and D 
A)  number of cars with a hi-fi stereo system to produce 
B)  number of two-door vs. four-door cars to produce 
C)  number of green cars to produce 
D)  total number of cars to produce 
E)  B, C, and D

Question 10

Industries in which quadrant of the Yield Management Matrix are traditionally associated with revenue management? (In other words, in which quadrant are yield management techniques easiest to apply?)

Accepted Answer

A)  use tends to be predictable and price tends to be fixed 
B)  use tends to be predictable and price tends to be variable 
C)  use tends to be uncertain and price tends to be fixed 
D)  use tends to be uncertain and price tends to be variable 
E)  all of the above; there is no difference 
A)  use tends to be predictable and price tends to be fixed 
B)  use tends to be predictable and price tends to be variable 
C)  use tends to be uncertain and price tends to be fixed 
D)  use tends to be uncertain and price tends to be variable 
E)  all of the above; there is no difference

Question 11

Which of the following is not associated with manipulation of product or service demand?

Accepted Answer

A)  price cuts or discounts 
B)  promotion 
C)  subcontracting 
D)  counterseasonal products or services 
E)  advertising 
A)  price cuts or discounts 
B)  promotion 
C)  subcontracting 
D)  counterseasonal products or services 
E)  advertising

Question 12

A train company is considering applying yield management principles to its ticket sales. Suppose that there is no variable cost in the operation, only a fixed cost to run each train. The company decides that a student ticket will sell for half the cost of a business ticket. If demand for the business tickets is given by 50-3x where x is the sales price of a business ticket and demand for student tickets is given by 70-y^2 where y is the price of a student ticket how much should the company charge for tickets to maximize revenue?

Accepted Answer

The crucial step is to relate x and y, u

Question 13

Which of the following statements about aggregate planning is true?

Accepted Answer

A)  The development of mathematical models has allowed aggregate planners to discontinue use of trial-and-error methods. 
B)  In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand. 
C)  A pure chase strategy allows lower inventories when compared to pure level scheduling. 
D)  Disaggregation turns the master production schedule into an intermediate term master plan. 
E)  All of the above are true. 
A)  The development of mathematical models has allowed aggregate planners to discontinue use of trial-and-error methods. 
B)  In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand. 
C)  A pure chase strategy allows lower inventories when compared to pure level scheduling. 
D)  Disaggregation turns the master production schedule into an intermediate term master plan. 
E)  All of the above are true.

Question 14

The strategies of aggregate planning are broadly divided into demand options and capacity options.

Accepted Answer

A) True 
 B)False

Question 15

A manufacturing plant has created the following forecast and would like to apply a graphical aggregate planning method. Complete the table and calculate the difference between Jan.'s forecast demand per working day vs a level production model for the entire period?

Accepted Answer

@#IMG-DLM& Total expected demand/ Total # working

Question 16

Compare the chase versus level strategy options.

Accepted Answer

The chase strategy sets production equal

Question 17

Controlling the cost of labor in services involves quick response to consumer demand, on-call labor for unexpected demand, flexibility of labor for reallocation, and flexibility of hours or rate of output of individual workers.

Accepted Answer

A) True 
 B)False

Question 18

Golden Eagle Machine Works has the following demand requirements and other data for the upcoming four quarters.
   What is the total cost of pursuing a chase aggregate plan over the coming year?

Accepted Answer

For a chase strategy, quarterl

Question 19

One question that operations managers must ask when generating an aggregate plan is what factors are likely to influence demand and by how much.

Accepted Answer

A) True 
 B)False

Question 20

Graphical techniques are easy to understand and use, but are not well-suited for generating optimal strategies.

Accepted Answer

A) True 
 B)False

Exam 13: Aggregate Planning

"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes

What is the primary management challenge when implementing yield management?

What are the disadvantages common to the following two strategies: (1) varying inventory levels and (2) back ordering during periods of high demand?

Which of the following inputs helps an aggregate planner select the rate of output for a facility over the next 3 to 18 months?

Which of the following is consistent with a pure chase strategy?

Which of the following statements regarding aggregate planning in services is false?

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy, or Plan C-700 level with the remainder by subcontracting?

Top executives tend to focus their attention on which type of forecasts?

Aggregate planning would entail which of the following production aspects at BMW for a 12 month period?

Industries in which quadrant of the Yield Management Matrix are traditionally associated with revenue management? (In other words, in which quadrant are yield management techniques easiest to apply?)

Which of the following is not associated with manipulation of product or service demand?

Which of the following statements about aggregate planning is true?

The strategies of aggregate planning are broadly divided into demand options and capacity options.

A manufacturing plant has created the following forecast and would like to apply a graphical aggregate planning method. Complete the table and calculate the difference between Jan.'s forecast demand per working day vs a level production model for the entire period?

Compare the chase versus level strategy options.

Controlling the cost of labor in services involves quick response to consumer demand, on-call labor for unexpected demand, flexibility of labor for reallocation, and flexibility of hours or rate of output of individual workers.

Golden Eagle Machine Works has the following demand requirements and other data for the upcoming four quarters. What is the total cost of pursuing a chase aggregate plan over the coming year?

One question that operations managers must ask when generating an aggregate plan is what factors are likely to influence demand and by how much.

Graphical techniques are easy to understand and use, but are not well-suited for generating optimal strategies.

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

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Managing Quality

Process Strategy

Supply-Chain Management

Vehicle Routing and Scheduling

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