Question 1

The __________ strategy maintains a constant output rate, or work force level, over the planning horizon.

Accepted Answer

The answer of The __________ strategy maintains a constant output...

Question 2

Which of the following aggregate planning strategies is a "capacity option"?

Accepted Answer

A)  influencing demand by changing price 
B)  counterseasonal product mixing 
C)  influencing demand by extending lead times 
D)  changing inventory levels 
E)  influencing demand by back ordering 
A)  influencing demand by changing price 
B)  counterseasonal product mixing 
C)  influencing demand by extending lead times 
D)  changing inventory levels 
E)  influencing demand by back ordering

Question 3

Which of the following statements regarding aggregate planning is true?

Accepted Answer

A)  In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon. 
B)  A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies. 
C)  In a mixed strategy, there are changes in both inventory and in work force and production rate over the planning horizon. 
D)  Because service firms have no inventory, the pure chase strategy does not apply. 
E)  All of the above are true. 
A)  In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon. 
B)  A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies. 
C)  In a mixed strategy, there are changes in both inventory and in work force and production rate over the planning horizon. 
D)  Because service firms have no inventory, the pure chase strategy does not apply. 
E)  All of the above are true.

Question 4

Advertising and promotion are methods of manipulating product or service supply in aggregate planning.

Accepted Answer

A) True 
 B)False

Question 5

Which of these aggregate planning strategies adjusts capacity to match demand?

Accepted Answer

A)  back ordering 
B)  using part-time workers 
C)  counterseasonal product mixing 
D)  changing price 
E)  None of the above is a capacity option. 
A)  back ordering 
B)  using part-time workers 
C)  counterseasonal product mixing 
D)  changing price 
E)  None of the above is a capacity option.

Question 6

__________ work with a few variables at a time and are easy to understand and use.

Accepted Answer

The answer of __________ work with a few variables at...

Question 7

Explain the fundamental difference between the "capacity options" and the "demand options" of aggregate planning strategies.

Accepted Answer

Capacity options do not try to change th

Question 8

In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity.

Accepted Answer

A) True 
 B)False

Question 9

The use of part-time workers as an aggregate planning option may be less costly than using full-time workers, but may also reduce quality levels.

Accepted Answer

A) True 
 B)False

Question 10

Fairview Industries is preparing its aggregate plan for the second half of the year. The table below contains monthly demand estimates and working days per month. Complete the table by computing total demand, demand per day (for each month), and the average requirement (in units per day) over the six-month planning horizon. Prepare a graph of forecast demand and level production, by months, for the planning period. Label your graph carefully.

Accepted Answer

The answer of Fairview Industries is preparing its aggregate plan...

Question 11

Which of these is among the demand options of aggregate planning?

Accepted Answer

A)  subcontracting 
B)  back-ordering during high-demand periods 
C)  changing inventory levels 
D)  varying workforce size 
E)  All of the above are demand options. 
A)  subcontracting 
B)  back-ordering during high-demand periods 
C)  changing inventory levels 
D)  varying workforce size 
E)  All of the above are demand options.

Question 12

What four things are needed to develop an aggregate plan?

Accepted Answer

To develop an aggregate plan, you need a

Question 13

Disaggregation is the process of breaking the aggregate plan into greater detail; one example of this detail is the Master Production Schedule.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following aggregate planning models is based primarily upon a manager's past experience?

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 15

Washington Laundry Products, Inc., makes commercial and industrial laundry machines (the kinds hotels use), and has these aggregate demand requirements for the next six months. The firm has regular capacity for 200 units, and overtime capacity for 40 more. Currently, subcontracting can supply up to 100 units per month, but the subcontracting firm may soon be unavailable.
   Which is cheaper: to produce level, incurring back orders and inventory charges; or to produce a base quantity of 120, using first, overtime, then subcontracting, to meet demand?

Accepted Answer

The cost of the level strategy is $1,326

Question 16

A hotel room that goes unrented, a dental appointment that no patient booked, and an airline seat that went unsold, are all examples of __________ in services inventory.

Accepted Answer

The answer of A hotel room that goes unrented, a...

Question 17

In aggregate planning, which one of the following is not a basic option for altering demand?

Accepted Answer

A)  promotion 
B)  subcontracting 
C)  back ordering 
D)  pricing 
E)  All are demand options. 
A)  promotion 
B)  subcontracting 
C)  back ordering 
D)  pricing 
E)  All are demand options.

Question 18

The only objective of aggregate planning is to minimize the cost of matching capacity to demand over the planning period.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following aggregate planning strategies is a "demand option"?

Accepted Answer

A)  changing price 
B)  subcontracting 
C)  varying production levels 
D)  changing inventory levels 
E)  using part-time workers 
A)  changing price 
B)  subcontracting 
C)  varying production levels 
D)  changing inventory levels 
E)  using part-time workers

Question 20

Frito-Lay uses aggregate planning to match capacity with demand because of the __________ associated with its specialized processes.

Accepted Answer

A)  high variable cost and high fixed cost 
B)  high variable cost and low fixed cost 
C)  low variable cost and high fixed cost 
D)  low variable cost and low fixed cost 
E)  none of the above 
A)  high variable cost and high fixed cost 
B)  high variable cost and low fixed cost 
C)  low variable cost and high fixed cost 
D)  low variable cost and low fixed cost 
E)  none of the above

Exam 13: Aggregate Planning

The __________ strategy maintains a constant output rate, or work force level, over the planning horizon.

Which of the following aggregate planning strategies is a "capacity option"?

Which of the following statements regarding aggregate planning is true?

Advertising and promotion are methods of manipulating product or service supply in aggregate planning.

Which of these aggregate planning strategies adjusts capacity to match demand?

__________ work with a few variables at a time and are easy to understand and use.

Explain the fundamental difference between the "capacity options" and the "demand options" of aggregate planning strategies.

In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity.

The use of part-time workers as an aggregate planning option may be less costly than using full-time workers, but may also reduce quality levels.

Which of these is among the demand options of aggregate planning?

What four things are needed to develop an aggregate plan?

Disaggregation is the process of breaking the aggregate plan into greater detail; one example of this detail is the Master Production Schedule.

Which of the following aggregate planning models is based primarily upon a manager's past experience?

A hotel room that goes unrented, a dental appointment that no patient booked, and an airline seat that went unsold, are all examples of __________ in services inventory.

In aggregate planning, which one of the following is not a basic option for altering demand?

The only objective of aggregate planning is to minimize the cost of matching capacity to demand over the planning period.

Which of the following aggregate planning strategies is a "demand option"?

Frito-Lay uses aggregate planning to match capacity with demand because of the __________ associated with its specialized processes.

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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