Exam 13: Aggregate Planning

__________ is a capacity option that works especially well in the service sector where labor needs are relatively unskilled.

Dependence on an external source of supply is found in which of the following aggregate planning strategies?

Finding an ideal mixed strategy is complicated by the huge number of possible strategies.

A firm's demand in the next four quarters (its aggregate planning horizon) is forecast to be 80, 50, 40, and 90 units. Last quarter, the firm produced 60 units. If it uses level scheduling, the firm will.

Which of these is not a characteristic that makes yield management attractive to organizations that have perishable inventory?

Aggregate planning in manufacturing ties organizational strategic goals to a production plan.

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

To use yield management strategies a business should have which combination of costs?

Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.

__________ is a complex aggregate planning technique, using models that may be difficult to build and for managers to understand.

Among the mathematical approaches to aggregate planning, __________ is good at working with inventories, holding costs, overtime, and subcontracting, but not with hiring and layoffs.

A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units and in period 2 demand is 150 units. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 50 hours of overtime are available for $15/hour each period. If holding costs are $2 per unit each period, how many hours of regular employment should be used in period 1 (assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour)?

List, in order, the five steps of the graphical method of aggregate planning. Is it possible that these steps can be properly followed and the solution properly implemented without using a graph? Explain.

A large consulting firm is deciding on if its workforce should be expanded, maintained, or decreased. Suppose that demand is given in week long projects, and that a consultant can work on 3 projects each month (1 week off for personal leave and/or other duties such as conferences, etc). Currently there are 25 consultants. Ten consultants are trained for LEAN and 15 for Six Sigma, with 5 of those consultants being overlaps (the consultant is trained for BOTH LEAN and Six Sigma). Assume that all consultants can do the general work. Complete the table (the forecast period is an upcoming month) and prepare a recommendation.

A hotel chain is considering using yield management to increase profits. Its plan is to sell unsold rooms at a discounted rate very close to the night of stay. For example, an unsold Friday night room would be discounted early in the week. It estimates that the percentage of sold rooms (total) would be equal to 50+X, where X is the % discounted off of regular price. Meanwhile the % of rooms sold for full price compared to the discount would be 100-2X (some people would wait to book gambling a discount would happen). Find the ideal discount %.

The __________ is a formal planning model built around a manager's experience and performance.

Aggregate planning for service firms that provide intangible output deals mainly with

Which of the following is not consistent with a pure level strategy?

How does "yield management" impact the aggregate plan?

Plans for new product development generally fall within the scope of aggregate planning.