Question 1

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 2

Which of the following aggregate planning strategies might direct your client to a competitor?

Accepted Answer

A)  using part-time workers 
B)  subcontracting 
C)  changing inventory level 
D)  varying production rates through overtime or idle time 
E)  varying workforce size by hiring or layoffs 
A)  using part-time workers 
B)  subcontracting 
C)  changing inventory level 
D)  varying production rates through overtime or idle time 
E)  varying workforce size by hiring or layoffs

Question 3

What is the purpose of aggregate planning? Describe some demand and capacity options for implementing plans.

Accepted Answer

Aggregate planning is the determination

Question 4

Which of the following statements regarding aggregate planning is true?

Accepted Answer

A)  In a pure level strategy, production rates or workforce 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 workforce and production rate over the planning horizon. 
D)  Because service firms have no inventory, the pure chase strategy does not apply. 
E)  It turns the material requirements plan into the aggregate plan. 
A)  In a pure level strategy, production rates or workforce 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 workforce and production rate over the planning horizon. 
D)  Because service firms have no inventory, the pure chase strategy does not apply. 
E)  It turns the material requirements plan into the aggregate plan.

Question 5

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 6

How does aggregate planning in services differ from aggregate planning in manufacturing?

Accepted Answer

Aggregate planning in services differs f

Question 7

A small private university normally charges the same price-$900-per credit-hour for all courses and for all students. While the university is pretty near capacity in the fall and spring, it finds that its classrooms are only about 40% occupied during the summer session. A student of operations management (who has recently read this chapter) wonders if yield management might be useful to both the university and its students alike. This student, with help from some economics majors, estimates a demand curve for summer course enrollment. Points on this demand curve include 10000 credit-hours at the current rate of $900, 16,000 credit hours at $800, 25,000 credit-hours at $600. Based on this demand curve, what price point would best serve the university, if its objective is the greatest revenue for the summer session?

Accepted Answer

The student must consider that since 100

Question 8

A firm's demand in the next four quarters (its aggregate planning horizon) is forecast to be 90, 60, 50, and 100 units. Last quarter, the firm produced 80 units. If it uses level scheduling, the firm will hire/layoff workers?

Accepted Answer

Layoff workers to pe

Question 9

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

Accepted Answer

The answer of ________ is an approach to determine the...

Question 10

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?
 $\begin{array}{|l|l|l|l|}
\hline\text { Month } & \text { Expected } & \text { Production } & \begin{array}{l}
\text { Demand per Day } \
\text { (to the nearest }\ \text { whole unit) } 
\end{array} \
 &\text { Demand } & \text { Days } \
\hline \text { Tan. } & 1800 & 22 \
\hline\text { Feb. } & 1400 & 18& \
\hline \text { Mar. } & 1600 & 21&\\hline
\end{array}$

Accepted Answer

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

Question 11

What is disaggregation?

Accepted Answer

Disaggregation is th

Question 12

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

Accepted Answer

A)  vary production levels to meet demand requirements 
B)  vary workforce to meet demand requirements 
C)  vary production levels and workforce 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 workforce to meet demand requirements 
C)  vary production levels and workforce 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 13

Which choice below best describes the counterseasonal demand option?

Accepted Answer

A)  producing such products as lawnmowers and sunglasses during the winter 
B)  developing a mix of products that smooths out their demands 
C)  lowering prices when demand is slack 
D)  using subcontractors only when demand is excessive 
E)  the breaking of the aggregate plan into finer levels of detail 
A)  producing such products as lawnmowers and sunglasses during the winter 
B)  developing a mix of products that smooths out their demands 
C)  lowering prices when demand is slack 
D)  using subcontractors only when demand is excessive 
E)  the breaking of the aggregate plan into finer levels of detail

Question 14

Why do some firms have longer planning horizons than others?

Accepted Answer

Aggregate planning is usually considered

Question 15

Which of the following is not an advantage of level scheduling?

Accepted Answer

A)  stable employment 
B)  lower absenteeism 
C)  matching production exactly with sales 
D)  lower turnover 
E)  more employee commitment 
A)  stable employment 
B)  lower absenteeism 
C)  matching production exactly with sales 
D)  lower turnover 
E)  more employee commitment

Question 16

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)  a model that combines forecasts and costs 
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)  a model that combines forecasts and costs

Question 17

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)  Use tends to be unpredictable and price tends to be semi-fixed. 
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)  Use tends to be unpredictable and price tends to be semi-fixed.

Question 18

A firm's demand in the next four quarters (its aggregate planning horizon) is forecast to be 90, 60, 50, and 100 units. Last quarter, the firm produced 60 units. If it uses level scheduling, the firm will hire/layoff workers?

Accepted Answer

Hire workers to perm

Question 19

Planning tasks associated with loading, sequencing, expediting, and dispatching typically fall under

Accepted Answer

A)  short-range plans. 
B)  intermediate-range plans. 
C)  long-range plans. 
D)  mission-related planning. 
E)  strategic planning. 
A)  short-range plans. 
B)  intermediate-range plans. 
C)  long-range plans. 
D)  mission-related planning. 
E)  strategic planning.

Question 20

A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.

Accepted Answer

A) True 
 B)False

Exam 13: Aggregate Planning

What directly results from disaggregation of an aggregate plan?

Which of the following aggregate planning strategies might direct your client to a competitor?

What is the purpose of aggregate planning? Describe some demand and capacity options for implementing plans.

Which of the following statements regarding aggregate planning is true?

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

How does aggregate planning in services differ from aggregate planning in manufacturing?

A firm's demand in the next four quarters (its aggregate planning horizon) is forecast to be 90, 60, 50, and 100 units. Last quarter, the firm produced 80 units. If it uses level scheduling, the firm will hire/layoff workers?

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

What is disaggregation?

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

Which choice below best describes the counterseasonal demand option?

Why do some firms have longer planning horizons than others?

Which of the following is not an advantage of level scheduling?

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

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?)

A firm's demand in the next four quarters (its aggregate planning horizon) is forecast to be 90, 60, 50, and 100 units. Last quarter, the firm produced 60 units. If it uses level scheduling, the firm will hire/layoff workers?

Planning tasks associated with loading, sequencing, expediting, and dispatching typically fall under

A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.

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