Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. \[\begin{array} { | l | l | l | l | } \hline \text { Quarter } & \text { Demand } & \text { Previous quarter's output } & 800 \text { units } \\ \hline 1 & 700 & \text { Beginning inventory } & 0 \text { units } \\ \hline 2 & 900 & \text { Stockout cost } & \$ 100 \text { per unit } \\ \hline 3 & 1200 & \text { Inventory holding cost } & \$ 10 \text { per unit at end of quarter } \\ \hline 4 & 600 & \text { Hiring workers } & \$ 20 \text { per unit } \\ \hline & & \text { Laying off workers } & \$ 40 \text { per unit } \\ \hline & & \text { Subcontracting cost } & \$ 200 \text { per unit } \\ \hline & & \text { Unit cost } & \$ 100 \text { per unit } \\ \hline \end{array}\] 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?

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

Exam 13: Aggregate Planning

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 800 units 1 700 Beginning inventory 0 units 2 900 Stockout cost \ 100 per unit 3 1200 Inventory holding cost \ 10 per unit at end of quarter 4 600 Hiring workers \ 20 per unit Laying off workers \ 40 per unit Subcontracting cost \ 200 per unit Unit cost \ 100 per unit 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?

(Essay)

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Question 121

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

(Multiple Choice)

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Question 122

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

(Multiple Choice)

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Question 123

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

(Multiple Choice)

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Question 124

If a service firm were to attempt a pure level strategy for aggregate planning, should its level of output be at average demand, peak demand, or minimum demand?

(Essay)

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Question 125

Golden Eagle Machine Works has the following demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 2500 units 1 2300 Beginning inventory 200 units 2 2400 Stockout (backorder) cost \ 50 per unit 3 2600 Inventory holding cost \ 10 per unit at end of quarter 4 2100 Hiring workers \ 4 per unit Laying off workers \ 8 per unit Unit cost \ 30 per unit What is the total cost of pursuing a chase aggregate plan over the coming year?

(Essay)

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Question 126

Which of the following is the term used for medium range capacity planning with a time horizon of three to eighteen months?

(Multiple Choice)

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Question 127

A small private university normally charges the same price-$600-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 70% 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 7000 credit-hours at the current rate of $600, 8,000 credit hours at $500, 10,000 credit-hours at $400. Based on this demand curve, what price point would best serve the university, if its objective is the greatest revenue for the summer session?

(Essay)

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Question 128

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

(Multiple Choice)

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Question 129

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

(Multiple Choice)

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Question 130

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

(True/False)

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Question 131

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

(Multiple Choice)

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Question 132

Which of the following actions is consistent with the use of pure level strategy?

(Multiple Choice)

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Question 133

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. Month Tuly 18,000 Day August 21,000 23 September 17,500 21 October 12,500 21 November 12,000 20 December TOTAL $Fairview Industries is preparing its aggregate plan for the second half of the year. The table below contains monthly demand estimates and working days per month. Complete the table by computing total demand, demand per day (for each month), and the average requirement (in units per day) over the six-month planning horizon. Prepare a graph of forecast demand and level production, by months, for the planning period. Label your graph carefully. \begin{array} { | l | c | c | c | } \hline \text { Month } & \underline { \underline { \text { Expected } } } & \underline { \text { Production } } & \underline { \text { Demand per } } \\ \hline \text { Tuly } & 18,000 & \underline { \text { Days } } & \text { Day } \\ \hline \text { August } & 21,000 & 23 & \\ \hline \text { September } & 17,500 & 21 & \\ \hline \text { October } & 12,500 & 21 & \\ \hline \text { November } & 12,000 & 20 & \\ \hline \text { December } & \underline { 13,500 } & \underline { 21 } & \\ \hline \text { TOTAL } & & & \\ \hline \end{array}$

(Essay)

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Question 134

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

(Multiple Choice)

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Question 135

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

(Multiple Choice)

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Question 136

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

(Short Answer)

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Question 137

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

(True/False)

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Question 138

Compare the chase versus level strategy options.

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Question 139

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

(Short Answer)

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Question 140

Showing 121 - 140 of 144

Exam 13: Aggregate Planning

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

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

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

If a service firm were to attempt a pure level strategy for aggregate planning, should its level of output be at average demand, peak demand, or minimum demand?

Which of the following is the term used for medium range capacity planning with a time horizon of three to eighteen months?

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

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

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

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

Which of the following actions is consistent with the use of pure level strategy?

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

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

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

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

Compare the chase versus level strategy options.

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

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