Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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)  Disaggregation results in the material purchasing system. 
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)  Disaggregation results in the material purchasing system.

Question 3

"Yield management" is best described as

Accepted Answer

A)  a situation where management yields to labour demands. 
B)  a situation where the labour union yields to management demands. 
C)  a process designed to increase the rate of output. 
D)  capacity allocation to different classes of customers in order to maximize profits. 
E)  management's selection of a product mix yielding maximum profits. 
A)  a situation where management yields to labour demands. 
B)  a situation where the labour union yields to management demands. 
C)  a process designed to increase the rate of output. 
D)  capacity allocation to different classes of customers in order to maximize profits. 
E)  management's selection of a product mix yielding maximum profits.

Question 4

Houma Containers, Inc., makes industrial fibreglass tanks that are used on offshore oil platforms. Demand for the next four months and capacities of the plant are shown in the table below. Unit cost on regular time is $400. Overtime cost is 150% of regular time cost. Subcontracting is available in substantial quantity but at a very high cost, $1100 per unit. Holding costs are $200 per tank per month; back orders cost the firm $1000 per unit per month. Houma's management believes that the transportation algorithm can be used to optimize this scheduling problem. The firm has no beginning inventory and anticipates no ending inventory.
 $$\begin{array} { | l | c | c | c | c | } 
\hline & \text { March } & \text { April } & \text { May } & \text { June } \
\hline \text { Demand } & 300 & 500 & 300 & 350 \
\hline \text { Regular capacity } & 200 & 200 & 250 & 250 \
\hline \text { Overtime capacity } & 50 & 50 & 50 & 50 \
\hline \text { Subcontract cap. } & 150 & 100 & 100 & 150 \
\hline
\end{array}$$ a. How many units will be produced on regular time in June?
b. How many units will be produced by subcontracting over the four-month period?
c. What will be the inventory at the end of April?
d. What will be total production from all sources in April?
e. What will be the total cost of the optimum solution?
f. Does the firm utilize the expensive options of subcontracting and back ordering? When; why?

Accepted Answer

(a) 250; (b) 350; (c) 0, and 50 units ar

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

Which of the following statements about aggregate planning is true?

"Yield management" is best described as

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy and Sustainability

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

Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Supply Chain Management Analytics

Sustainability in the Supply Chain

Statistical Process Control

Capacity and Constraint Management

Filters

Exam 13: Aggregate Planning

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

Which of the following statements about aggregate planning is true?

"Yield management" is best described as

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy and Sustainability

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

Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Supply Chain Management Analytics

Sustainability in the Supply Chain

Statistical Process Control

Capacity and Constraint Management

Filters