Question 1

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 2

Disaggregation:

Accepted Answer

A)  breaks the aggregate plan into greater detail. 
B)  transforms the master production schedule into an aggregate plan. 
C)  calculates the optimal price points for yield management. 
D)  converts product schedules and labor assignments to a facility-wide plan. 
E)  is an assumption required for the use of the transportation model in aggregate planning. 
A)  breaks the aggregate plan into greater detail. 
B)  transforms the master production schedule into an aggregate plan. 
C)  calculates the optimal price points for yield management. 
D)  converts product schedules and labor assignments to a facility-wide plan. 
E)  is an assumption required for the use of the transportation model in aggregate planning.

Question 3

Aggregate planning occurs over the medium or intermediate future of 3 to 6 months.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  Approaches to aggregate planning differ by the type of service provided. 
B)  Some service organizations conduct aggregate planning in exactly the same way as manufacturing firms, but with demand management taking a more active role. 
C)  Aggregate planning in some service industries may be easier than in manufacturing. 
D)  Labor is the primary aggregate planning vehicle. 
E)  Level scheduling is far more common than using a chase strategy. 
A)  Approaches to aggregate planning differ by the type of service provided. 
B)  Some service organizations conduct aggregate planning in exactly the same way as manufacturing firms, but with demand management taking a more active role. 
C)  Aggregate planning in some service industries may be easier than in manufacturing. 
D)  Labor is the primary aggregate planning vehicle. 
E)  Level scheduling is far more common than using a chase strategy.

Question 5

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 6

Houma Containers, Inc., makes industrial fiberglass 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; backorders 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.
   Answer the following questions based on the data table and solution table shown below.
Houma Containers
   Houma Containers Solution
   (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 backordering? When; why?

Accepted Answer

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

Question 7

Which of the following is NOT consistent with level scheduling?

Accepted Answer

A)  varying the use of subcontracting 
B)  finding alternative work for employees during low-demand periods 
C)  using built-up inventory to meet demand requirements 
D)  varying production levels and/or workforce to meet demand requirements 
E)  All of these are inconsistent with the pure level strategy. 
A)  varying the use of subcontracting 
B)  finding alternative work for employees during low-demand periods 
C)  using built-up inventory to meet demand requirements 
D)  varying production levels and/or workforce to meet demand requirements 
E)  All of these are inconsistent with the pure level strategy.

Question 8

A manufacturer of industrial seafood processing equipment wants you to develop an aggregate plan for the four quarters of the upcoming year using the following data on demand and capacity. No backordering is allowed.
   (a) Find the optimal plan using the transportation method.
(b) What is the cost of the plan?
(c) Does any regular time capacity go unused? How much in what periods?
(d) What capacity went unused in this solution? (List in detail.)

Accepted Answer

(a) The optimal plan appears in the tabl

Question 9

Describe the advantages and limitations of the graphical method of aggregate planning.

Accepted Answer

Advantages include that it is easy to un

Question 10

Which of the following aggregate planning methods does not work if hiring and layoffs are possible?

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 11

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 to determine the relevant costs 
C)  a mathematical model that will minimize costs over the intermediate planning period 
D)  an aggregate demand forecast for an intermediate planning period 
E)  All of these are needed for aggregate planning. 
A)  a logical overall unit for measuring sales and output 
B)  a method to determine the relevant costs 
C)  a mathematical model that will minimize costs over the intermediate planning period 
D)  an aggregate demand forecast for an intermediate planning period 
E)  All of these are needed for aggregate planning.

Question 12

Which choice best describes level scheduling?

Accepted Answer

A)  Daily production is variable from period to period. 
B)  Subcontracting, hiring, and layoffs manipulate supply. 
C)  Price points are calculated to match demand to capacity. 
D)  Inventory goes up or down to buffer the difference between demand and production. 
E)  Overtime is used to handle seasonal demand fluctuations. 
A)  Daily production is variable from period to period. 
B)  Subcontracting, hiring, and layoffs manipulate supply. 
C)  Price points are calculated to match demand to capacity. 
D)  Inventory goes up or down to buffer the difference between demand and production. 
E)  Overtime is used to handle seasonal demand fluctuations.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The aggregate planning process usually includes dispatching of individual jobs.

Accepted Answer

A) True 
 B)False

Question 15

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?

Accepted Answer

Requirements total 9200 units,

Question 16

________ 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 17

________ maintains a constant output rate, or workforce level, over the planning horizon.

Accepted Answer

The answer of ________ maintains a constant output rate, or...

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

This is a critical-thinking question for

Question 20

Top executives tend to focus their attention on which type of forecasts?

Accepted Answer

A)  short-range 
B)  intermediate-range 
C)  long-range 
D)  weather 
E)  the forecast for the next day's absentee levels 
A)  short-range 
B)  intermediate-range 
C)  long-range 
D)  weather 
E)  the forecast for the next day's absentee levels

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

Disaggregation:

Aggregate planning occurs over the medium or intermediate future of 3 to 6 months.

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

Which of the following is NOT consistent with level scheduling?

Describe the advantages and limitations of the graphical method of aggregate planning.

Which of the following aggregate planning methods does not work if hiring and layoffs are possible?

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

Which choice best describes level scheduling?

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

The aggregate planning process usually includes dispatching of individual jobs.

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?

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

________ maintains a constant output rate, or workforce level, over the planning horizon.

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

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

Top executives tend to focus their attention on which type of forecasts?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategies

Location 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

Applying Analytics to Big Data in Operations Management

Filters

Exam 12: Aggregate Planning and Sop

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

Disaggregation:

Aggregate planning occurs over the medium or intermediate future of 3 to 6 months.

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

Which of the following is NOT consistent with level scheduling?

Describe the advantages and limitations of the graphical method of aggregate planning.

Which of the following aggregate planning methods does not work if hiring and layoffs are possible?

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

Which choice best describes level scheduling?

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

The aggregate planning process usually includes dispatching of individual jobs.

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?

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

________ maintains a constant output rate, or workforce level, over the planning horizon.

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

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

Top executives tend to focus their attention on which type of forecasts?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategies

Location 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

Applying Analytics to Big Data in Operations Management

Filters