Question 1

Revenue management is MOST likely to be used in which one of the following situations?

Accepted Answer

A)  a fast-food restaurant with wide demand fluctuations during the day 
B)  a dental clinic that wants to fill its appointment book 
C)  a firm with a good counterseasonal product mix 
D)  a shipping company that can change its fleet size easily 
E)  an airline attempting to fill "perishable" seats at maximum revenue 
A)  a fast-food restaurant with wide demand fluctuations during the day 
B)  a dental clinic that wants to fill its appointment book 
C)  a firm with a good counterseasonal product mix 
D)  a shipping company that can change its fleet size easily 
E)  an airline attempting to fill "perishable" seats at maximum revenue

Question 2

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

Accepted Answer

A)  varying production rates through overtime or idle time 
B)  subcontracting 
C)  using part-time workers 
D)  back ordering during high demand periods 
E)  hiring and laying off 
A)  varying production rates through overtime or idle time 
B)  subcontracting 
C)  using part-time workers 
D)  back ordering during high demand periods 
E)  hiring and laying off

Question 3

Which of the following actions is consistent with the use of level scheduling?

Accepted Answer

A)  use inventory to meet demand requirements 
B)  use overtime to meet higher-than-average demand requirements 
C)  vary production levels to meet demand requirements 
D)  vary workforce to meet demand requirements 
E)  none of these 
A)  use inventory to meet demand requirements 
B)  use overtime to meet higher-than-average demand requirements 
C)  vary production levels to meet demand requirements 
D)  vary workforce to meet demand requirements 
E)  none of these

Question 4

To make revenue management work, the company needs to manage what three issues?

Accepted Answer

(1) multiple pricing structure

Question 5

The ________ strategy sets production equal to forecasted demand.

Accepted Answer

The answer of The ________ strategy sets production equal to...

Question 6

In the service sector, 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 7

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 8

What is the effort to plan the coordination of demand forecasts with functional areas of the firm and its supply chain?

Accepted Answer

A)  enterprise resource planning 
B)  material requirements planning 
C)  capacity planning 
D)  sales and operations planning 
E)  new product development 
A)  enterprise resource planning 
B)  material requirements planning 
C)  capacity planning 
D)  sales and operations planning 
E)  new product development

Question 9

Revenue (or yield) management is best described as:

Accepted Answer

A)  a situation where management yields to labor demands. 
B)  a situation where the labor union yields to management demands. 
C)  a process designed to increase the rate of output. 
D)  allocation of scarce resources to customers at prices that will maximize revenue. 
E)  management's selection of a product mix yielding maximum profits. 
A)  a situation where management yields to labor demands. 
B)  a situation where the labor union yields to management demands. 
C)  a process designed to increase the rate of output. 
D)  allocation of scarce resources to customers at prices that will maximize revenue. 
E)  management's selection of a product mix yielding maximum profits.

Question 10

The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.

Accepted Answer

A) True 
 B)False

Question 11

What are successful techniques of controlling the cost of labor involved in service firms?

Accepted Answer

1. accurate scheduling of labor-hours to

Question 12

Identify (a) the demand options for aggregate planning; and (b) the capacity (supply) options for aggregate planning.

Accepted Answer

(a) Demand options are: influencing dema

Question 13

Describe the advantages and limitations of the transportation method for aggregate planning.

Accepted Answer

Advantages include that it provides an o

Question 14

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
   Which of the following production plans is best: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy, or Plan C-700 level with the remainder by subcontracting?

Accepted Answer

Plan A has cost of $435,000, plan B has

Question 15

Under which of the following do planning tasks associated with production planning and budgeting, as well as setting employment, inventory, and subcontracting levels, typically fall?

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 16

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

Accepted Answer

Using part

Question 17

Which of these is among the demand options of aggregate planning?

Accepted Answer

A)  subcontracting 
B)  back-ordering during high-demand periods 
C)  changing inventory levels 
D)  varying workforce size 
E)  varying production rates through overtime or idle time 
A)  subcontracting 
B)  back-ordering during high-demand periods 
C)  changing inventory levels 
D)  varying workforce size 
E)  varying production rates through overtime or idle time

Question 18

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

Accepted Answer

A)  high variable and high fixed 
B)  low variable and high fixed 
C)  high variable and low fixed 
D)  low variable and low fixed 
E)  either A or B 
A)  high variable and high fixed 
B)  low variable and high fixed 
C)  high variable and low fixed 
D)  low variable and low fixed 
E)  either A or B

Question 19

Which of the following aggregate planning options is NOT associated with manipulation of product or service demand?

Accepted Answer

A)  price cuts or discounts 
B)  promotion 
C)  subcontracting 
D)  counterseasonal products or services 
E)  advertising 
A)  price cuts or discounts 
B)  promotion 
C)  subcontracting 
D)  counterseasonal products or services 
E)  advertising

Question 20

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

Accepted Answer

A)  changing price 
B)  subcontracting 
C)  varying production levels 
D)  changing inventory levels 
E)  using part-time workers 
A)  changing price 
B)  subcontracting 
C)  varying production levels 
D)  changing inventory levels 
E)  using part-time workers

Exam 12: Aggregate Planning and Sop

Revenue management is MOST likely to be used in which one of the following situations?

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

Which of the following actions is consistent with the use of level scheduling?

To make revenue management work, the company needs to manage what three issues?

The ________ strategy sets production equal to forecasted demand.

In the service sector, which of the following aggregate planning strategies might direct your client to a competitor?

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

What is the effort to plan the coordination of demand forecasts with functional areas of the firm and its supply chain?

Revenue (or yield) management is best described as:

The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.

What are successful techniques of controlling the cost of labor involved in service firms?

Identify (a) the demand options for aggregate planning; and (b) the capacity (supply) options for aggregate planning.

Describe the advantages and limitations of the transportation method for aggregate planning.

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Which of the following production plans is best: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy, or Plan C-700 level with the remainder by subcontracting?

Under which of the following do planning tasks associated with production planning and budgeting, as well as setting employment, inventory, and subcontracting levels, typically fall?

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

Which of these is among the demand options of aggregate planning?

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

Which of the following aggregate planning options is NOT associated with manipulation of product or service demand?

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

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Operations Strategy in a Global Environment

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