Question 1

Which of these aggregate planning strategies is a capacity option?

Accepted Answer

A)  back ordering 
B)  using part-time workers 
C)  counterseasonal product mixing 
D)  changing price 
E)  promotion 
A)  back ordering 
B)  using part-time workers 
C)  counterseasonal product mixing 
D)  changing price 
E)  promotion

Question 2

Among the mathematical approaches to aggregate planning, ________ is good at working with inventories, holding costs, overtime, and subcontracting, but not with hiring and layoffs.

Accepted Answer

the transp

Question 3

What is disaggregation?

Accepted Answer

Disaggregation is th

Question 4

One question that operations managers must answer when generating an aggregate plan is whether prices or other factors should be changed to influence demand.

Accepted Answer

A) True 
 B)False

Question 5

Compare the chase strategy versus level scheduling.

Accepted Answer

The chase strategy sets production equal

Question 6

Mixed strategies in aggregate planning may utilize inventory, workforce, and production rate changes over the planning horizon.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  high variable cost and high fixed cost 
B)  high variable cost and low fixed cost 
C)  low variable cost and high fixed cost 
D)  low variable cost and low fixed cost 
E)  none of these 
A)  high variable cost and high fixed cost 
B)  high variable cost and low fixed cost 
C)  low variable cost and high fixed cost 
D)  low variable cost and low fixed cost 
E)  none of these

Question 8

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)  Mixed strategies in aggregate planning may utilize inventory, workforce, and production rate changes over the planning horizon. 
D)  Because service firms have no inventory, the chase strategy does not apply. 
E)  A disadvantage of the option of changing inventory levels is that it forces abrupt production changes. 
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)  Mixed strategies in aggregate planning may utilize inventory, workforce, and production rate changes over the planning horizon. 
D)  Because service firms have no inventory, the chase strategy does not apply. 
E)  A disadvantage of the option of changing inventory levels is that it forces abrupt production changes.

Question 9

The level scheduling strategy allows lower inventories than the pure chase strategy.

Accepted Answer

A) True 
 B)False

Question 10

What is the primary management challenge when implementing revenue management?

Accepted Answer

Identifying differen

Question 11

Which of the following statements about aggregate planning is TRUE?

Accepted Answer

A)  An advantage of the counterseasonal product and service mixing option is that it matches seasonal fluctuations without hiring/training costs. 
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 a pure level scheduling. 
D)  A disadvantage of subcontracting is that it may require skills or equipment outside the firm's areas of expertise. 
E)  The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small. 
A)  An advantage of the counterseasonal product and service mixing option is that it matches seasonal fluctuations without hiring/training costs. 
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 a pure level scheduling. 
D)  A disadvantage of subcontracting is that it may require skills or equipment outside the firm's areas of expertise. 
E)  The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small.

Question 12

Which of the following would most likely fall under the scope of only an operations manager?

Accepted Answer

A)  research and development 
B)  new product plans 
C)  capital investments 
D)  facility location/capacity 
E)  setting inventory levels 
A)  research and development 
B)  new product plans 
C)  capital investments 
D)  facility location/capacity 
E)  setting inventory levels

Question 13

Byron's Manufacturing makes tables. Demand for the next four months and capacities of the plant are shown in the table below. Unit cost on regular time is $40. Overtime cost is 150% of regular time cost. Subcontracting is available in substantial quantity at $75 per unit. Holding costs are $5 per table per month; backorders cost the firm $10 per unit per month. Byron's management believes that the transportation algorithm can be used to optimize this scheduling problem. The firm has 50 units of beginning inventory and anticipates no ending inventory.
   Answer the following questions based on the data table and solution table shown below.
Byron's Manufacturing
   Byron's Manufacturing 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) 400; (b) 250; (c) 0; (d) 550; (e) To

Question 14

Industries in which revenue management techniques are easiest to apply are those where:

Accepted Answer

A)  use tends to be predictable, and pricing tends to be fixed. 
B)  use tends to be predictable, and pricing tends to be variable. 
C)  use tends to be uncertain, and pricing tends to be fixed. 
D)  use tends to be uncertain, and pricing tends to be variable. 
E)  All of these, i.e., there is no difference. 
A)  use tends to be predictable, and pricing tends to be fixed. 
B)  use tends to be predictable, and pricing tends to be variable. 
C)  use tends to be uncertain, and pricing tends to be fixed. 
D)  use tends to be uncertain, and pricing tends to be variable. 
E)  All of these, i.e., there is no difference.

Question 15

Most people would argue that a service firm must follow chase or mixed strategies. On the other hand, most state agencies, which are clearly service-oriented, are not at all able to "chase" demand. Discuss how they manipulate demand to allow the level strategy to be used.

Accepted Answer

This is a critical-thinking item for stu

Question 16

Identify the five conditions that make revenue management of interest.

Accepted Answer

(1) service or product can be

Question 17

What is the typical time horizon for aggregate planning?

Accepted Answer

A)  less than a month 
B)  up to 3 months 
C)  3 to 18 months 
D)  over one year 
E)  over 5 years 
A)  less than a month 
B)  up to 3 months 
C)  3 to 18 months 
D)  over one year 
E)  over 5 years

Question 18

A hotel room that goes unrented, a dental appointment that no patient booked, and an airline seat that went unsold, are all examples of ________ in services.

Accepted Answer

perishable

Question 19

The textbook illustrates demand management in the form of price cuts or discounts. Can demand manipulation for aggregate planning involve price increases? Explain; provide an example.

Accepted Answer

The text did allude to price increases w

Question 20

List, in order, the five steps of the graphical method of aggregate planning. Is it possible that these steps can be properly followed and the solution properly implemented without using a graph? Explain.

Accepted Answer

The steps are:
1. Determine the demand i

Exam 12: Aggregate Planning and Sop

Which of these aggregate planning strategies is a capacity option?

Among the mathematical approaches to aggregate planning, ________ is good at working with inventories, holding costs, overtime, and subcontracting, but not with hiring and layoffs.

What is disaggregation?

One question that operations managers must answer when generating an aggregate plan is whether prices or other factors should be changed to influence demand.

Compare the chase strategy versus level scheduling.

Mixed strategies in aggregate planning may utilize inventory, workforce, and production rate changes over the planning horizon.

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

Which of the following statements regarding aggregate planning is TRUE?

The level scheduling strategy allows lower inventories than the pure chase strategy.

What is the primary management challenge when implementing revenue management?

Which of the following statements about aggregate planning is TRUE?

Which of the following would most likely fall under the scope of only an operations manager?

Industries in which revenue management techniques are easiest to apply are those where:

Most people would argue that a service firm must follow chase or mixed strategies. On the other hand, most state agencies, which are clearly service-oriented, are not at all able to "chase" demand. Discuss how they manipulate demand to allow the level strategy to be used.

Identify the five conditions that make revenue management of interest.

What is the typical time horizon for aggregate planning?

A hotel room that goes unrented, a dental appointment that no patient booked, and an airline seat that went unsold, are all examples of ________ in services.

The textbook illustrates demand management in the form of price cuts or discounts. Can demand manipulation for aggregate planning involve price increases? Explain; provide an example.

List, in order, the five steps of the graphical method of aggregate planning. Is it possible that these steps can be properly followed and the solution properly implemented without using a graph? Explain.

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

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