Question 1

Which of the following is not a characteristic of aggregate planning for services?

Accepted Answer

A)  Labour is usually the most constraining resource for services. 
B)  Service capacity must be provided at the appropriate place and time. 
C)  Demand for services is easy to predict. 
D)  Capacity for services is difficult to predict. 
A)  Labour is usually the most constraining resource for services. 
B)  Service capacity must be provided at the appropriate place and time. 
C)  Demand for services is easy to predict. 
D)  Capacity for services is difficult to predict. C

Question 2

___ represent a restriction on decision variable values for a linear programming problem.

Accepted Answer

A)  Surpluses 
B)  Constraints 
C)  Extreme points 
D)  Optimal points 
A)  Surpluses 
B)  Constraints 
C)  Extreme points 
D)  Optimal points B

Question 3

The following information relates to a company's aggregate production planning activities:   Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a level production strategy is used then the inventory at the end of quarter 3 is

Accepted Answer

A)  0. 
B)  5,000. 
C)  10,000. 
D)  17,500. 
A)  0. 
B)  5,000. 
C)  10,000. 
D)  17,500. D

Question 4

One of several strategies for managing demand is to shift it into other time periods using incentives, sales promotions, and advertising.

Accepted Answer

A) True 
 B)False

Question 5

An economic strategy for adjusting demand can include adjusting capacity or managing demand.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following provides managers with a convenient means for analyzing resource usage?

Accepted Answer

A)  sensitivity range 
B)  marginal value 
C)  objective function 
D)  constraints 
A)  sensitivity range 
B)  marginal value 
C)  objective function 
D)  constraints

Question 7

The level strategy for adjusting capacity is only appropriate when there is no variation in demand.

Accepted Answer

A) True 
 B)False

Question 8

Problems associated with using a part-time workers strategy for adjusting capacity include all of the following except

Accepted Answer

A)  high turnover. 
B)  accelerated training requirements. 
C)  scheduling difficulties. 
D)  high retirement costs. 
A)  high turnover. 
B)  accelerated training requirements. 
C)  scheduling difficulties. 
D)  high retirement costs.

Question 9

The simplex method is a solution method used for linear programming problems that have

Accepted Answer

A)  no constraints. 
B)  at least one constraint. 
C)  at least two constraints. 
D)  at least three constraints. 
A)  no constraints. 
B)  at least one constraint. 
C)  at least two constraints. 
D)  at least three constraints.

Question 10

A hot dog vendor must decide on Monday how many hot dogs to have available for the coming Saturday's football game. Each hot dog costs the vendor $3.00 and is sold for $5.00. After the game any unsold hot dogs are discounted and sold to the university cafeteria for $1.75. The vendor believes that the demand for hot dogs follows the probability distribution shown below:   The optimal number of hot dogs the vendor should order for next Saturday's game is

Accepted Answer

A)  1000. 
B)  1500. 
C)  2000. 
D)  3000. 
A)  1000. 
B)  1500. 
C)  2000. 
D)  3000.

Question 11

A hot dog vendor must decide on Monday how many hot dogs to have available for the coming Saturday's football game. Each hot dog costs the vendor $3.00 and is sold for $5.00. After the game any unsold hot dogs are discounted and sold to the university cafeteria for $1.75. The vendor believes that the demand for hot dogs follows the probability distribution shown below:   The vendor's cost of overestimating demand, Co, is

Accepted Answer

A)  $5.00. 
B)  $3.00. 
C)  $1.75. 
D)  $1.25. 
A)  $5.00. 
B)  $3.00. 
C)  $1.75. 
D)  $1.25.

Question 12

Most companies use mixed strategies for managing demand.

Accepted Answer

A) True 
 B)False

Question 13

A hotel manager must decide how many rooms to overbook. Room rates are $125 per night and each room costs $45 to maintain. A bumped customer is sent to another hotel at a cost of $75. Given the distribution of no-shows below, how many rooms should the manager overbook?

Accepted Answer

A)  Overbook 9 rooms. 
B)  Overbook 10 rooms. 
C)  Overbook 11 rooms. 
D)  Overbook 12 rooms. 
A)  Overbook 9 rooms. 
B)  Overbook 10 rooms. 
C)  Overbook 11 rooms. 
D)  Overbook 12 rooms.

Question 14

Most real-world linear programming problems are solved graphically.

Accepted Answer

A) True 
 B)False

Question 15

Retailers encouraging earlier holiday gift buying is an example of which of the following demand management strategies?

Accepted Answer

A)  demand shifting 
B)  countercyclical product offerings 
C)  information sharing 
D)  resource allocation 
A)  demand shifting 
B)  countercyclical product offerings 
C)  information sharing 
D)  resource allocation

Question 16

The following information relates to a company's aggregate production planning activities:   Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a chase demand strategy is used then the total firing cost for the plan is

Accepted Answer

A)  $10,000. 
B)  $15,000. 
C)  $20,000. 
D)  $25,000. 
A)  $10,000. 
B)  $15,000. 
C)  $20,000. 
D)  $25,000.

Question 17

The following information relates to a company's aggregate production planning activities:   Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a chase demand strategy is used then the number of workers fired at the start of quarter 3 is

Accepted Answer

A)  0. 
B)  50. 
C)  60. 
D)  100. 
A)  0. 
B)  50. 
C)  60. 
D)  100.

Question 18

Given the information below, the number of available-to-promise units in period 2 is

Accepted Answer

A)  400 
B)  150 
C)  50 
D)  0 
A)  400 
B)  150 
C)  50 
D)  0

Question 19

Reconciliation of the sales plan and the operations plan may include adjusting capacity and/or managing demand.

Accepted Answer

A) True 
 B)False

Question 20

A bagel company bakes a specialty bagel that it sells by the dozen every day. These specialty bagels can only be baked early in the morning before the store opens for business. The company estimates that the daily demand (in dozens) for its specialty bagel is distributed as follows:   Specialty bagels are sold by the dozen only at a cost of $9.00 per dozen. The cost to make one bagel is $0.50. Leftover specialty bagels are sold by the dozen the next day for a 50% discount. The bagel company's cost of overestimating demand, Co, is

Accepted Answer

A)  $1.50. 
B)  $3.00. 
C)  $4.50. 
D)  $6.00. 
A)  $1.50. 
B)  $3.00. 
C)  $4.50. 
D)  $6.00.

Which of the following is not a characteristic of aggregate planning for services?

___ represent a restriction on decision variable values for a linear programming problem.

One of several strategies for managing demand is to shift it into other time periods using incentives, sales promotions, and advertising.

An economic strategy for adjusting demand can include adjusting capacity or managing demand.

Which of the following provides managers with a convenient means for analyzing resource usage?

The level strategy for adjusting capacity is only appropriate when there is no variation in demand.

Problems associated with using a part-time workers strategy for adjusting capacity include all of the following except

The simplex method is a solution method used for linear programming problems that have

Most companies use mixed strategies for managing demand.

A hotel manager must decide how many rooms to overbook. Room rates are $125 per night and each room costs $45 to maintain. A bumped customer is sent to another hotel at a cost of $75. Given the distribution of no-shows below, how many rooms should the manager overbook?

Most real-world linear programming problems are solved graphically.

Retailers encouraging earlier holiday gift buying is an example of which of the following demand management strategies?

Given the information below, the number of available-to-promise units in period 2 is

Reconciliation of the sales plan and the operations plan may include adjusting capacity and/or managing demand.

Introduction to Operations and Supply Chain Management

Quality Management

Statistical Process Control

Product Design

Service Design

Processes and Technology

Capacity and Facilities Design

Human Resources

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Resource Planning

Lean Systems

Scheduling

Filters

Exam 14: Sales and Operations Planning

Which of the following is not a characteristic of aggregate planning for services?

___ represent a restriction on decision variable values for a linear programming problem.

One of several strategies for managing demand is to shift it into other time periods using incentives, sales promotions, and advertising.

An economic strategy for adjusting demand can include adjusting capacity or managing demand.

Which of the following provides managers with a convenient means for analyzing resource usage?

The level strategy for adjusting capacity is only appropriate when there is no variation in demand.

Problems associated with using a part-time workers strategy for adjusting capacity include all of the following except

The simplex method is a solution method used for linear programming problems that have

Most companies use mixed strategies for managing demand.

A hotel manager must decide how many rooms to overbook. Room rates are $125 per night and each room costs $45 to maintain. A bumped customer is sent to another hotel at a cost of $75. Given the distribution of no-shows below, how many rooms should the manager overbook?

Most real-world linear programming problems are solved graphically.

Retailers encouraging earlier holiday gift buying is an example of which of the following demand management strategies?

Given the information below, the number of available-to-promise units in period 2 is

Reconciliation of the sales plan and the operations plan may include adjusting capacity and/or managing demand.

Introduction to Operations and Supply Chain Management

Quality Management

Statistical Process Control

Product Design

Service Design

Processes and Technology

Capacity and Facilities Design

Human Resources

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Resource Planning

Lean Systems

Scheduling

Filters