Question 1

Aggregate planning should consider information from

Accepted Answer

A)  only the enterprise as its breadth of scope. 
B)  downstream partners to produce forecasts. 
C)  upstream partners to determine constraints. 
D)  all of the above 
A)  only the enterprise as its breadth of scope. 
B)  downstream partners to produce forecasts. 
C)  upstream partners to determine constraints. 
D)  all of the above D

Question 2

Scenario 8.2 - Willow
A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6.
 $\begin{array}{|l|c|c|c|c|c|}
\hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \
\hline \text { Forecast } & 400 & 800 & 1200 & 700 & 300 \
\hline \text { Beginning Inventory } & 100 & & & & \
\hline \text { Regular Time } & & & & & \
\hline \text { Qvertime } & & & & & \
\hline \text { Subcontracting } & & & & & \
\hline \text { Ending Inventory } & & & & & \
\hline
\end{array}$ 
The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts.
-How many units are produced using overtime in the optimal aggregate plan developed to address Scenario 8.2?

Accepted Answer

A)  360 
B)  200 
C)  400 
D)  280 
A)  360 
B)  200 
C)  400 
D)  280 D

Question 3

Companies should work with downstream partners to produce forecasts and with upstream partners to determine constraints when doing aggregate planning.

Accepted Answer

A) True 
 B)False  True

Question 4

To create an aggregate plan, a company must specify the planning horizon for the plan and the duration of each period within the planning horizon.

Accepted Answer

A) True 
 B)False

Question 5

A poor aggregate plan can result in

Accepted Answer

A)  appropriate inventory levels. 
B)  efficient use of capacity. 
C)  better sales and lost profits. 
D)  lost sales and lost profits. 
A)  appropriate inventory levels. 
B)  efficient use of capacity. 
C)  better sales and lost profits. 
D)  lost sales and lost profits.

Question 6

Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.

Accepted Answer

A) True 
 B)False

Question 7

Traditionally, much of aggregate planning is focused within an enterprise and may not always be seen as a part of supply chain management.

Accepted Answer

A) True 
 B)False

Question 8

Aggregate planning is concerned with determining

Accepted Answer

A)  the production level, sales level, and capacity for each period. 
B)  the demand level, inventory level, and capacity for each period. 
C)  the production level, inventory level, and capacity for each period. 
D)  the production level, staffing level, and capacity for each period. 
A)  the production level, sales level, and capacity for each period. 
B)  the demand level, inventory level, and capacity for each period. 
C)  the production level, inventory level, and capacity for each period. 
D)  the production level, staffing level, and capacity for each period.

Question 9

The fundamental trade-offs available to an aggregate planner are between

Accepted Answer

A)  capability, inventory, and backlog costs. 
B)  capability, inventory, and sales costs. 
C)  capacity, inventory, and backlog costs. 
D)  capacity, inventory, and sales costs. 
A)  capability, inventory, and backlog costs. 
B)  capability, inventory, and sales costs. 
C)  capacity, inventory, and backlog costs. 
D)  capacity, inventory, and sales costs.

Question 10

As capacity utilization increases,

Accepted Answer

A)  it becomes less important to perform aggregate planning. 
B)  it becomes more important to perform aggregate planning. 
C)  it does not affect the importance of performing aggregate planning. 
D)  it lessens the importance of aggregate planning. 
A)  it becomes less important to perform aggregate planning. 
B)  it becomes more important to perform aggregate planning. 
C)  it does not affect the importance of performing aggregate planning. 
D)  it lessens the importance of aggregate planning.

Question 11

The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is

Accepted Answer

A)  production rate. 
B)  overtime. 
C)  backlog. 
D)  inventory on hand. 
A)  production rate. 
B)  overtime. 
C)  backlog. 
D)  inventory on hand.

Question 12

A highly effective tool for a company to use when it tries to maximize profits while being subjected to a series of constraints is

Accepted Answer

A)  aggregate programming. 
B)  distribution programming. 
C)  production programming. 
D)  linear programming. 
A)  aggregate programming. 
B)  distribution programming. 
C)  production programming. 
D)  linear programming.

Question 13

The aggregate plan needs to

Accepted Answer

A)  be a final product because changes are disruptive to the supply chain. 
B)  be considered fixed because forecasts are usually accurate. 
C)  have some flexibility built into it because forecasts are always wrong. 
D)  have some flexibility built into it because forecasts are usually right. 
A)  be a final product because changes are disruptive to the supply chain. 
B)  be considered fixed because forecasts are usually accurate. 
C)  have some flexibility built into it because forecasts are always wrong. 
D)  have some flexibility built into it because forecasts are usually right.

Question 14

Most strategies that an aggregate planner actually uses are in combination, and are referred to as hybrid strategies.

Accepted Answer

A) True 
 B)False

Question 15

Explain the basic strategies that an aggregate planner has available to balance the various costs and meet demand.

Accepted Answer

There are essentially three distinct agg

Question 16

Demand is forecast for the next five months as 200, 300, 500, 300, 200. The production planner decides to adopt a chase strategy, so over the next five months they should produce

Accepted Answer

A)  200, 300, 500, 300, 200. 
B)  500, 400, 300, 200, 100. 
C)  100, 200, 300, 400, 500. 
D)  300, 300, 300, 300, 300. 
A)  200, 300, 500, 300, 200. 
B)  500, 400, 300, 200, 100. 
C)  100, 200, 300, 400, 500. 
D)  300, 300, 300, 300, 300.

Question 17

Scenario 8.2 - Willow
A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6.
 $\begin{array}{|l|c|c|c|c|c|}
\hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \
\hline \text { Forecast } & 400 & 800 & 1200 & 700 & 300 \
\hline \text { Beginning Inventory } & 100 & & & & \
\hline \text { Regular Time } & & & & & \
\hline \text { Qvertime } & & & & & \
\hline \text { Subcontracting } & & & & & \
\hline \text { Ending Inventory } & & & & & \
\hline
\end{array}$ 
The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts.
-How many months does the regular time output exceed plant capacity in the optimal solution to Scenario 8.2?

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
A)  0 
B)  1 
C)  2 
D)  3

Question 18

Much of aggregate planning has traditionally been focused

Accepted Answer

A)  on short-term production scheduling. 
B)  on customer relationship management. 
C)  within an enterprise. 
D)  beyond enterprise boundaries. 
A)  on short-term production scheduling. 
B)  on customer relationship management. 
C)  within an enterprise. 
D)  beyond enterprise boundaries.

Question 19

The operational parameter concerned with the number of units completed per unit time (such as per week or per month) is

Accepted Answer

A)  production rate. 
B)  workforce. 
C)  overtime. 
D)  backlog. 
A)  production rate. 
B)  workforce. 
C)  overtime. 
D)  backlog.

Question 20

The planning horizon is

Accepted Answer

A)  the time period over which the aggregate plan is to produce a solution. 
B)  the duration of each time period in the aggregate plan. 
C)  the length of time required to produce the aggregate plan. 
D)  the solution to the aggregate plan. 
A)  the time period over which the aggregate plan is to produce a solution. 
B)  the duration of each time period in the aggregate plan. 
C)  the length of time required to produce the aggregate plan. 
D)  the solution to the aggregate plan.

Aggregate planning should consider information from

Companies should work with downstream partners to produce forecasts and with upstream partners to determine constraints when doing aggregate planning.

To create an aggregate plan, a company must specify the planning horizon for the plan and the duration of each period within the planning horizon.

A poor aggregate plan can result in

Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.

Traditionally, much of aggregate planning is focused within an enterprise and may not always be seen as a part of supply chain management.

Aggregate planning is concerned with determining

The fundamental trade-offs available to an aggregate planner are between

As capacity utilization increases,

The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is

A highly effective tool for a company to use when it tries to maximize profits while being subjected to a series of constraints is

The aggregate plan needs to

Most strategies that an aggregate planner actually uses are in combination, and are referred to as hybrid strategies.

Explain the basic strategies that an aggregate planner has available to balance the various costs and meet demand.

Demand is forecast for the next five months as 200, 300, 500, 300, 200. The production planner decides to adopt a chase strategy, so over the next five months they should produce

Much of aggregate planning has traditionally been focused

The operational parameter concerned with the number of units completed per unit time (such as per week or per month) is

The planning horizon is

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to e-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 8: Aggregate Planning in a Supply Chain

Aggregate planning should consider information from

Companies should work with downstream partners to produce forecasts and with upstream partners to determine constraints when doing aggregate planning.

To create an aggregate plan, a company must specify the planning horizon for the plan and the duration of each period within the planning horizon.

A poor aggregate plan can result in

Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.

Traditionally, much of aggregate planning is focused within an enterprise and may not always be seen as a part of supply chain management.

Aggregate planning is concerned with determining

The fundamental trade-offs available to an aggregate planner are between

As capacity utilization increases,

The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is

A highly effective tool for a company to use when it tries to maximize profits while being subjected to a series of constraints is

The aggregate plan needs to

Most strategies that an aggregate planner actually uses are in combination, and are referred to as hybrid strategies.

Explain the basic strategies that an aggregate planner has available to balance the various costs and meet demand.

Demand is forecast for the next five months as 200, 300, 500, 300, 200. The production planner decides to adopt a chase strategy, so over the next five months they should produce

Much of aggregate planning has traditionally been focused

The operational parameter concerned with the number of units completed per unit time (such as per week or per month) is

The planning horizon is

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to e-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters