Question 1

__________ 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 2

Which of the following statements about aggregate planning is true?

Accepted Answer

A)  Advertising/promotion is a way of manipulating product or service supply. 
B)  Work station loading and job assignments are examples of aggregate planning. 
C)  Overtime/idle time is a way of manipulating product or service demand. 
D)  Aggregate planning uses the adjustable part of capacity to meet production requirements. 
E)  All of the above are true. 
A)  Advertising/promotion is a way of manipulating product or service supply. 
B)  Work station loading and job assignments are examples of aggregate planning. 
C)  Overtime/idle time is a way of manipulating product or service demand. 
D)  Aggregate planning uses the adjustable part of capacity to meet production requirements. 
E)  All of the above are true.

Question 3

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; back orders 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.
 $$\begin{array} { | l | l | l | l | l | } 
\hline & \text { March } & \text { April } & \text { May } & \text { Tune } \
\hline \text { Demand } & 400 & 600 & 600 & 700 \
\hline \text { Regular capacity } & 400 & 400 & 400 & 400 \
\hline \text { Overtime capacity } & 100 & 100 & 100 & 100 \
\hline \text { Subcontract cap. } & 150 & 50 & 50 & 50 \
\hline
\end{array}$$ 
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 back ordering?
 When; why?

Accepted Answer

(a) 400; (b) 250; (c) 0; (d) 550; (e) To

Question 4

"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)  capacity allocation to different classes of customers in order to maximize profits 
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)  capacity allocation to different classes of customers in order to maximize profits 
E)  management's selection of a product mix yielding maximum profits

Question 5

Advertising and promotion are methods of manipulating product or service supply in aggregate planning.

Accepted Answer

A) True 
 B)False

Question 6

__________ is the process of breaking the aggregate plan into greater detail.

Accepted Answer

The answer of __________ is the process of breaking the...

Question 7

A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units and in period 2 demand is 150 units. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 50 hours of overtime are available for $15/hour each period. If holding costs are $2 per unit each period, how many hours of regular employment should be used in period 1 (assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour)?

Accepted Answer

In period 2 all regular work will be use

Question 8

Which of the following 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 9

Osprey Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
 $\begin{array}{|l|l|l|l|}
\hline\text { Quarter}&\text {  Demand }& \text { Previous quarter's output } &1300 \text { units }\
\hline1&1400& \text { Beginning inventory } & 0\text { units } \
\hline2&1200& \text { Stockout cost } & \$ 50 \text { per unit } \
\hline&&&\$ 10 \text { per unit at end of } \
3&1600& \text { Inventory holding cost } &\text { quarter }\

\hline 4&1500&\text { Hiring workers } & \$ 4 0\text { per unit } \
\hline &&\text { Laying off workers } & \$ 80 \text { per unit } \
\hline &&\text { Subcontracting cost } &\$ 60 \text { per unit }\
\hline&& \text { Unit cost } & \$ 30 \text { per unit } \
\hline &&\text { Overtime } & \$ 15 \text { extra per unit }\
\hline
\end{array}$
 
Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy, or Plan C-1350 level with the remainder by subcontracting?

Accepted Answer

Plan A will cost $215,000, Pla

Question 10

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

Accepted Answer

Successful techniques include:
1. accura

Question 11

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

Accepted Answer

This is a critical-thinking item for stu

Question 12

Aggregate planning is capacity planning for

Accepted Answer

A)  the long range 
B)  the intermediate range 
C)  the short range 
D)  typically one to three months 
E)  typically three or more years 
A)  the long range 
B)  the intermediate range 
C)  the short range 
D)  typically one to three months 
E)  typically three or more years

Question 13

What directly results from disaggregation of an aggregate plan?

Accepted Answer

A)  a master production schedule 
B)  priority scheduling 
C)  a transportation matrix 
D)  a capacity-demand matrix 
E)  detailed work schedules 
A)  a master production schedule 
B)  priority scheduling 
C)  a transportation matrix 
D)  a capacity-demand matrix 
E)  detailed work schedules

Question 14

A hotel chain is considering using yield management to increase profits. Its plan is to sell unsold rooms at a discounted rate very close to the night of stay. For example, an unsold Friday night room would be discounted early in the week. It estimates that the percentage of sold rooms (total) would be equal to 50+X, where X is the % discounted off of regular price. Meanwhile the % of rooms sold for full price compared to the discount would be 100-2X (some people would wait to book gambling a discount would happen). Find the ideal discount %.

Accepted Answer

Revenue is equal to demand * (% sold at

Question 15

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 16

Planning tasks associated with loading, sequencing, expediting, and dispatching typically fall under

Accepted Answer

A)  short-range plans 
B)  intermediate-range plans 
C)  long-range plans 
D)  mission-related planning 
E)  strategic planning 
A)  short-range plans 
B)  intermediate-range plans 
C)  long-range plans 
D)  mission-related planning 
E)  strategic planning

Question 17

Controlling the cost of labor in services involves quick response to consumer demand, on-call labor for unexpected demand, flexibility of labor for reallocation, and flexibility of hours or rate of output of individual workers.

Accepted Answer

A) True 
 B)False

Question 18

Disaggregation is the process of breaking the aggregate plan into greater detail; one example of this detail is the Master Production Schedule.

Accepted Answer

A) True 
 B)False

Question 19

Identify some firms that provide yield management software.

Accepted Answer

NCR's Teradata, SPS,

Question 20

Which of the following attempts to manipulate product or service demand?

Accepted Answer

A)  inventories 
B)  part-time workers 
C)  subcontracting 
D)  overtime/idle time 
E)  price cuts 
A)  inventories 
B)  part-time workers 
C)  subcontracting 
D)  overtime/idle time 
E)  price cuts

Exam 16: Aggregate Planning

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

Which of the following statements about aggregate planning is true?

"Yield management" is best described as

Advertising and promotion are methods of manipulating product or service supply in aggregate planning.

__________ is the process of breaking the aggregate plan into greater detail.

Which of the following is not associated with manipulation of product or service demand?

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

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

Aggregate planning is capacity planning for

What directly results from disaggregation of an aggregate plan?

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.

Planning tasks associated with loading, sequencing, expediting, and dispatching typically fall under

Controlling the cost of labor in services involves quick response to consumer demand, on-call labor for unexpected demand, flexibility of labor for reallocation, and flexibility of hours or rate of output of individual workers.

Disaggregation is the process of breaking the aggregate plan into greater detail; one example of this detail is the Master Production Schedule.

Identify some firms that provide yield management software.

Which of the following attempts to manipulate product or service demand?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Outsourcing as a Supply-Chain Strategy

Inventory Management

Material Requirements Planning MRP and ERP

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters