Question 1

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 2

Which of the following aggregate planning strategies is a "capacity option"?

Accepted Answer

A)  influencing demand by changing price 
B)  counterseasonal product mixing 
C)  influencing demand by extending lead times 
D)  changing inventory levels 
E)  influencing demand by back ordering 
A)  influencing demand by changing price 
B)  counterseasonal product mixing 
C)  influencing demand by extending lead times 
D)  changing inventory levels 
E)  influencing demand by back ordering

Question 3

In level scheduling, what is kept uniform from month to month?

Accepted Answer

A)  product mix 
B)  inventory levels 
C)  production/workforce levels 
D)  demand levels 
E)  sub-contracting levels 
A)  product mix 
B)  inventory levels 
C)  production/workforce levels 
D)  demand levels 
E)  sub-contracting levels

Question 4

Aggregate planning in manufacturing ties organizational strategic goals to a production plan.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about aggregate planning is true?

Accepted Answer

A)  The development of mathematical models has allowed aggregate planners to discontinue use of trial-and-error methods. 
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 pure level scheduling. 
D)  Disaggregation turns the master production schedule into an intermediate term master plan. 
E)  All of the above are true. 
A)  The development of mathematical models has allowed aggregate planners to discontinue use of trial-and-error methods. 
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 pure level scheduling. 
D)  Disaggregation turns the master production schedule into an intermediate term master plan. 
E)  All of the above are true.

Question 6

Plans for new product development generally fall within the scope of aggregate planning.

Accepted Answer

A) True 
 B)False

Question 7

__________ work with a few variables at a time and are easy to understand and use.

Accepted Answer

The answer of __________ work with a few variables at...

Question 8

The typical time horizon for aggregate planning is

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 9

Which of the following aggregate planning models is based primarily upon a manager's past experience?

Accepted Answer

A)  the linear decision rule 
B)  simulation 
C)  the management coefficients model 
D)  the transportation method 
E)  graphical methods 
A)  the linear decision rule 
B)  simulation 
C)  the management coefficients model 
D)  the transportation method 
E)  graphical methods

Question 10

A large consulting firm is deciding on if its workforce should be expanded, maintained, or decreased. Suppose that demand is given in week long projects, and that a consultant can work on 3 projects each month (1 week off for personal leave and/or other duties such as conferences, etc). Currently there are 25 consultants. Ten consultants are trained for LEAN and 15 for Six Sigma, with 5 of those consultants being overlaps (the consultant is trained for BOTH LEAN and Six Sigma). Assume that all consultants can do the general work. Complete the table (the forecast period is an upcoming month) and prepare a recommendation.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline \text { Category } & \begin{array} { c } 
\text { Best } \
\text { Forecast } \
\text { (\# } \
\text { projects) }
\end{array} & \begin{array} { c } 
\text { Likely } \
\text { Forecast } \
\text { (\# } \
\text { projects) }
\end{array} & \begin{array} { c } 
\text { Worst } \
\text { Forecast } \
\text { (\# } \
\text { projects) }
\end{array} & \begin{array} { c } 
\text { Maxand in } \
\text { \# of } \
\text { people }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { Qualified } \
\text { People }
\end{array} \
\hline \text { LEAN } & 42 & 24 & 12 & & \
\hline \text { Six Sigma } & 45 & 36 & 30 & & \
\hline \text { General } & 75 & 60 & 57 & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | c | c | c | c |

Question 11

What four things are needed to develop an aggregate plan?

Accepted Answer

To develop an aggregate plan, you need a

Question 12

The only objective of aggregate planning is to minimize the cost of matching capacity to demand over the planning period.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

What is the primary management challenge when implementing yield management?

Accepted Answer

Identifying differen

Question 15

Osprey Machine Works has the following demand requirements and other data for the upcoming four quarters.
 $\begin{array}{|l|l|l|l|}
\hline\text { Quarter}& \text { Demand }& \text { Previous quarter's output } & 2500 \text { units } \
\hline 1&2300&\text { Beginning inventory } &20 0 \text { units } \
\hline2&2400&\text { Stockout cost } & \$ 50 \text { per unit } \
\hline3&2600 &\text { Iniventory holding cost } & \$ 10 \text { per unit at end of quarter } \
\hline4&2100 &\text { Hiring workers } & \$4 \text { per unit } \
\hline &&\text { Laying off workers } & \$ 8 \text { per unit } \
\hline&& \text {Unit cost} & \$ 30 \text { per unit } \
\hline&& \text { Overtime } & \$ 10 \text { per unit }\
\hline
\end{array}$

What is the total cost of pursuing a level aggregate plan over the coming year?

Accepted Answer

Requirements total 9400 units,

Question 16

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 17

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

Accepted Answer

Using part

Question 18

A train company is considering applying yield management principles to its ticket sales. Suppose that there is no variable cost in the operation, only a fixed cost to run each train. The company decides that a student ticket will sell for half the cost of a business ticket. If demand for the business tickets is given by 50-3x where x is the sales price of a business ticket and demand for student tickets is given by 70-y^2 where y is the price of a student ticket how much should the company charge for tickets to maximize revenue?

Accepted Answer

The crucial step is to relate x and y, u

Question 19

What is the typical planning horizon for aggregate planning?

Accepted Answer

The typical planning

Question 20

A manufacturing plant has created the following forecast and would like to apply a graphical aggregate planning method. Complete the table and calculate the difference between Jan.'s forecast demand per working day vs a level production model for the entire period?
 $\begin{array}{|l|l|l|l|}
\hline&&&\text { Demand per Day (to }\
&\text { Expected }&\text {Production}&\text {the nearest whole }\
\text { Month}&\text { Demand }&\text {Days} &\text {unit) }\
\hline \text { Tan. } & 1800 & 22 \
\hline \text { Feb. } & 1400 & 18 \
\hline \text { Mar: } & 1600 & 21\
\hline
\end{array}$

Accepted Answer

Total expected demand/ Total # working d

Exam 16: Aggregate Planning

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

Which of the following aggregate planning strategies is a "capacity option"?

In level scheduling, what is kept uniform from month to month?

Aggregate planning in manufacturing ties organizational strategic goals to a production plan.

Which of the following statements about aggregate planning is true?

Plans for new product development generally fall within the scope of aggregate planning.

__________ work with a few variables at a time and are easy to understand and use.

The typical time horizon for aggregate planning is

Which of the following aggregate planning models is based primarily upon a manager's past experience?

What four things are needed to develop an aggregate plan?

The only objective of aggregate planning is to minimize the cost of matching capacity to demand over the planning period.

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

What is the primary management challenge when implementing yield management?

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

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

What is the typical planning horizon for aggregate planning?

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

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