Question 1

The assignment of work to specific machines and people are examples of aggregate planning.

Accepted Answer

A) True 
 B)False

Question 2

Using variable pricing in response to demand variability to maximize revenue using perishable capacity is known as:

Accepted Answer

A)  yield management. 
B)  profit minimization. 
C)  capacity loading. 
D)  demand optimization. 
E)  perishability avoidance. 
A)  yield management. 
B)  profit minimization. 
C)  capacity loading. 
D)  demand optimization. 
E)  perishability avoidance.

Question 3

Master schedulers are employed primarily by service organizations.

Accepted Answer

A) True 
 B)False

Question 4

One option for altering the availability of capacity is:

Accepted Answer

A)  use of overtime or slack timE. 
B)  pricing. 
C)  promotion. 
D)  back orders. 
E)  rigidly fixing work schedules. 
A)  use of overtime or slack timE. 
B)  pricing. 
C)  promotion. 
D)  back orders. 
E)  rigidly fixing work schedules.

Question 5

Information for firm ABC: $$\begin{array} { l r } 
\text { Inventory at the end of April, 2008: } & 200 \text { units } \
\text { Expected demand during April, 2008: } & 50 \text { units } \
\text { Production expected during April, 2008: } & 100 \text { units }
\end{array}$$
What was the inventory at the end of March 2008?

Accepted Answer

A)  350 
B)  250 
C)  150 
D)  50 
E)  400 
A)  350 
B)  250 
C)  150 
D)  50 
E)  400

Question 6

One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is:

Accepted Answer

A)  inventory is cheaper to hold. 
B)  labor availability is more predictable. 
C)  inventory is less perishable. 
D)  labor is more flexiblE. 
E)  demand is less variable. 
A)  inventory is cheaper to hold. 
B)  labor availability is more predictable. 
C)  inventory is less perishable. 
D)  labor is more flexiblE. 
E)  demand is less variable.

Question 7

The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

Accepted Answer

A) True 
 B)False

Question 8

A company's disaggregation plan calls for the aggregate production to be broken down into 40 percent Product A, 40 percent Product B, and 20 percent Product C. The aggregate plan calls for total production that averages 1,100 units per quarter. Quarter 1 production will be 800 units, quarter 2 production will be 1,400 units, and quarter 3 production will be 1,200 units. How many units of Product A will be produced in quarter 4?

Accepted Answer

A)  320 units 
B)  400 units 
C)  440 units 
D)  480 units 
E)  560 units 
A)  320 units 
B)  400 units 
C)  440 units 
D)  480 units 
E)  560 units

Question 9

Which of the following is not a basic option for altering the availability of capacity in a service environment?

Accepted Answer

A)  overtime 
B)  hiring/layoff 
C)  part time 
D)  inventory 
E)  All of the choices are options. 
A)  overtime 
B)  hiring/layoff 
C)  part time 
D)  inventory 
E)  All of the choices are options.

Question 10

Aggregate planning is capacity planning that typically covers a time horizon of one to three months.

Accepted Answer

A) True 
 B)False

Question 11

Proactive and reactive aggregate planning strategies are best associated with:

Accepted Answer

A)  input and output. 
B)  make and buy. 
C)  quantitative and qualitative. 
D)  exact and approximate. 
E)  demand and capacity options. 
A)  input and output. 
B)  make and buy. 
C)  quantitative and qualitative. 
D)  exact and approximate. 
E)  demand and capacity options.

Question 12

The direct result of disaggregating the aggregate plan is the:

Accepted Answer

A)  marketing plan. 
B)  production plan. 
C)  rough-cut capacity plan. 
D)  master schedulE. 
E)  material requirements plan. 
A)  marketing plan. 
B)  production plan. 
C)  rough-cut capacity plan. 
D)  master schedulE. 
E)  material requirements plan.

Question 13

Aggregate planners are concerned with the quality and quantity of expected demand.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an input to aggregate planning?

Accepted Answer

A)  ending inventory 
B)  demand forecasts for each period 
C)  customer levels 
D)  setup costs 
E)  quantity discounts 
A)  ending inventory 
B)  demand forecasts for each period 
C)  customer levels 
D)  setup costs 
E)  quantity discounts

Question 15

In using the chase strategy, variations in demand could be met by:

Accepted Answer

A)  promotions. 
B)  varying output during regular time by changing employment levels. 
C)  varying inventory levels. 
D)  using some combination of inventories, overtime, part-time, subcontracting, and back orders. 
E)  price adjustments. 
A)  promotions. 
B)  varying output during regular time by changing employment levels. 
C)  varying inventory levels. 
D)  using some combination of inventories, overtime, part-time, subcontracting, and back orders. 
E)  price adjustments.

Question 16

Linear programming to produce an aggregate plan:

Accepted Answer

A)  will produce the best plan if accurate inputs are useD. 
B)  is the most widely used technique. 
C)  is easy to implement. 
D)  will produce a plan that may not be the best plan. 
E)  requires an Excel spreadsheet. 
A)  will produce the best plan if accurate inputs are useD. 
B)  is the most widely used technique. 
C)  is easy to implement. 
D)  will produce a plan that may not be the best plan. 
E)  requires an Excel spreadsheet.

Question 17

A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2.What quantity is available for commitment to new customers in either of the first two periods?

Accepted Answer

A)  21 
B)  1 
C)  20 
D)  4 
E)  impossible to say without more information 
A)  21 
B)  1 
C)  20 
D)  4 
E)  impossible to say without more information

Question 18

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

Accepted Answer

A) True 
 B)False

Question 19

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3.
What is the projected on-hand inventory at the end of period 2?

Accepted Answer

A)  14 
B)  32 
C)  12 
D)  20 
E)  impossible to say without more information 
A)  14 
B)  32 
C)  12 
D)  20 
E)  impossible to say without more information

Question 20

The main disadvantage(s) of informal techniques used for aggregate planning is(are):

Accepted Answer

A)  they are expensive to do. 
B)  they may not result in the best plan. 
C)  they take a long time to do. 
D)  they require the use of a computer. 
E)  the lack of formal education of the planners. 
A)  they are expensive to do. 
B)  they may not result in the best plan. 
C)  they take a long time to do. 
D)  they require the use of a computer. 
E)  the lack of formal education of the planners.

Exam 16: Aggregate Planning and Master Scheduling

The assignment of work to specific machines and people are examples of aggregate planning.

Using variable pricing in response to demand variability to maximize revenue using perishable capacity is known as:

Master schedulers are employed primarily by service organizations.

One option for altering the availability of capacity is:

Information for firm ABC: Inventory at the end of April, 2008: 200 units Expected demand during April, 2008: 50 units Production expected during April, 2008: 100 units What was the inventory at the end of March 2008?

One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is:

The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

Which of the following is not a basic option for altering the availability of capacity in a service environment?

Aggregate planning is capacity planning that typically covers a time horizon of one to three months.

Proactive and reactive aggregate planning strategies are best associated with:

The direct result of disaggregating the aggregate plan is the:

Aggregate planners are concerned with the quality and quantity of expected demand.

Which of the following is an input to aggregate planning?

In using the chase strategy, variations in demand could be met by:

Linear programming to produce an aggregate plan:

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3. What is the projected on-hand inventory at the end of period 2?

The main disadvantage(s) of informal techniques used for aggregate planning is(are):

Introduction to Operations Management

Competitiveness

Forecasting

Product and Service Design

RELIABILITY – Static

Strategic Capacity Planning for Products and Services

Decision Theory– Static

Process Selection and Facility Layout

Work Design and Measurement

learning curve– Static

Location Planning and Analysis

The Transportation Model– Static

Management of Quality

Quality Control

Acceptance Sampling– Static

MRP and ERP

Inventory Management

JIT and Lean Operations

Maintenance– Static

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

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