Question 1

In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

Accepted Answer

A) True 
 B)False

Question 2

Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity.

Accepted Answer

A) True 
 B)False

Question 3

Departmental budgeting is an example of aggregate planning.

Accepted Answer

A) True 
 B)False

Question 4

After the first period of the planning horizon, available-to-promise is computed only for those periods in which there is an MPS quantity.

Accepted Answer

A) True 
 B)False

Question 5

Uncommitted inventory is called:

Accepted Answer

A)  available-to-promise inventory. 
B)  free inventory. 
C)  safety stock. 
D)  lead time inventory. 
E)  obsolete inventory. 
A)  available-to-promise inventory. 
B)  free inventory. 
C)  safety stock. 
D)  lead time inventory. 
E)  obsolete inventory.

Question 6

Aggregate planning requires which of the following information?
(I) a forecast of expected demand
(II) current levels of inventory
(III) policies regarding employment levels

Accepted Answer

A)  II only 
B)  I and II only 
C)  I and III only 
D)  I, II, and III 
E)  II and III only 
A)  II only 
B)  I and II only 
C)  I and III only 
D)  I, II, and III 
E)  II and III only

Question 7

Linear programming models yield the optimal solution.

Accepted Answer

A) True 
 B)False

Question 8

Aggregate planning for services is more difficult than aggregate planning for manufacturing because __________ and __________ are more difficult to predict.

Accepted Answer

A)  capacity availability; customer tastes 
B)  holding costs; overtime costs 
C)  demand; capacity availability 
D)  capacity change costs; holding costs 
E)  hiring costs; holding costs 
A)  capacity availability; customer tastes 
B)  holding costs; overtime costs 
C)  demand; capacity availability 
D)  capacity change costs; holding costs 
E)  hiring costs; holding costs

Question 9

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 is the expected inventory at the end of April 2008?

Accepted Answer

A)  350 
B)  250 
C)  150 
D)  50 
E)  80 
A)  350 
B)  250 
C)  150 
D)  50 
E)  80

Question 10

Aggregate planning in the case of a high-volume product output business such as a restaurant is directed toward:

Accepted Answer

A)  smoothing the service ratE. 
B)  reducing the size of the workforce. 
C)  making the kitchen and waitstaff more flexible. 
D)  coming up with a fixed staffing level. 
E)  making weekly work schedules more stable. 
A)  smoothing the service ratE. 
B)  reducing the size of the workforce. 
C)  making the kitchen and waitstaff more flexible. 
D)  coming up with a fixed staffing level. 
E)  making weekly work schedules more stable.

Question 11

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following steps is necessary to ensure that a master schedule is valid?

Accepted Answer

A)  worker scheduling 
B)  order promising 
C)  inventory counting 
D)  order booking 
E)  rough-cut capacity planning 
A)  worker scheduling 
B)  order promising 
C)  inventory counting 
D)  order booking 
E)  rough-cut capacity planning

Question 13

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is:

Accepted Answer

A)  beginning inventory. 
B)  safety stock inventory. 
C)  available-to-promise inventory. 
D)  high-margin inventory. 
E)  master production schedule arrivals. 
A)  beginning inventory. 
B)  safety stock inventory. 
C)  available-to-promise inventory. 
D)  high-margin inventory. 
E)  master production schedule arrivals.

Question 14

Which one of the following would not be considered a decision option for purposes of aggregate planning?

Accepted Answer

A)  inventory levels 
B)  manpower levels 
C)  pricing 
D)  production costs 
E)  promotion 
A)  inventory levels 
B)  manpower levels 
C)  pricing 
D)  production costs 
E)  promotion

In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity.

Departmental budgeting is an example of aggregate planning.

After the first period of the planning horizon, available-to-promise is computed only for those periods in which there is an MPS quantity.

Uncommitted inventory is called:

Aggregate planning requires which of the following information? (I) a forecast of expected demand (II) current levels of inventory (III) policies regarding employment levels

Linear programming models yield the optimal solution.

Aggregate planning for services is more difficult than aggregate planning for manufacturing because and are more difficult to predict.

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 is the expected inventory at the end of April 2008?

Aggregate planning in the case of a high-volume product output business such as a restaurant is directed toward:

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

Which of the following steps is necessary to ensure that a master schedule is valid?

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is:

Which one of the following would not be considered a decision option for purposes of aggregate planning?

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

Filters

Exam 16: Aggregate Planning and Master Scheduling

In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity.

Departmental budgeting is an example of aggregate planning.

After the first period of the planning horizon, available-to-promise is computed only for those periods in which there is an MPS quantity.

Uncommitted inventory is called:

Aggregate planning requires which of the following information? (I) a forecast of expected demand (II) current levels of inventory (III) policies regarding employment levels

Linear programming models yield the optimal solution.

Aggregate planning for services is more difficult than aggregate planning for manufacturing because __________ and __________ are more difficult to predict.

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 is the expected inventory at the end of April 2008?

Aggregate planning in the case of a high-volume product output business such as a restaurant is directed toward:

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

Which of the following steps is necessary to ensure that a master schedule is valid?

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is:

Which one of the following would not be considered a decision option for purposes of aggregate planning?

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

Filters

Aggregate planning for services is more difficult than aggregate planning for manufacturing because and are more difficult to predict.