Question 1

Which of the following is an approach a company can use to create a buffer for forecast error using safety inventory?

Accepted Answer

A)  Overtime 
B)  Carry extra workforce permanently 
C)  Build and carry extra inventories 
D)  Subcontracting 
E)  Purchase capacity or product from an open or spot market 
A)  Overtime 
B)  Carry extra workforce permanently 
C)  Build and carry extra inventories 
D)  Subcontracting 
E)  Purchase capacity or product from an open or spot market

Question 2

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 3

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 
E)  B and C only 
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 
E)  B and C only

Question 4

A poor aggregate plan can result in improved sales and profits if the available inventory and capacity are unable to meet demand.

Accepted Answer

A) True 
 B)False

Question 5

Aggregate planning solves problems involving aggregate decisions rather than stock keeping unit (SKU)level decisions.

Accepted Answer

A) True 
 B)False

Question 6

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 7

The aggregate planning problem is concerned with determining the production level,inventory level,and capacity level (internal and outsourced)for each period that maximizes the firm's profit over the planning horizon.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a dimension along which IT can add value in the aggregate planning realm?

Accepted Answer

A)  The ability to handle large problems 
B)  The ability to handle complex problems 
C)  The ability to guarantee optimal solutions 
D)  The ability to interact with other core IT systems 
A)  The ability to handle large problems 
B)  The ability to handle complex problems 
C)  The ability to guarantee optimal solutions 
D)  The ability to interact with other core IT systems

Question 9

A manager should perform sensitivity analysis on the inputs into an aggregate plan to choose the best solution for the range of possibilities that could occur.

Accepted Answer

A) True 
 B)False

Question 10

Short-term production serves as a broad blueprint for operations and establishes the parameters within which aggregate planning decisions are made.

Accepted Answer

A) True 
 B)False

Question 11

The operational parameter concerned with demand not satisfied in the period in which it arises,but carried over to future periods is

Accepted Answer

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

Question 12

To improve the quality of these aggregate plans,forecast errors must be taken into account when formulating aggregate plans.

Accepted Answer

A) True 
 B)False

Question 13

As inputs into the aggregate plan change,managers do not need to make changes to the aggregate plan.

Accepted Answer

A) True 
 B)False

Question 14

Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.

Accepted Answer

A) True 
 B)False

Question 15

Linear programming finds the solution that creates the highest profit while satisfying the constraints that a company faces.

Accepted Answer

A) True 
 B)False

Question 16

An aggregate plan that increases one cost typically results in the increase of the other two.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The strategy where workforce (capacity)is kept stable but the number of hours worked is varied over time in an effort to synchronize production with demand is the

Accepted Answer

A)  adjustable strategy. 
B)  Chase strategy. 
C)  level strategy. 
D)  mixed strategy. 
E)  time flexible strategy. 
A)  adjustable strategy. 
B)  Chase strategy. 
C)  level strategy. 
D)  mixed strategy. 
E)  time flexible strategy.

Question 19

The strategy where the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off employees as the demand rate varies is the

Accepted Answer

A)  adjustable strategy. 
B)  Chase strategy. 
C)  level strategy. 
D)  mixed strategy. 
E)  time flexible strategy. 
A)  adjustable strategy. 
B)  Chase strategy. 
C)  level strategy. 
D)  mixed strategy. 
E)  time flexible strategy.

Question 20

The length of the planning horizon is usually between

Accepted Answer

A)  one and three months. 
B)  three and eighteen months. 
C)  one and three years. 
D)  three and five years. 
A)  one and three months. 
B)  three and eighteen months. 
C)  one and three years. 
D)  three and five years.

Which of the following is an approach a company can use to create a buffer for forecast error using safety inventory?

Aggregate planning is concerned with determining

Aggregate planning should consider information from

A poor aggregate plan can result in improved sales and profits if the available inventory and capacity are unable to meet demand.

Aggregate planning solves problems involving aggregate decisions rather than stock keeping unit (SKU)level decisions.

As capacity utilization increases,

The aggregate planning problem is concerned with determining the production level,inventory level,and capacity level (internal and outsourced)for each period that maximizes the firm's profit over the planning horizon.

Which of the following is not a dimension along which IT can add value in the aggregate planning realm?

A manager should perform sensitivity analysis on the inputs into an aggregate plan to choose the best solution for the range of possibilities that could occur.

Short-term production serves as a broad blueprint for operations and establishes the parameters within which aggregate planning decisions are made.

The operational parameter concerned with demand not satisfied in the period in which it arises,but carried over to future periods is

To improve the quality of these aggregate plans,forecast errors must be taken into account when formulating aggregate plans.

As inputs into the aggregate plan change,managers do not need to make changes to the aggregate plan.

Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.

Linear programming finds the solution that creates the highest profit while satisfying the constraints that a company faces.

An aggregate plan that increases one cost typically results in the increase of the other two.

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

The strategy where workforce (capacity)is kept stable but the number of hours worked is varied over time in an effort to synchronize production with demand is the

The strategy where the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off employees as the demand rate varies is the

The length of the planning horizon is usually between

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

Information Technology in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 8: Aggregate Planning in a Supply Chain

Which of the following is an approach a company can use to create a buffer for forecast error using safety inventory?

Aggregate planning is concerned with determining

Aggregate planning should consider information from

A poor aggregate plan can result in improved sales and profits if the available inventory and capacity are unable to meet demand.

Aggregate planning solves problems involving aggregate decisions rather than stock keeping unit (SKU)level decisions.

As capacity utilization increases,

The aggregate planning problem is concerned with determining the production level,inventory level,and capacity level (internal and outsourced)for each period that maximizes the firm's profit over the planning horizon.

Which of the following is not a dimension along which IT can add value in the aggregate planning realm?

A manager should perform sensitivity analysis on the inputs into an aggregate plan to choose the best solution for the range of possibilities that could occur.

Short-term production serves as a broad blueprint for operations and establishes the parameters within which aggregate planning decisions are made.

The operational parameter concerned with demand not satisfied in the period in which it arises,but carried over to future periods is

To improve the quality of these aggregate plans,forecast errors must be taken into account when formulating aggregate plans.

As inputs into the aggregate plan change,managers do not need to make changes to the aggregate plan.

Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.

Linear programming finds the solution that creates the highest profit while satisfying the constraints that a company faces.

An aggregate plan that increases one cost typically results in the increase of the other two.

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

The strategy where workforce (capacity)is kept stable but the number of hours worked is varied over time in an effort to synchronize production with demand is the

The strategy where the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off employees as the demand rate varies is the

The length of the planning horizon is usually between

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

Information Technology in a Supply Chain

Sustainability and the Supply Chain

Filters