Question 1

Use the transportation method to develop an optimum aggregate production plan,given the following data:

Accepted Answer

The answer of Use the transportation method to develop an...

Question 2

Aggregate operations planning is used to establish general levels of employment,production levels and changes in inventory levels over an intermediate range of time.

Accepted Answer

A) True 
 B)False

Question 3

Prepare a master production schedule based on the following information:
Beginning inventory:
 145
Schedule production whenever projected-on-hand drops below 20.
Production lot size is 250 units.

Accepted Answer

The answer of Prepare a master production schedule based on...

Question 4

In doing "aggregate operations planning" for a firm producing paint,the aggregate operations planners would most likely base their planning on:

Accepted Answer

A)  gallons of paint as an equivalent unit of production, without concern for the different colours to be produced. 
B)  gallons of paint as an equivalent unit of production,, but be concerned with the different colours to be produced. 
C)  all the different sizes to be produced such as gallons, quarts, and pints. 
D)  all the different sizes and all the different colours to be produced. 
E)  None of the choices. 
A)  gallons of paint as an equivalent unit of production, without concern for the different colours to be produced. 
B)  gallons of paint as an equivalent unit of production,, but be concerned with the different colours to be produced. 
C)  all the different sizes to be produced such as gallons, quarts, and pints. 
D)  all the different sizes and all the different colours to be produced. 
E)  None of the choices.

Question 5

Among the basic demand options in aggregate operations planning are promotion and the use of overtime.

Accepted Answer

A) True 
 B)False

Question 6

Given the projected demands for the next six months,prepare an aggregate production plan that uses inventory,regular time and overtime,and backorders.Regular time is 150 units per month.Overtime is a maximum of 20 units per month.Overtime cost is $30 per unit,backorder cost is $20 per unit,inventory holding cost is $5 per unit,regular time cost of $20 per unit,and beginning inventory is zero.

Accepted Answer

There must be 20 hours of over

Question 7

Aggregate operations planning is not an effective technique for organizations that experience seasonal fluctuations in demand.

Accepted Answer

A) True 
 B)False

Question 8

Using the given information,determine the following.
a.What is total forecasted demand?
b.What is total regular time capacity?
c.How should overtime capacity be utilized?
d.What are total regular time costs?
e.What are total overtime costs?
f.What are total carrying costs?
g.What are total backorder costs?
h.What are total costs for each period?
i.What are total costs for the six periods?
j.If hiring cost is $500 and firing cost if $400,would it be more economical on a per unit basis to use overtime or to hire and fire a temporary person (who can produce a maximum of 40 units per period)?
 What would be the difference in total costs for the six periods?

Accepted Answer

a.1,800 units
b.1,680 units
c.40 units e

Question 9

In aggregate operations planning,both pricing and promotion are options to shift demand to align more closely with capacity.

Accepted Answer

A) True 
 B)False

Question 10

Master production scheduling has three inputs for each product:
 the beginning inventory,quantities already committed to customers,and back orders.

Accepted Answer

A) True 
 B)False

Question 11

Which term is most closely associated with the term disaggregation?

Accepted Answer

A)  Subcontracting 
B)  Master schedule 
C)  Backordering 
D)  Varying inventory levels 
E)  Firing and laying off 
A)  Subcontracting 
B)  Master schedule 
C)  Backordering 
D)  Varying inventory levels 
E)  Firing and laying off

Question 12

Aggregate operations planning is capacity planning for:

Accepted Answer

A)  a long-term horizon of several years. 
B)  an intermediate-term horizon, typically 12 months. 
C)  a short-term horizon of four to six weeks. 
D)  day-to-day production for one or two weeks. 
E)  machine loading in a plant on hour-by-hour basis. 
A)  a long-term horizon of several years. 
B)  an intermediate-term horizon, typically 12 months. 
C)  a short-term horizon of four to six weeks. 
D)  day-to-day production for one or two weeks. 
E)  machine loading in a plant on hour-by-hour basis.

Question 13

The goal of aggregate operations planning is to achieve a production plan that will satisfy total forecast demand at minimum cost.

Accepted Answer

A) True 
 B)False

Question 14

Aggregate operations planners balance actions that influence:

Accepted Answer

A)  demand and inventories. 
B)  demand and costs. 
C)  capacity and inventories. 
D)  capacity and costs. 
E)  capacity and demand. 
A)  demand and inventories. 
B)  demand and costs. 
C)  capacity and inventories. 
D)  capacity and costs. 
E)  capacity and demand.

Question 15

Master production scheduling (MPS)involves long term capacity planning that typically covers a time horizon of one to three years.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not true about using overtime for changing capacity?

Accepted Answer

A)  It can be implemented quickly. 
B)  It avoids the challenges of hiring more workers. 
C)  It typically results in higher productivity. 
D)  It typically increases payroll costs. 
E)  All of the choices 
A)  It can be implemented quickly. 
B)  It avoids the challenges of hiring more workers. 
C)  It typically results in higher productivity. 
D)  It typically increases payroll costs. 
E)  All of the choices

Question 17

Inventory information for firm ABC: What is the expected inventory at the end of April,2014?

Accepted Answer

A)  350 
B)  250 
C)  150 
D)  50 
E)  None of the choices are correct. 
A)  350 
B)  250 
C)  150 
D)  50 
E)  None of the choices are correct.

Question 18

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 additional information 
A)  14 
B)  32 
C)  12 
D)  20 
E)  Impossible to say without additional information

Question 19

The two primary factors in choosing an aggregate operations planning strategy are:

Accepted Answer

A)  company policy and the master schedule. 
B)  overall costs and the master schedule. 
C)  company policy and overall costs. 
D)  company policy and the demand forecast. 
E)  overall costs and the demand forecast. 
A)  company policy and the master schedule. 
B)  overall costs and the master schedule. 
C)  company policy and overall costs. 
D)  company policy and the demand forecast. 
E)  overall costs and the demand forecast.

Question 20

Among the basic capacity options in aggregate operations planning are hiring workers and the use of overtime.

Accepted Answer

A) True 
 B)False

Exam 13: Aggregate Operations Planning

Use the transportation method to develop an optimum aggregate production plan,given the following data:

Aggregate operations planning is used to establish general levels of employment,production levels and changes in inventory levels over an intermediate range of time.

Prepare a master production schedule based on the following information: Beginning inventory: 145 Schedule production whenever projected-on-hand drops below 20. Production lot size is 250 units.

In doing "aggregate operations planning" for a firm producing paint,the aggregate operations planners would most likely base their planning on:

Among the basic demand options in aggregate operations planning are promotion and the use of overtime.

Aggregate operations planning is not an effective technique for organizations that experience seasonal fluctuations in demand.

In aggregate operations planning,both pricing and promotion are options to shift demand to align more closely with capacity.

Master production scheduling has three inputs for each product: the beginning inventory,quantities already committed to customers,and back orders.

Which term is most closely associated with the term disaggregation?

Aggregate operations planning is capacity planning for:

The goal of aggregate operations planning is to achieve a production plan that will satisfy total forecast demand at minimum cost.

Aggregate operations planners balance actions that influence:

Master production scheduling (MPS)involves long term capacity planning that typically covers a time horizon of one to three years.

Which of the following is not true about using overtime for changing capacity?

Inventory information for firm ABC: What is the expected inventory at the end of April,2014?

What is the projected on hand inventory at the end of period 2?

The two primary factors in choosing an aggregate operations planning strategy are:

Among the basic capacity options in aggregate operations planning are hiring workers and the use of overtime.

Introduction to Operations Management

Competitiveness, Strategic Planning, and Productivity

Demand Forecasting

A: Product Design

B: Product Design

A: Strategic Capacity Planning

B: Strategic Capacity Planning

A: Process Design and Facility Layout

B: Process Design and Facility Layout

A: Design of Work Systems

B: Design of Work Systems

A: Location Planning and Analysis

B: Location Planning and Analysis

Management of Quality

A: Statistical Quality Control

B: Statistical Quality Control

Supply Chain Management

Inventory Management

Material Requirements Planning and Enterprise Resource Planning

A: Just-In-Time and Lean Production

B: Just-In-Time and Lean Production

Job and Staff Scheduling

Project Management

A: Waiting-Line Analysis

B: Waiting-Line Analysis

Filters