Question 1

Master production schedules are often divided into which of the following zones?
I.Emergency
II.Production
III.Trading
IV.Planning

Accepted Answer

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

Question 2

Which of the following is an input of the master production schedule?
I.Beginning inventory
II.Demand forecasts for each period of the schedule
III.Orders already committed to customers

Accepted Answer

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

Question 3

Which of the following best describes aggregate operations planning?

Accepted Answer

A)  Linking long term capacity decisions with intermediate term production 
B)  Integrating several planning techniques to develop an MPS 
C)  An operations plan to support sales forecasting 
D)  Using predicted demand to plan the general levels of employment, output, and inventories required 
E)  An employee scheduling technique 
A)  Linking long term capacity decisions with intermediate term production 
B)  Integrating several planning techniques to develop an MPS 
C)  An operations plan to support sales forecasting 
D)  Using predicted demand to plan the general levels of employment, output, and inventories required 
E)  An employee scheduling technique

Question 4

One option for altering the period when manufacturing capacity is available is:

Accepted Answer

A)  pricing. 
B)  promotion. 
C)  use of slack time for training. 
D)  stockpiling inventories. 
E)  All of the choices are options. 
A)  pricing. 
B)  promotion. 
C)  use of slack time for training. 
D)  stockpiling inventories. 
E)  All of the choices are options.

Question 5

An example of a capacity option in aggregate operations planning for services is inventory.

Accepted Answer

A) True 
 B)False

Question 6

The main disadvantage(s)of trial-and-error techniques used for aggregate operations planning is (are):

Accepted Answer

A)  that they are expensive to do. 
B)  that they may not result in the best plan. 
C)  that they take a long time to do. 
D)  that they require the use of a computer. 
E)  All of the choices are disadvantages. 
A)  that they are expensive to do. 
B)  that they may not result in the best plan. 
C)  that they take a long time to do. 
D)  that they require the use of a computer. 
E)  All of the choices are disadvantages.

Question 7

Make-to-order companies use inventory whereas make-to-stock companies use backorders to shift demand.

Accepted Answer

A) True 
 B)False

Question 8

A major factor in choosing a strategy in aggregate operations planning is overall cost.

Accepted Answer

A) True 
 B)False

Question 9

Backorders can be thought of as negative inventory.

Accepted Answer

A) True 
 B)False

Question 10

Disaggregating an aggregate production plan leads to a master production schedule.

Accepted Answer

A) True 
 B)False

Question 11

An advantage of a "chase" strategy in aggregate operations planning is that it provides greater stability in operations based on a steady rate of output.

Accepted Answer

A) True 
 B)False

Question 12

What quantity is available for commitment to new customers prior to the receipt of the production quantity in week 3?

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 13

An example of a demand option in aggregate operations planning is the use of backorders.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not an input to the aggregate operations planning process?

Accepted Answer

A)  Production rates (capacities) 
B)  Demand forecasts 
C)  Initial inventory levels 
D)  Master production schedules 
E)  Limits on the use of overtime 
A)  Production rates (capacities) 
B)  Demand forecasts 
C)  Initial inventory levels 
D)  Master production schedules 
E)  Limits on the use of overtime

Question 15

A manager has prepared a forecast of expected aggregate demand for the next six months.Develop an aggregate production plan to meet this demand given this additional information:
 A level production rate of 100 units per month will be used.Backorders are allowed,and they are charged at the rate of $8 per unit per month.Inventory holding costs are $1 per unit per month.Determine the cost of this plan if regular time cost is $20 per unit and beginning inventory is zero.

Accepted Answer

The answer of A manager has prepared a forecast of...

Question 16

One option in aggregate planning that shifts the pattern of demand from one period to another is:

Accepted Answer

A)  backorders. 
B)  overtime. 
C)  part-time workers. 
D)  inventories. 
E)  subcontracting. 
A)  backorders. 
B)  overtime. 
C)  part-time workers. 
D)  inventories. 
E)  subcontracting.

Question 17

In practice,the more commonly used techniques for aggregate operations planning are:

Accepted Answer

A)  optimization techniques. 
B)  trial-and-error techniques. 
C)  marketing campaigns to influence demand. 
D)  simulation models. 
E)  some other technique not listed. 
A)  optimization techniques. 
B)  trial-and-error techniques. 
C)  marketing campaigns to influence demand. 
D)  simulation models. 
E)  some other technique not listed.

Question 18

One option for altering the capacity available in aggregate planning is:

Accepted Answer

A)  use of overtime or slack time. 
B)  pricing. 
C)  promotion. 
D)  backorders. 
E)  None of the choices. 
A)  use of overtime or slack time. 
B)  pricing. 
C)  promotion. 
D)  backorders. 
E)  None of the choices.

Question 19

Aggregate operations planners sometimes use optimization techniques such as linear programming for planning.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following are examples of intermediate operations planning decisions?
I.Deciding on the amount of inventory to hold
II.Deciding on which production equipment to purchase
III.Deciding on the location of a production facility

Accepted Answer

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

Exam 13: Aggregate Operations Planning

Master production schedules are often divided into which of the following zones? I.Emergency II.Production III.Trading IV.Planning

Which of the following is an input of the master production schedule? I.Beginning inventory II.Demand forecasts for each period of the schedule III.Orders already committed to customers

Which of the following best describes aggregate operations planning?

One option for altering the period when manufacturing capacity is available is:

An example of a capacity option in aggregate operations planning for services is inventory.

The main disadvantage(s)of trial-and-error techniques used for aggregate operations planning is (are):

Make-to-order companies use inventory whereas make-to-stock companies use backorders to shift demand.

A major factor in choosing a strategy in aggregate operations planning is overall cost.

Backorders can be thought of as negative inventory.

Disaggregating an aggregate production plan leads to a master production schedule.

An advantage of a "chase" strategy in aggregate operations planning is that it provides greater stability in operations based on a steady rate of output.

What quantity is available for commitment to new customers prior to the receipt of the production quantity in week 3?

An example of a demand option in aggregate operations planning is the use of backorders.

Which of the following is not an input to the aggregate operations planning process?

One option in aggregate planning that shifts the pattern of demand from one period to another is:

In practice,the more commonly used techniques for aggregate operations planning are:

One option for altering the capacity available in aggregate planning is:

Aggregate operations planners sometimes use optimization techniques such as linear programming for planning.

Which of the following are examples of intermediate operations planning decisions? I.Deciding on the amount of inventory to hold II.Deciding on which production equipment to purchase III.Deciding on the location of a production facility

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

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