Question 1

What is total forecasted demand?

Accepted Answer

1,800 units

Question 2

An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low.

Accepted Answer

A) True 
 B)False  True

Question 3

A manager has prepared a forecast of expected aggregate demand for the next six months.Develop an aggregate 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 in ending inventory.Determine the cost of this plan if regular time cost is $20 per unit and beginning inventory is zero.

Accepted Answer

The aggregate plan should look like this:   With costs as follows:   Total cost of this plan is $12,200.

Question 4

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 5

One area to which aggregate planning decisions relate is:

Accepted Answer

A) job sequencing 
B) customer order quantities 
C) inventory levels 
D) location 
E) layout 
A) job sequencing 
B) customer order quantities 
C) inventory levels 
D) location 
E) layout

Question 6

Which term is most closely associated with the term disaggregation?

Accepted Answer

A) subcontracting 
B) master schedule 
C) diversity 
D) varying inventory levels 
E) firing and laying off 
A) subcontracting 
B) master schedule 
C) diversity 
D) varying inventory levels 
E) firing and laying off

Question 7

Aggregate planners typically use mathematical techniques such as linear programming and linear decision rules for planning.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) varying output during regular time without changing employment levels 
B) varying output during regular time by changing employment levels 
C) (a) and (b) 
D) varying inventory levels 
E) price increases 
A) varying output during regular time without changing employment levels 
B) varying output during regular time by changing employment levels 
C) (a) and (b) 
D) varying inventory levels 
E) price increases

Question 9

Departmental budgeting is an example of aggregate planning.

Accepted Answer

A) True 
 B)False

Question 10

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

Accepted Answer

A) customer 
B) staff 
C) inventory 
D) subcontracting 
E) outsourcing 
A) customer 
B) staff 
C) inventory 
D) subcontracting 
E) outsourcing

Question 11

When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.

Accepted Answer

A) Layoffs 
B) Backorders 
C) Excess capacity 
D) Disaggregation 
E) Both B and C 
A) Layoffs 
B) Backorders 
C) Excess capacity 
D) Disaggregation 
E) Both B and C

Question 12

The output from aggregate planning is a detailed business plan covering the next 2 to 12 months.

Accepted Answer

A) True 
 B)False

Question 13

In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with:

Accepted Answer

A) just gallons of paint, without concern for the different colors and sizes 
B) gallons of paint, but be concerned with the different colors to be produced 
C) gallons, quarts, pints, and all the different sizes to be produced 
D) all the different sizes and all the different colors by size 
E) none of the above 
A) just gallons of paint, without concern for the different colors and sizes 
B) gallons of paint, but be concerned with the different colors to be produced 
C) gallons, quarts, pints, and all the different sizes to be produced 
D) all the different sizes and all the different colors by size 
E) none of the above

Question 14

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 15

How should overtime capacity be utilized?

Accepted Answer

40 units e

Question 16

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 17

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

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 18

Seasonality in demand has the advantage of leveling out requirements for our product or service.

Accepted Answer

A) True 
 B)False

Question 19

What are total regular time costs?

Accepted Answer

The answer of What are total regular time costs?...

Question 20

Aggregate planners commonly use trial-and-error methods in developing aggregate plans.

Accepted Answer

A) True 
 B)False

Exam 11: Aggregate Planning and Master Scheduling

What is total forecasted demand?

An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low.

Proactive and Reactive aggregate planning strategies are best associated with:

One area to which aggregate planning decisions relate is:

Which term is most closely associated with the term disaggregation?

Aggregate planners typically use mathematical techniques such as linear programming and linear decision rules for planning.

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

Departmental budgeting is an example of aggregate planning.

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.

The output from aggregate planning is a detailed business plan covering the next 2 to 12 months.

In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with:

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.

How should overtime capacity be utilized?

Uncommitted inventory is called ....

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

Seasonality in demand has the advantage of leveling out requirements for our product or service.

What are total regular time costs?

Aggregate planners commonly use trial-and-error methods in developing aggregate plans.

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

MRP and ERP

Inventory Management

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Extension 4: Reliability

Extension 5: Decision Theory

Extension 7: Learning Curves

Extension 8: The Transportation Model

Extension 10: Acceptance Sampling

Extension 14: Maintenance

Filters