Exam 12: Demand Planning: Forecasting and Demand Management

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months.The company's expected monthly demand is given in the following chart.The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month.Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month.LEVEL PLAN What is the total inventory carrying cost for the level plan?

Within the hierarchy of planning, the Sales & Operations Planning system occurs at which of the following levels?

The focus of an aggregate production plan, in general, is on all of the following EXCEPT:

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters.The company's expected quarterly demand is given in the following chart.The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter.Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. Given this data, what is the total cost of a LEVEL plan?

Which of the following is NOT one of the costs considered in aggregate production planning?

Dave's Stove-Top Popcorn currently has three full-time employees who are each paid $1,500 per month.An employee can only work a maximum of 100 hours per month because production normally takes place at night.They do receive $1,500 even if they do not work 100 hours, however.Part-time employees can be hired at a cost of $25 per hour.Dave's Stove-Top Popcorn has forecasted that demand for the next six months will be as follows: What is the total cost if Dave relies on part-time employees to meet additional demand?

The process of replanning each period for a given number of periods into the future is referred to as which of the following terms?

Every year around mid May, the Grand Hotel on Mackinac Island runs a special to coincide with the Lilac Festival.This special offers visitors a three day stay (3 days/2 nights) combined with all meals and a guided tour of the various Lilac displays.Which of the following terms best captures this program?

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters.The company's expected quarterly demand is given in the following chart.The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter.Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. Given this data, what is the inventory carrying cost of a LEVEL plan?

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months.The company's expected monthly demand is given in the following chart.The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month.Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month.LEVEL PLAN What is the regular monthly actual production for a level plan?

Zanda Corporation is preparing an aggregate production plan for its product for the next four months.The company's expected monthly demand is given in the following chart.The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month.Following is other critical data: Production cost per unit = $125 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $50 Firing cost per worker = $100 Beginning number of workers = 25 Each worker can produce 25 units per month. The total inventory carrying cost of a chase plan is:

Which of the following is true concerning sales and operations planning?

Zanda Corporation is preparing an aggregate production plan for its product for the next four months.The company's expected monthly demand is given in the following chart.The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month.Following is other critical data: Production cost per unit = $125 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $50 Firing cost per worker = $100 Beginning number of workers = 25 Each worker can produce 25 units per month. What is the total cost of a CHASE plan (using hiring/firing)?

Which of the following is NOT an input into the S&OP?

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months.The company's expected monthly demand is given in the following chart.The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month.Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month.CHASE PLAN What is the total cost of hiring and firing the workers in a chase plan which uses only hiring and firing?

Zanda Corp.and Jones Corp.are identical in every way (products produced, costs, demand, etc.) except for one.Zanda uses a level production plan while Jones prefers a chase production plan.Which of the following is most likely to be true?

If a make-to-stock manufacturing firm with highly seasonal demand follows a chase demand strategy, which of the following is likely to be true?

John Jones, senior VP for Zanda Corp., is looking at three alternative aggregate production plans for the next six-month period.At his company, demand varies by month with substantial month-to-month differences.The three alternatives are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan.He is most likely to find that the hybrid plan:

Dave's Stove-Top Popcorn currently has three full-time employees who are each paid $1,500 per month.An employee can only work a maximum of 100 hours per month because production normally takes place at night.They do receive $1,500 even if they do not work 100 hours, however.Part-time employees can be hired at a cost of $25 per hour.Dave's Stove-Top Popcorn has forecasted that demand for the next six months will be as follows: What is the total cost if Dave hires one more full-time employee to meet additional demand?

If a company strongly prefers that its aggregate output plan be closer to a level plan than a chase plan, this implies that it is concerned about minimizing: