Exam 13: Aggregate Planning

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Develop a chase aggregate plan without inventory and back orders.Do no hiring or firing.When demand exceeds regular production,use overtime up to its maximum and then subcontracting.When demand is less than regular production,use undertime (data given above). (a)What are the total hours of overtime per employee for the plan? (b)How many total units are produced using subcontracting? (c)What are the total hours of undertime per employee for the plan? (d)What is the total cost? (e)What is the cost per unit?

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If Frank has 200 chickens in stock and he forecasts the following monthly demands.Using a level production plan how many chickens will Frank need to supply each month to meet the demand? January = 300 February =250 March = 180 April = 175 May =200 June = 240 July = 220

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When a company's product is nontangible (a service),inventory is no longer a viable option.

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The purpose of the aggregate plan is to develop production rates and authorize resources that accommodate the engineering plan.

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The aggregate plan is usually updated and reevaluated monthly by the operations group.

(True/False)
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What are the disadvantages for firing permanent employees?

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The next level down in the planning process after development of the aggregate plan is the _____________.

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What are the disadvantages for hiring permanent employees?

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Which of the following is not typical of overtime?

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Demand-based options include two reactive options and two proactive options.

(True/False)
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In evaluating the current situation,the ____________ is the percentage of normal capacity at which the company is currently operating.

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What are the characteristics of undertime?

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One disadvantage of using undertime is

(Multiple Choice)
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Shifting demand makes sense when the company has high fixed costs and low variable costs.

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An advantage of the chase aggregate plan is that it minimizes finished good holding costs.

(True/False)
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Sam's dry cleaning store has 3 employees who fold the clothes.Each employee can fold 45 shirts every hour.Assuming a level aggregate program how many employees will Sam need if to meet a demand of 1600 shirts per day if everyone works an 8 hour shift?

(Multiple Choice)
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Which of the following is not a primary objective of the master production schedule?

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Companies that use back orders are asking their customers to ___________________.

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A proactive marketing approach in aggregate planning involves ____________________.

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___________________ is an important advantage of level production plans.

(Short Answer)
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