Exam 13: Aggregate Planning

Using the following for questions 95, 96, & 97 -Calculate the total cost to meet the demand using a level production plan with overtime. Once overtime is approved the workers are on the job 12 hours each day for the full period. Each unit that cannot be completed with a level product plan costs the firm $150. Assume that the employees can only finish a whole unit and round up/down accordingly.

Which of the following is not typical of overtime?

Shifting demand makes sense when the company has ______________________.

What are the steps involved in developing the aggregate plan?

Using the following for questions 95, 96, & 97 -Calculate the total cost to meet the demand using a chase production plan with overtime. Once overtime is approved the workers are on the job 12 hours each day for the full period.

The aggregate plan helps manufacturing with all of the following except:

In the level production plan you do not add ______, _____ or ______ to meet peak demand.

The master production schedule is a statement of upcoming demand.

If the marketing plan does not meet the strategic business objectives, top management and marketing revise either the _________ or the ___________.

The chase aggregate plan maintains a constant workforce and produces the same amount of product in each time period.

A company's ____________ plan is a statement of the resources available to the operations group during the next 6 to 18 months.

___________________ is an important advantage of level production plans.

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

In evaluating the current situation, the point of departure is the size of the change that is needed.

Which of the following best describes subcontracting?

During overtime worker productivity increases due to the increase salary received

Develop a hybrid aggregate plan with inventory, but no back orders. Also, use no undertime and no subcontracting. Also use no firing, since the company is projecting a 20% annual growth rate per year over the next several years. When demand minus opening inventory exceeds regular plus maximum overtime production, hire enough employees to meet demand, working as much overtime as possible. When demand is less than regular time production, work no overtime and add to inventory (data given above). (a)What is the workforce at the end of the last period? How many total were hired? (b)How many total units were produced using overtime? (c)What is the maximum ending inventory and when does it occur? (d)What is the total cost? (e)What is the cost per unit?

There are a limited number of options that are applicable to a hybrid aggregate plan.

Which of the following is not typically contained in the marketing plan?

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