Question 1

What are the characteristics of the marketing plan?

Accepted Answer

intended to meet the objectives of the strategic plan; identifies the sales needed to achieve the profitability level, growth rate, and the return on investment stated in the strategic plan; detailed are the targeted market segments, necessary market share, competitive focus, such as price, quality, flexibility, or time, expected profit margins, and new products needed

Question 2

What are the two primary objectives of aggregate planning?

Accepted Answer

A)  material availability and supplier size 
B)  total cost and production rate 
C)  input rate and training for employees 
D)  output rate and workforce size 
E)  transportation rate and workforce size 
A)  material availability and supplier size 
B)  total cost and production rate 
C)  input rate and training for employees 
D)  output rate and workforce size 
E)  transportation rate and workforce size D

Question 3

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

Accepted Answer

A)  materials requirements plan 
B)  engineering plan 
C)  rough-cut capacity plan 
D)  master production schedule 
E)  purchasing plan 
A)  materials requirements plan 
B)  engineering plan 
C)  rough-cut capacity plan 
D)  master production schedule 
E)  purchasing plan D

Question 4

When a company's product is nontangible (a service), which of the following is no longer a viable option?

Accepted Answer

A)  hiring permanent employees 
B)  subcontracting 
C)  inventory 
D)  working overtime 
E)  increasing normal capacity 
A)  hiring permanent employees 
B)  subcontracting 
C)  inventory 
D)  working overtime 
E)  increasing normal capacity

Question 5

Sales and operations planning integrates the medium-range functional plans for all except which of the following?

Accepted Answer

A)  marketing 
B)  operations 
C)  human resources 
D)  engineering 
E)  finance 
A)  marketing 
B)  operations 
C)  human resources 
D)  engineering 
E)  finance

Question 6

A demand-based option in which the marketing tries to shift demand patterns to minimize demand fluctuations is called

Accepted Answer

A)  hyperactive 
B)  inactive 
C)  proactive 
D)  reactive 
E)  retroactive 
A)  hyperactive 
B)  inactive 
C)  proactive 
D)  reactive 
E)  retroactive

Question 7

What are the characteristics of overtime?

Accepted Answer

typically involves a 50% wage

Question 8

Which of the following is an advantage of producing at average demand levels?

Accepted Answer

A)  inventory fluctuates 
B)  allows for a lower investment in capacity 
C)  minimizes space needs for inventory 
D)  minimizes finished good holding costs 
E)  makes it difficult to calculate average production 
A)  inventory fluctuates 
B)  allows for a lower investment in capacity 
C)  minimizes space needs for inventory 
D)  minimizes finished good holding costs 
E)  makes it difficult to calculate average production

Question 9

The comparison of aggregate plans is difficult when they produce different quantities and have different ending inventories.

Accepted Answer

A) True 
 B)False

Question 10

Develop a level aggregate plan using inventory and back orders (data given above).
(a) What is the production rate per period?
(b) No overtime is to be used. What is the required workforce level and how many workers are hired or fired at the beginning of period 1?
(c) What is the maximum ending inventory and when does it occur?
(d) What is the maximum amount of back orders and when does it occur?
(e) What is the total cost?
(f) What is the cost per unit?

Accepted Answer

(a) 3,680 units; (b) 46 worker

Question 11

. What type of aggregate plan sets labor and equipment capacity to satisfy demand each period?

Accepted Answer

A)  uniform 
B)  level 
C)  chase 
D)  mixed 
E)  steady 
A)  uniform 
B)  level 
C)  chase 
D)  mixed 
E)  steady

Question 12

Shifting demand makes sense when the company has ______________________.

Accepted Answer

A)  lots of space for inventory 
B)  low inventory carrying costs 
C)  equipment that is highly flexible with respect to production volume changes 
D)  high fixed costs and low variable costs 
E)  excess capacity 
A)  lots of space for inventory 
B)  low inventory carrying costs 
C)  equipment that is highly flexible with respect to production volume changes 
D)  high fixed costs and low variable costs 
E)  excess capacity

Question 13

For the following data, verify the amount of employees needed.

Accepted Answer

A)  20 
B)  5 
C)  34 
D)  25 
E)  15 
A)  20 
B)  5 
C)  34 
D)  25 
E)  15

Question 14

Explain the Reactive vs. Proactive Demand-based options.

Accepted Answer

Reactive uses finished goods inventory,

Question 15

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

Accepted Answer

A)  product design 
B)  target markets 
C)  new products 
D)  profit margin 
E)  competitive focus 
A)  product design 
B)  target markets 
C)  new products 
D)  profit margin 
E)  competitive focus

Question 16

What are the difficulties associated with back orders?

Accepted Answer

Customers may take their busin

Question 17

Evaluating an aggregate plan in terms of inventory levels is using what perspective?

Accepted Answer

A)  cost 
B)  customer service 
C)  quality 
D)  operations 
E)  human resources 
A)  cost 
B)  customer service 
C)  quality 
D)  operations 
E)  human resources

Question 18

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?

Accepted Answer

(a) 154 hours; (b) 2

Question 19

The goal of developing an aggregate plan using composite product information is:

Accepted Answer

A)  group like things together 
B)  reduce the number of calculations 
C)  keep it simple for senior management 
D)  help marketing plan 
E)  provide detail reports 
A)  group like things together 
B)  reduce the number of calculations 
C)  keep it simple for senior management 
D)  help marketing plan 
E)  provide detail reports

Question 20

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

Accepted Answer

A) True 
 B)False

What are the characteristics of the marketing plan?

What are the two primary objectives of aggregate planning?

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

When a company's product is nontangible (a service), which of the following is no longer a viable option?

Sales and operations planning integrates the medium-range functional plans for all except which of the following?

A demand-based option in which the marketing tries to shift demand patterns to minimize demand fluctuations is called

What are the characteristics of overtime?

Which of the following is an advantage of producing at average demand levels?

The comparison of aggregate plans is difficult when they produce different quantities and have different ending inventories.

. What type of aggregate plan sets labor and equipment capacity to satisfy demand each period?

Shifting demand makes sense when the company has ______________________.

For the following data, verify the amount of employees needed.

Explain the Reactive vs. Proactive Demand-based options.

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

What are the difficulties associated with back orders?

Evaluating an aggregate plan in terms of inventory levels is using what perspective?

The goal of developing an aggregate plan using composite product information is:

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

Introduction to Operations Management

Operations Strategy and Competitiveness

Product Design and Process Selection

Supply Chain Management

Total Quality Management

Statistical Quality Control

Just-In-Time and Lean Systems

Forecasting

Capacity Planning and Facility Location

Facility Layout

Work System Design

Inventory Management

Resource Planning

Scheduling

Project Management

Spreadsheet Modeling: An Introduction

Introduction to Optimization

Waiting Line Models

Master Scheduling and Rough-Cut Capacity Planning

Filters

Exam 13: Aggregate Planning

What are the characteristics of the marketing plan?

What are the two primary objectives of aggregate planning?

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

When a company's product is nontangible (a service), which of the following is no longer a viable option?

Sales and operations planning integrates the medium-range functional plans for all except which of the following?

A demand-based option in which the marketing tries to shift demand patterns to minimize demand fluctuations is called

What are the characteristics of overtime?

Which of the following is an advantage of producing at average demand levels?

The comparison of aggregate plans is difficult when they produce different quantities and have different ending inventories.

. What type of aggregate plan sets labor and equipment capacity to satisfy demand each period?

Shifting demand makes sense when the company has ______________________.

For the following data, verify the amount of employees needed.

Explain the Reactive vs. Proactive Demand-based options.

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

What are the difficulties associated with back orders?

Evaluating an aggregate plan in terms of inventory levels is using what perspective?

The goal of developing an aggregate plan using composite product information is:

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

Introduction to Operations Management

Operations Strategy and Competitiveness

Product Design and Process Selection

Supply Chain Management

Total Quality Management

Statistical Quality Control

Just-In-Time and Lean Systems

Forecasting

Capacity Planning and Facility Location

Facility Layout

Work System Design

Inventory Management

Resource Planning

Scheduling

Project Management

Spreadsheet Modeling: An Introduction

Introduction to Optimization

Waiting Line Models

Master Scheduling and Rough-Cut Capacity Planning

Filters