Question 1

Aggregate planning should consider information from

Accepted Answer

A) only the enterprise as its breadth of scope. 
B) downstream partners to produce forecasts. 
C) upstream partners to determine constraints. 
D) all of the above 
A) only the enterprise as its breadth of scope. 
B) downstream partners to produce forecasts. 
C) upstream partners to determine constraints. 
D) all of the above D

Question 2

Advanced planning systems for aggregate planning rely heavily on ________ to deliver their full potential.

Accepted Answer

A) forecasting 
B) the supply chain 
C) constraints 
D) data accuracy 
A) forecasting 
B) the supply chain 
C) constraints 
D) data accuracy D

Question 3

The strategy where a stable machine capacity and workforce are maintained with a constant output rate,with inventory levels fluctuating over time,is the

Accepted Answer

A) adjustable strategy. 
B) chase strategy. 
C) level strategy. 
D) mixed strategy. 
A) adjustable strategy. 
B) chase strategy. 
C) level strategy. 
D) mixed strategy. C

Question 4

The earliest supply chain software products were

Accepted Answer

A) aggregate planning modules. 
B) cloud-based. 
C) SaaS (software as a service). 
D) enterprise resource planning modules. 
A) aggregate planning modules. 
B) cloud-based. 
C) SaaS (software as a service). 
D) enterprise resource planning modules.

Question 5

Much of aggregate planning has traditionally been focused

Accepted Answer

A) on short-term production scheduling. 
B) on customer relationship management. 
C) within an enterprise. 
D) beyond enterprise boundaries. 
A) on short-term production scheduling. 
B) on customer relationship management. 
C) within an enterprise. 
D) beyond enterprise boundaries.

Question 6

A linear programming formulation of an aggregate plan would typically use a constraint to limit the number of units produced using overtime or subcontracting labor.

Accepted Answer

A) True 
 B)False

Question 7

The fundamental trade-offs available to an aggregate planner are between

Accepted Answer

A) capability,inventory,and backlog costs. 
B) capability,inventory,and sales costs. 
C) capacity,inventory,and backlog costs. 
D) capacity,inventory,and sales costs. 
A) capability,inventory,and backlog costs. 
B) capability,inventory,and sales costs. 
C) capacity,inventory,and backlog costs. 
D) capacity,inventory,and sales costs.

Question 8

Suppose management decides to relax the policy about stockouts on a month-to-month basis.Instead,they just want to make sure that they end the entire five-month planning period with a zero balance on inventory.They have never worked this way before and don't have an idea what it costs to stockout,so they assign a value of $0 for each unit stocked out.What is the optimal planning period cost?

Accepted Answer

A) $42,520 
B) $45,220 
C) $40,225 
D) $42,250 
A) $42,520 
B) $45,220 
C) $40,225 
D) $42,250

Question 9

The aggregate plan needs to

Accepted Answer

A) be a final product because changes are disruptive to the supply chain. 
B) be considered fixed because forecasts are usually accurate. 
C) have some flexibility built into it because forecasts are always wrong. 
D) have some flexibility built into it because forecasts are usually right. 
A) be a final product because changes are disruptive to the supply chain. 
B) be considered fixed because forecasts are usually accurate. 
C) have some flexibility built into it because forecasts are always wrong. 
D) have some flexibility built into it because forecasts are usually right.

Question 10

Forecasting errors are dealt with using

Accepted Answer

A) safety backlog. 
B) safety capacity. 
C) safety inventory. 
D) B and C only 
A) safety backlog. 
B) safety capacity. 
C) safety inventory. 
D) B and C only

Question 11

Explain the basic strategies that an aggregate planner has available to balance the various costs and meet demand.

Accepted Answer

There are essentially three distinct agg

Question 12

Scenario 8.2 - Willow
A company faces the aggregate planning problem shown in the table below.Cost of regular production is $8 per unit,the cost of producing the same unit on overtime is $15,the cost of subcontracting is $12 per unit,and the cost of carrying a unit in inventory from one month to the next is $6.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \
\hline \text { Forecast } & 400 & 800 & 1200 & 700 & 300 \
\hline \text { Beginning Inventory } & 100 & & & & \
\hline \text { Regular Time } & & & & & \
\hline \text { Overtime } & & & & & \
\hline \text { Subcontracting } & & & & & \
\hline \text { Ending Inventory } & & & & & \
\hline
\end{array}$$ The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five-month window.The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week.By policy,management wants to avoid stockouts.
-Without actually solving the aggregate planning problem,it is safe to conclude that in the optimal solution to Scenario 8.2,

Accepted Answer

A) the total ending inventory will exceed the number of units made using overtime. 
B) the number of units made using subcontracting will exceed the number of units made using overtime. 
C) the number of units made using regular time will exceed the forecast. 
D) the number of units made using subcontracting will exceed the number of units made using regular time. 
A) the total ending inventory will exceed the number of units made using overtime. 
B) the number of units made using subcontracting will exceed the number of units made using overtime. 
C) the number of units made using regular time will exceed the forecast. 
D) the number of units made using subcontracting will exceed the number of units made using regular time.

Question 13

Short-term production serves as a broad blueprint for operations and establishes the parameters within which aggregate planning decisions are made.

Accepted Answer

A) True 
 B)False

Question 14

What is the name of the plan that breaks apart the aggregate plan into distinct product families?

Accepted Answer

A) Rough master production schedule 
B) Rough cut capacity plan 
C) SKU aggregate plan 
D) Process plan 
A) Rough master production schedule 
B) Rough cut capacity plan 
C) SKU aggregate plan 
D) Process plan

Question 15

Traditionally,much of aggregate planning is focused within an enterprise and may not always be seen as a part of supply chain management.

Accepted Answer

A) True 
 B)False

Question 16

Given that forecasts are always wrong to some degree,the aggregate plan needs to have some flexibility built into it if it is to be useful.

Accepted Answer

A) True 
 B)False

Question 17

Demand is forecast for the next five months as 200,300,500,300,200.The production planner decides to adopt a chase strategy,so over the next five months they should produce

Accepted Answer

A) 200,300,500,300,200. 
B) 500,400,300,200,100. 
C) 100,200,300,400,500. 
D) 300,300,300,300,300. 
A) 200,300,500,300,200. 
B) 500,400,300,200,100. 
C) 100,200,300,400,500. 
D) 300,300,300,300,300.

Question 18

Most strategies that an aggregate planner actually uses are in combination,and are referred to as hybrid strategies.

Accepted Answer

A) True 
 B)False

Question 19

The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is

Accepted Answer

A) production rate. 
B) overtime. 
C) backlog. 
D) inventory on hand. 
A) production rate. 
B) overtime. 
C) backlog. 
D) inventory on hand.

Question 20

Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.

Accepted Answer

A) True 
 B)False

Aggregate planning should consider information from

Advanced planning systems for aggregate planning rely heavily on ________ to deliver their full potential.

The strategy where a stable machine capacity and workforce are maintained with a constant output rate,with inventory levels fluctuating over time,is the

The earliest supply chain software products were

Much of aggregate planning has traditionally been focused

A linear programming formulation of an aggregate plan would typically use a constraint to limit the number of units produced using overtime or subcontracting labor.

The fundamental trade-offs available to an aggregate planner are between

The aggregate plan needs to

Forecasting errors are dealt with using

Explain the basic strategies that an aggregate planner has available to balance the various costs and meet demand.

Short-term production serves as a broad blueprint for operations and establishes the parameters within which aggregate planning decisions are made.

What is the name of the plan that breaks apart the aggregate plan into distinct product families?

Traditionally,much of aggregate planning is focused within an enterprise and may not always be seen as a part of supply chain management.

Given that forecasts are always wrong to some degree,the aggregate plan needs to have some flexibility built into it if it is to be useful.

Demand is forecast for the next five months as 200,300,500,300,200.The production planner decides to adopt a chase strategy,so over the next five months they should produce

Most strategies that an aggregate planner actually uses are in combination,and are referred to as hybrid strategies.

The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is

Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 8: Aggregate Planning in a Supply Chain

Aggregate planning should consider information from

Advanced planning systems for aggregate planning rely heavily on ________ to deliver their full potential.

The strategy where a stable machine capacity and workforce are maintained with a constant output rate,with inventory levels fluctuating over time,is the

The earliest supply chain software products were

Much of aggregate planning has traditionally been focused

A linear programming formulation of an aggregate plan would typically use a constraint to limit the number of units produced using overtime or subcontracting labor.

The fundamental trade-offs available to an aggregate planner are between

The aggregate plan needs to

Forecasting errors are dealt with using

Explain the basic strategies that an aggregate planner has available to balance the various costs and meet demand.

Short-term production serves as a broad blueprint for operations and establishes the parameters within which aggregate planning decisions are made.

What is the name of the plan that breaks apart the aggregate plan into distinct product families?

Traditionally,much of aggregate planning is focused within an enterprise and may not always be seen as a part of supply chain management.

Given that forecasts are always wrong to some degree,the aggregate plan needs to have some flexibility built into it if it is to be useful.

Demand is forecast for the next five months as 200,300,500,300,200.The production planner decides to adopt a chase strategy,so over the next five months they should produce

Most strategies that an aggregate planner actually uses are in combination,and are referred to as hybrid strategies.

The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is

Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters