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. -What is the optimal total cost of the aggregate plan developed to address Scenario 8.2?

A) $27,200 B) $20,960 C) $31,400 D) $26,600 A) $27,200 B) $20,960 C) $31,400 D) $26,600

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. -How many units are produced using overtime in the optimal aggregate plan developed to address Scenario 8.2?

A) 360 B) 200 C) 400 D) 280 A) 360 B) 200 C) 400 D) 280

Scenario 8.1 - Gang Aft Agley Gang Aft Agley,a manufacturing company,faces the aggregate planning problem shown in the table below.Cost of regular production is $5 per unit,the cost of producing the same unit on overtime is $7.50,the cost of subcontracting is $9 per unit,and the cost of carrying a unit in inventory from one month to the next is $2. \[\begin{array} { | l | c | c | c | c | c | } \hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \\ \hline \text { Forecast } & 500 & 750 & 1200 & 650 & 300 \\ \hline \text { Beginning Inventory } & 100 & & & & \\ \hline \text { Regular Time } & & & & & \\ \hline \text { Overtime } & & & & & \\ \hline \text { Subcontracting } & & & & & \\ \hline \text { Ending Inventory } & & & & & \\ \hline \end{array}\] The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window.The plant capacity is 600 units per month produced using two shifts,regardless of the number of days in a month.By policy,management wants to avoid stockouts. -What is the optimal total cost of the aggregate plan developed to address Scenario 8.1?

A) $16,700 B) $18,950 C) $18,450 D) $16,250 A) $16,700 B) $18,950 C) $18,450 D) $16,250

Scenario 8.3 - Mousetraps A company faces the aggregate planning problem shown in the table below.Cost of regular production is $15 per unit,the cost of producing the same unit on overtime is $22.50,the cost of subcontracting is $27 per unit,and the cost of carrying a unit in inventory from one month to the next is $10. \[\begin{array} { | l | c | c | c | c | c | } \hline & \text { July } & \text { August } & \text { September } & \text { October } & \text { November } \\ \hline \text { Forecast } & 800 & 650 & 450 & 550 & 900 \\ \hline \text { Beginning Inventory } & 140 & & & & \\ \hline \text { Regular Time } & & & & & \\ \hline \text { Overtime } & & & & & \\ \hline \text { Subcontracting } & & & & & \\ \hline \text { Ending Inventory } & & & & & \\ \hline \end{array}\] The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 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. -How many units are produced using overtime in the optimal aggregate plan developed to address Scenario 8.3?

A) 250 B) 200 C) 100 D) 180 A) 250 B) 200 C) 100 D) 180

Scenario 8.3 - Mousetraps A company faces the aggregate planning problem shown in the table below.Cost of regular production is $15 per unit,the cost of producing the same unit on overtime is $22.50,the cost of subcontracting is $27 per unit,and the cost of carrying a unit in inventory from one month to the next is $10. \[\begin{array} { | l | c | c | c | c | c | } \hline & \text { July } & \text { August } & \text { September } & \text { October } & \text { November } \\ \hline \text { Forecast } & 800 & 650 & 450 & 550 & 900 \\ \hline \text { Beginning Inventory } & 140 & & & & \\ \hline \text { Regular Time } & & & & & \\ \hline \text { Overtime } & & & & & \\ \hline \text { Subcontracting } & & & & & \\ \hline \text { Ending Inventory } & & & & & \\ \hline \end{array}\] The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 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. -Which month has a positive ending inventory for the optimal aggregate plan for Scenario 8.3?

A) August B) September C) October D) November A) August B) September C) October D) November

Exam 8: Aggregate Planning in a Supply Chain

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

(Multiple Choice)

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Question 21

The process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon is

(Multiple Choice)

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Question 22

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. January February March April May Forecast 400 800 1200 700 300 Beginning Inventory 100 Regular Time Overtime Subcontracting Ending Inventory 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. -What is the optimal total cost of the aggregate plan developed to address Scenario 8.2?

(Multiple Choice)

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Question 23

The goal of aggregate planning is to satisfy demand in a way that minimizes profit.

(True/False)

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Question 24

Discuss the primary objective and operational parameters of aggregate planning.

(Essay)

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Question 25

When formulating aggregate plans,

(Multiple Choice)

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Question 26

As capacity utilization increases,it becomes less important to perform aggregate planning.

(True/False)

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Question 27

The goal of aggregate planning is to

(Multiple Choice)

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Question 28

An aggregate planning horizon is usually between three and five years.

(True/False)

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Question 29

The aggregate planning problem is concerned with determining the production level,inventory level,and capacity level (internal and outsourced)for each period that maximizes the firm's profit over the planning horizon.

(True/False)

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Question 30

A highly effective tool for a company to use when it tries to maximize profits while being subjected to a series of constraints is

(Multiple Choice)

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Question 31

The length of the planning horizon in aggregate planning is usually between

(Multiple Choice)

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Question 32

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. January February March April May Forecast 400 800 1200 700 300 Beginning Inventory 100 Regular Time Overtime Subcontracting Ending Inventory 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. -How many units are produced using overtime in the optimal aggregate plan developed to address Scenario 8.2?

(Multiple Choice)

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Question 33

Scenario 8.1 - Gang Aft Agley Gang Aft Agley,a manufacturing company,faces the aggregate planning problem shown in the table below.Cost of regular production is $5 per unit,the cost of producing the same unit on overtime is $7.50,the cost of subcontracting is $9 per unit,and the cost of carrying a unit in inventory from one month to the next is $2. January February March April May Forecast 500 750 1200 650 300 Beginning Inventory 100 Regular Time Overtime Subcontracting Ending Inventory The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window.The plant capacity is 600 units per month produced using two shifts,regardless of the number of days in a month.By policy,management wants to avoid stockouts. -What is the optimal total cost of the aggregate plan developed to address Scenario 8.1?

(Multiple Choice)

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Question 34

The aggregate plan should be communicated to

(Multiple Choice)

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Question 35

Linear programming finds the solution for an aggregate plan that creates the highest profit while satisfying the constraints that a company faces.

(True/False)

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Question 36

Aggregate planning solves problems involving

(Multiple Choice)

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Question 37

As inputs into the aggregate plan change,managers do not need to make changes to the aggregate plan.

(True/False)

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Question 38

Scenario 8.3 - Mousetraps A company faces the aggregate planning problem shown in the table below.Cost of regular production is $15 per unit,the cost of producing the same unit on overtime is $22.50,the cost of subcontracting is $27 per unit,and the cost of carrying a unit in inventory from one month to the next is $10. July August September October November Forecast 800 650 450 550 900 Beginning Inventory 140 Regular Time Overtime Subcontracting Ending Inventory The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 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. -How many units are produced using overtime in the optimal aggregate plan developed to address Scenario 8.3?

(Multiple Choice)

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Question 39

Scenario 8.3 - Mousetraps A company faces the aggregate planning problem shown in the table below.Cost of regular production is $15 per unit,the cost of producing the same unit on overtime is $22.50,the cost of subcontracting is $27 per unit,and the cost of carrying a unit in inventory from one month to the next is $10. July August September October November Forecast 800 650 450 550 900 Beginning Inventory 140 Regular Time Overtime Subcontracting Ending Inventory The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 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. -Which month has a positive ending inventory for the optimal aggregate plan for Scenario 8.3?

(Multiple Choice)

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Question 40

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

The process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon is

The goal of aggregate planning is to satisfy demand in a way that minimizes profit.

Discuss the primary objective and operational parameters of aggregate planning.

When formulating aggregate plans,

As capacity utilization increases,it becomes less important to perform aggregate planning.

The goal of aggregate planning is to

An aggregate planning horizon is usually between three and five years.

The aggregate planning problem is concerned with determining the production level,inventory level,and capacity level (internal and outsourced)for each period that maximizes the firm's profit over the planning horizon.

A highly effective tool for a company to use when it tries to maximize profits while being subjected to a series of constraints is

The length of the planning horizon in aggregate planning is usually between

The aggregate plan should be communicated to

Linear programming finds the solution for an aggregate plan that creates the highest profit while satisfying the constraints that a company faces.

Aggregate planning solves problems involving

As inputs into the aggregate plan change,managers do not need to make changes to the aggregate plan.

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

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