Exam 22: Operational Decision-Making Tools: Simulation

The level strategy for adjusting capacity is only appropriate when there is no variation in demand.

A mixed strategy for adjusting capacity is simpler and easier to implement than any pure strategy.

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 125 workers Production per Employee = 500 units per quarter Hiring Cost = $750 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $10 per unit per quarter If a chase demand strategy is used the number of workers fired at the start of quarter 3 is

One objective of sales and operations planning is to develop a companywide game plan to satisfy production.

Subcontracting is a feasible alternative for adjusting capacity provided the supplier can reliably meet quality and time requirements.

Adjusting available capacity by hiring and firing workers to match demand is an example of a(n) ________ strategy.

Sharing information and synchronizing production across the supply chain is known as disaggregation.

A company is developing a linear programming model for its aggregate production plan. If It = units in inventory at the end of period t, Pt = units produced in period t, and Dt = demand in period t, then the company's demand constraint to ensure that demand is met in quarter 3 is

Shifting demand into other time periods can be accomplished through

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 35 workers Production per Employee = 1,250 units per quarter Hiring Cost = $500 per worker Firing Cost = $1,000 per worker Inventory Carrying Cost = $20 per unit per quarter If a level production strategy is used then the required quarterly output is

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 125 workers Production per Employee = 500 units per quarter Hiring Cost = $750 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $10 per unit per quarter If a level production strategy is used the number of workers required each quarter is

Given the information below, the number of available-to-promise units in period 4 is

A hotel manager must decide how many rooms to overbook. Room rates are $125 per night and each room costs $45 to maintain. A bumped customer is sent to another hotel at a cost of $75. Given the distribution of no-shows below, how many rooms should the manager overbook?

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 125 workers Production per Employee = 500 units per quarter Hiring Cost = $750 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $10 per unit per quarter If a level production strategy is used the number of units to produce each quarter is

An optimizing technique originally developed for aggregate planning in the paint factory is the

The most effective aggregate planning strategy depends on

Overtime and undertime are common strategies for adjusting demand.

A hot dog vendor must decide on Monday how many hot dogs to have available for the coming Saturday's football game. Each hot dog costs the vendor $3.00 and is sold for $5.00. After the game any unsold hot dogs are discounted and sold to the university cafeteria for $1.75. The vendor believes that the demand for hot dogs follows the probability distribution shown below: The optimal number of hot dogs the vendor should order for next Saturday's game is

Inventory holding costs are an important consideration for the level production strategy.

An economic strategy for adjusting demand can include adjusting capacity or managing demand.