Exam 22: Operational Decision-Making Tools: Simulation

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 cost of the level production plan (inventory costs plus hiring and firing costs) is

One of several strategies for managing demand is to shift it into other time periods using incentives, sales promotions, and advertising.

The process of breaking an aggregate plan into more detailed plans is referred to as

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

What are the outputs of aggregate planning?

What is aggregate planning and what alternatives are generally feasible when developing the aggregate production plans?

A company is developing a linear programming model for its aggregate production plan. If Wt = workforce size for period t, Ht = number of workers hired for period t, and Ft = number of workers fired for period t, then the company's workforce constraint for period 4 is

Given the information below, the number of available-to-promise units in period 1 is

The difference between planned production and customer orders is known as

The transportation method is used for aggregate planning when the strategy for adjusting capacity is hiring and firing workers.

An operations plan is an input into the sales and operations planning process.

A bagel company bakes a specialty bagel that it sells by the dozen every day. These specialty bagels can only be baked early in the morning before the store opens for business. The company estimates that the daily demand (in dozens) for its specialty bagel is distributed as follows: Specialty bagels are sold by the dozen only at a cost of $9.00 per dozen. The cost to bake each bagel is $0.50. Leftover specialty bagels are sold by the dozen the next day for a 50% discount. The bagel company's cost of underestimating demand, C_u, is

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 chase demand strategy is used then the number of workers hired at the start of quarter 2 is

Which of the following is an objective to sales and operations planning?

Most companies use mixed strategies for production planning.

In capacity planning, the feasibility of the sales and operations production plan is verified by a

Financial constraints are one of the major inputs of the sales and operations planning process.

Most companies use mixed strategies for managing demand.

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 50 workers Production per Employee = 250 units per quarter Hiring Cost = $1000 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $15 per unit per quarter If a chase demand strategy is used then the number of workers hired at the start of quarter 2 is

All of the following are inputs to the aggregate production planning process except