Exam 13: Aggregate Planning

A manufacturer of industrial seafood processing equipment wants you to develop an aggregate plan for the four quarters of the upcoming year using the following data on demand and capacity. a.Find the optimal plan using the transportation method. b.What is the cost of the plan? c.Does any regular time capacity go unused? How much in what periods? d.What capacity went unused in this solution (list in detail)?

Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.

________ is the process of breaking the aggregate plan into greater detail.

Which of the following is consistent with a pure chase strategy?

Planning tasks associated with loading,sequencing,expediting,and dispatching typically fall under

One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.

Aggregate planning is capacity planning for

Aggregate planning for service firms that provide intangible output deals mainly with

Which of these aggregate planning strategies adjusts capacity to match demand?

Because service firms do not inventory their output,pure chase strategy is not appropriate.

The ________ is a formal planning model built around a manager's experience and performance.

A small private university normally charges the same price -$200-per credit-hour for all courses and for all students.While the university is pretty near capacity in the fall and spring,it finds that its classrooms are only about 60% occupied during the summer session.A student of operations management (who has recently read this chapter)wonders if yield management might be useful to both the university and its students alike.This student,with help from some economics majors,estimates a demand curve for summer course enrollment.Points on this demand curve include 9000 credit-hours at the current rate of $200,12,000 credit hours at $180,15,000 credit-hours at $160,and 18,000 credit-hours at $140.Based on this demand curve,what price point would best serve the university,if its objective is the greatest revenue for the summer session?

The ________ strategy sets production equal to forecasted demand.

Which of the following inputs helps an aggregate planner select the rate of output for a facility over the next 3 to 18 months?

In aggregate planning,the amount of overtime and the size of the work force are both adjustable elements of capacity.

The transportation method of linear programming is an optimizing approach to aggregate planning.

Top executives tend to focus their attention on which type of forecasts?

Identify some firms that provide yield management software.

"Yield management" is best described as

A manager is applying the transportation model of linear programming to solve an aggregate planning problem.Demand in period 1 is 100 units and in period 2 demand is 150 units.The manager has 125 hours of regular employment available for $10/hour each period.In addition,50 hours of overtime are available for $15/hour each period.If holding costs are $2 per unit each period,how many hours of regular employment should be used in period 1 (assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour)?