Question 1

Identify (a)the demand options for aggregate planning;and (b)the capacity (supply)options for aggregate planning.

Accepted Answer

Demand options are: influencing demand (

Question 2

Which of the following aggregate planning strategies might direct your client to a competitor?

Accepted Answer

A) using part-time workers 
B) subcontracting 
C) changing inventory level 
D) varying production rates through overtime or idle time 
E) varying work force size by hiring or layoffs 
A) using part-time workers 
B) subcontracting 
C) changing inventory level 
D) varying production rates through overtime or idle time 
E) varying work force size by hiring or layoffs

Question 3

In aggregate planning,one of the adjustable elements of capacity is the extent of subcontracting.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following aggregate planning strategies is a "demand option"?

Accepted Answer

A) changing price 
B) subcontracting 
C) varying production levels 
D) changing inventory levels 
E) using part-time workers 
A) changing price 
B) subcontracting 
C) varying production levels 
D) changing inventory levels 
E) using part-time workers

Question 5

How does aggregate planning in services differ from aggregate planning in manufacturing?

Accepted Answer

Aggregate planning in services differs f

Question 6

Which of the following actions is consistent with the use of pure level strategy?

Accepted Answer

A) use inventory to meet demand requirements 
B) use overtime to meet higher-than-average demand requirements 
C) vary production levels to meet demand requirements 
D) vary work force to meet demand requirements 
E) use statistical sampling to meet average demand requirements 
A) use inventory to meet demand requirements 
B) use overtime to meet higher-than-average demand requirements 
C) vary production levels to meet demand requirements 
D) vary work force to meet demand requirements 
E) use statistical sampling to meet average demand requirements

Question 7

Which of the following aggregate planning strategies is known to lower employee morale?

Accepted Answer

A) yield management 
B) counterseasonal product and service mixing 
C) changing inventory levels 
D) varying work force size by hiring or layoffs 
E) back ordering during high demand periods 
A) yield management 
B) counterseasonal product and service mixing 
C) changing inventory levels 
D) varying work force size by hiring or layoffs 
E) back ordering during high demand periods

Question 8

Disaggregation is the process of breaking the aggregate plan into greater detail;one example of this detail is the Master Production Schedule.

Accepted Answer

A) True 
 B)False

Question 9

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
   Which of the following production plans is better: Plan A-chase demand by hiring and layoffs;Plan B-pure level strategy,or Plan C-700 level with the remainder by subcontracting?

Accepted Answer

Plan A has cost of $378,000,plan B has c

Question 10

List,in order,the five steps of the graphical method of aggregate planning.Is it possible that these steps can be properly followed and the solution properly implemented without using a graph? Explain.

Accepted Answer

The steps are:
1.Determine the demand in

Question 11

A professional services firm is investigating yield management as a means of taking advantage of unused capacity.Analysts for this firm estimate a demand curve for the firm's service,which is sold by the hour.Points on this demand curve include 9000 hours at the current rate of $60 per hour,9500 hours at $55,10,000 hours at $50,and 10,500 hours at $45.Based on this demand curve,what price point would be best for the firm,if its objective is maximum revenue?

Accepted Answer

The yields of these price points are as

Question 12

Among the mathematical approaches to aggregate planning,________ is good at working with inventories,holding costs,overtime,and subcontracting,but not with hiring and layoffs.

Accepted Answer

the transp

Question 13

One of the demand options of aggregate planning is to vary the workforce by hiring or layoffs.

Accepted Answer

A) True 
 B)False

Question 14

The level scheduling strategy allows lower inventories than the pure chase strategy.

Accepted Answer

A) True 
 B)False

Question 15

Byron's Manufacturing makes tables.Demand for the next four months and capacities of the plant are shown in the table below.Unit cost on regular time is $40.Overtime cost is 150% of regular time cost.Subcontracting is available in substantial quantity at $75 per unit.Holding costs are $5 per table per month;back orders cost the firm $10 per unit per month.Byron's management believes that the transportation algorithm can be used to optimize this scheduling problem.The firm has 50 units of beginning inventory and anticipates no ending inventory.
   a.How many units will be produced on regular time in June?
b.How many units will be produced by subcontracting over the four-month period?
c.What will be the inventory at the end of April?
d.What will be total production from all sources in April?
e.What will be the total cost of the optimum solution?
f.Does the firm utilize the expensive options of subcontracting and back ordering? When;why?

Accepted Answer

(a)400; (b)250; (c)0; (d)550; (e)Total C

Question 16

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)?

Accepted Answer

A) 100 
B) 125 
C) 150 
D) 50 
E) 175 
A) 100 
B) 125 
C) 150 
D) 50 
E) 175

Question 17

Which of the following would most likely fall under the scope of only an operations manager?

Accepted Answer

A) research and development 
B) new product plans 
C) capital investments 
D) facility location and expansion 
E) setting inventory levels 
A) research and development 
B) new product plans 
C) capital investments 
D) facility location and expansion 
E) setting inventory levels

Question 18

A hotel chain is considering using yield management to increase profits.Its plan is to sell unsold rooms at a discounted rate very close to the night of stay.For example,an unsold Friday night room would be discounted early in the week.It estimates that the percentage of sold rooms (total)would be equal to 50 + X,where X is the % discounted off of regular price.Meanwhile the % of rooms sold for full price compared to the discount would be 100 - 2X (some people would wait to book gambling a discount would happen).Find the ideal discount %.

Accepted Answer

Revenue is equal to demand ∗ (% sold at

Question 19

What is the typical planning horizon for aggregate planning?

Accepted Answer

The typical planning

Question 20

Which of the following statements about aggregate planning is false?

Accepted Answer

A) Hiring,layoffs,overtime,and subcontracting are methods of manipulating capacity. 
B) Aggregate planning produces a plan detailing which products are made and in what quantities. 
C) Yield management is a way of manipulating product or service demand. 
D) Aggregate planning uses the adjustable part of capacity to meet production requirements. 
E) The transportation method is an optimizing technique for aggregate planning. 
A) Hiring,layoffs,overtime,and subcontracting are methods of manipulating capacity. 
B) Aggregate planning produces a plan detailing which products are made and in what quantities. 
C) Yield management is a way of manipulating product or service demand. 
D) Aggregate planning uses the adjustable part of capacity to meet production requirements. 
E) The transportation method is an optimizing technique for aggregate planning.

Exam 13: Aggregate Planning

Identify (a)the demand options for aggregate planning;and (b)the capacity (supply)options for aggregate planning.

Which of the following aggregate planning strategies might direct your client to a competitor?

In aggregate planning,one of the adjustable elements of capacity is the extent of subcontracting.

Which of the following aggregate planning strategies is a "demand option"?

How does aggregate planning in services differ from aggregate planning in manufacturing?

Which of the following actions is consistent with the use of pure level strategy?

Which of the following aggregate planning strategies is known to lower employee morale?

Disaggregation is the process of breaking the aggregate plan into greater detail;one example of this detail is the Master Production Schedule.

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Which of the following production plans is better: Plan A-chase demand by hiring and layoffs;Plan B-pure level strategy,or Plan C-700 level with the remainder by subcontracting?

List,in order,the five steps of the graphical method of aggregate planning.Is it possible that these steps can be properly followed and the solution properly implemented without using a graph? Explain.

Among the mathematical approaches to aggregate planning,________ is good at working with inventories,holding costs,overtime,and subcontracting,but not with hiring and layoffs.

One of the demand options of aggregate planning is to vary the workforce by hiring or layoffs.

The level scheduling strategy allows lower inventories than the pure chase strategy.

Which of the following would most likely fall under the scope of only an operations manager?

What is the typical planning horizon for aggregate planning?

Which of the following statements about aggregate planning is false?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy and Sustainability

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply-Chain Management

Outsourcing As a Supply-Chain Strategy

Inventory Management

Material Requirements Planning Mrpand Erp

Short-Term Scheduling

Jit and Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

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