Question 1

Which of the following statements regarding aggregate planning is TRUE?

Accepted Answer

A) In a pure level strategy,production rates or work force levels are adjusted to match demand requirements over the planning horizon. 
B) A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies. 
C) Mixed strategies in aggregate planning may utilize inventory,work force,and production rate changes over the planning horizon. 
D) Because service firms have no inventory,the chase strategy does not apply. 
E) A disadvantage of the option of changing inventory levels is that it forces abrupt production changes. 
A) In a pure level strategy,production rates or work force levels are adjusted to match demand requirements over the planning horizon. 
B) A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies. 
C) Mixed strategies in aggregate planning may utilize inventory,work force,and production rate changes over the planning horizon. 
D) Because service firms have no inventory,the chase strategy does not apply. 
E) A disadvantage of the option of changing inventory levels is that it forces abrupt production changes.

Question 2

Fairview Industries is preparing its aggregate plan for the second half of the year.The table below contains monthly demand estimates and working days per month.Complete the table by computing total demand,demand per day (for each month),and the average requirement (in units per day)over the six-month planning horizon.Prepare a graph of forecast demand and level production,by months,for the planning period.Label your graph carefully.

Accepted Answer

The answer of Fairview Industries is preparing its aggregate plan...

Question 3

An electronics manufacturer makes video security systems for parking lots.Demand estimates for the next four quarters are 15,9,23,and 17 units.The company is preparing an aggregate plan that uses inventory,regular time,overtime,and back orders.Subcontracting is not allowed.Regular time capacity is 12 units for quarters 1 and 2,15 units for quarters 3 and 4.Overtime capacity is 6 units per quarter.Regular time cost is $20,000 per system,while overtime cost is $30,000 per unit.Back order cost is $2000 per system per quarter;inventory holding cost is $500 per unit per quarter.Beginning inventory is zero.
Complete the table of data inputs for solving this aggregate planning problem with the transportation method.Specifically,how many sources are there,and how many destinations? What is the supply from each source,and the demand of each destination? What is the cost of each source-destination pair?

Accepted Answer

There are eight sources: regular time an

Question 4

Advertising and promotion are methods of manipulating product or service supply in aggregate planning.

Accepted Answer

A) True 
 B)False

Question 5

What is a disadvantage common to the following two strategies: (1)varying inventory levels and (2)back ordering during periods of high demand?

Accepted Answer

Shortages or backord

Question 6

Which of these aggregate planning strategies is a capacity option?

Accepted Answer

A) back ordering 
B) using part-time workers 
C) counterseasonal product mixing 
D) changing price 
E) promotion 
A) back ordering 
B) using part-time workers 
C) counterseasonal product mixing 
D) changing price 
E) promotion

Question 7

Which of the following statements regarding aggregate planning in services is FALSE?

Accepted Answer

A) Approaches to aggregate planning differ by the type of service provided. 
B) Some service organizations conduct aggregate planning in exactly the same way as manufacturing firms,but with demand management taking a more active role. 
C) Aggregate planning in some service industries may be easier than in manufacturing. 
D) Labor is the primary aggregate planning vehicle. 
E) Level scheduling is far more common than using a chase strategy. 
A) Approaches to aggregate planning differ by the type of service provided. 
B) Some service organizations conduct aggregate planning in exactly the same way as manufacturing firms,but with demand management taking a more active role. 
C) Aggregate planning in some service industries may be easier than in manufacturing. 
D) Labor is the primary aggregate planning vehicle. 
E) Level scheduling is far more common than using a chase strategy.

Question 8

In aggregate planning,which one of the following is not a basic option for altering demand?

Accepted Answer

A) promotion 
B) subcontracting 
C) back ordering 
D) pricing 
E) personal selling 
A) promotion 
B) subcontracting 
C) back ordering 
D) pricing 
E) personal selling

Question 9

Houma Containers,Inc. ,makes industrial fiberglass tanks that are used on offshore oil platforms.Demand for the next four months and capacities of the plant are shown in the table below.Unit cost on regular time is $400.Overtime cost is 150% of regular time cost.Subcontracting is available in substantial quantity but at a very high cost,$1100 per unit.Holding costs are $200 per tank per month;back orders cost the firm $1000 per unit per month.Houma's management believes that the transportation algorithm can be used to optimize this scheduling problem.The firm has no beginning inventory and anticipates no ending inventory.
   Answer the following questions based on the data table and solution table shown below.
Houma Containers
   Houma Containers Solution
   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)250; (b)350; (c)0,and 50 units are ba

Question 10

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

Accepted Answer

(a)Demand options are: influencing deman

Question 11

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. )

Accepted Answer

The optimal plan appears in the table be

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

What are successful techniques of controlling the cost of labor involved in service firms?

Accepted Answer

1.accurate scheduling of labor-hours to

Question 14

A firm uses the chase strategy of aggregate planning.It produced 1000 units in the last period.Demand in the next period is estimated at 800,and demand over the next six periods (its aggregate planning horizon)is estimated to average 900 units.Which of the following tactics would be most representative of following a chase strategy?

Accepted Answer

A) add 100 units to inventory in the next period 
B) add 200 units to inventory in the next period 
C) hire workers to match the 100-unit difference 
D) lay off workers to match the 200-unit difference 
E) implement a lower price point to increase demand 
A) add 100 units to inventory in the next period 
B) add 200 units to inventory in the next period 
C) hire workers to match the 100-unit difference 
D) lay off workers to match the 200-unit difference 
E) implement a lower price point to increase demand

Question 15

Developing a mix of ________ products is a widely used demand smoothing technique.

Accepted Answer

The answer of Developing a mix of ________ products is...

Question 16

Washington Laundry Products,Inc. ,makes commercial and industrial laundry machines (the kinds hotels use),and has these aggregate demand requirements for the next six months.The firm has regular capacity for 200 units,and overtime capacity for 40 more.Currently,subcontracting can supply up to 100 units per month,but the subcontracting firm may soon be unavailable.
   Which is cheaper: to produce level,incurring back orders and inventory charges;or to produce a base quantity of 120,using first,overtime,then subcontracting,to meet demand?

Accepted Answer

The cost of the level strategy is $1,326

Question 17

The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.

Accepted Answer

A) True 
 B)False

Question 18

If a service firm were to attempt level scheduling for aggregate planning,should its level of output be at average demand,peak demand,or minimum demand?

Accepted Answer

This is a critical-thinking question for

Question 19

Revenue (or yield)management is best described as:

Accepted Answer

A) a situation where management yields to labor demands. 
B) a situation where the labor union yields to management demands. 
C) a process designed to increase the rate of output. 
D) allocation of scarce resources to customers at prices that will maximize revenue. 
E) management's selection of a product mix yielding maximum profits. 
A) a situation where management yields to labor demands. 
B) a situation where the labor union yields to management demands. 
C) a process designed to increase the rate of output. 
D) allocation of scarce resources to customers at prices that will maximize revenue. 
E) management's selection of a product mix yielding maximum profits.

Question 20

Which of the following aggregate planning options is NOT associated with manipulation of product or service demand?

Accepted Answer

A) price cuts or discounts 
B) promotion 
C) subcontracting 
D) counterseasonal products or services 
E) advertising 
A) price cuts or discounts 
B) promotion 
C) subcontracting 
D) counterseasonal products or services 
E) advertising

Exam 13: Aggregate Planning and Sop

Which of the following statements regarding aggregate planning is TRUE?

Advertising and promotion are methods of manipulating product or service supply in aggregate planning.

What is a disadvantage common to the following two strategies: (1)varying inventory levels and (2)back ordering during periods of high demand?

Which of these aggregate planning strategies is a capacity option?

Which of the following statements regarding aggregate planning in services is FALSE?

In aggregate planning,which one of the following is not a basic option for altering demand?

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

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

What are successful techniques of controlling the cost of labor involved in service firms?

Developing a mix of ________ products is a widely used demand smoothing technique.

The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.

If a service firm were to attempt level scheduling for aggregate planning,should its level of output be at average demand,peak demand,or minimum demand?

Revenue (or yield)management is best described as:

Which of the following aggregate planning options is NOT associated with manipulation of product or service demand?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Location Strategies

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply Chain Management

Inventory Management

Material Requirements Planning Mrpand ERP

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Capacity and Constraint Management

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

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