Question 1

The aggregate planning process usually includes dispatching of individual jobs.

Accepted Answer

A) True 
 B)False

Question 2

An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following?

Accepted Answer

A) production rates 
B) labor levels 
C) inventory levels 
D) overtime work 
E) facility capacity 
A) production rates 
B) labor levels 
C) inventory levels 
D) overtime work 
E) facility capacity

Question 3

A firm uses graphical techniques in its aggregate planning efforts.Over the next twelve months (its intermediate period),it estimates the sum of demands to be 105,000 units.The firm has 250 production days per year.In January,which has 22 production days,demand is estimated to be 11,000 units.A graph of demand versus level production will show that:

Accepted Answer

A) the January requirement is below level production of 420 units. 
B) level production is approximately 1000 units per day. 
C) level production of 420 units per day is below the January requirement. 
D) level production is approximately 420 units per month. 
E) the firm must hire workers between December and January. 
A) the January requirement is below level production of 420 units. 
B) level production is approximately 1000 units per day. 
C) level production of 420 units per day is below the January requirement. 
D) level production is approximately 420 units per month. 
E) the firm must hire workers between December and January.

Question 4

________ involves capacity decisions that determine the allocation of resources to maximize revenue or yield.

Accepted Answer

Revenue ma

Question 5

In the service sector,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 6

Which choice best describes level scheduling?

Accepted Answer

A) Daily production is variable from period to period. 
B) Subcontracting,hiring,and layoffs manipulate supply. 
C) Price points are calculated to match demand to capacity. 
D) Inventory goes up or down to buffer the difference between demand and production. 
E) Overtime is used to handle seasonal demand fluctuations. 
A) Daily production is variable from period to period. 
B) Subcontracting,hiring,and layoffs manipulate supply. 
C) Price points are calculated to match demand to capacity. 
D) Inventory goes up or down to buffer the difference between demand and production. 
E) Overtime is used to handle seasonal demand fluctuations.

Question 7

The ________ strategy sets production equal to forecasted demand.

Accepted Answer

The answer of The ________ strategy sets production equal to...

Question 8

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

Accepted Answer

A) smoothing the production rate and finding the optimal size of the workforce. 
B) capital investment decisions. 
C) centralized purchasing. 
D) centralized production. 
E) planning for human resource requirements and managing demand. 
A) smoothing the production rate and finding the optimal size of the workforce. 
B) capital investment decisions. 
C) centralized purchasing. 
D) centralized production. 
E) planning for human resource requirements and managing demand.

Question 9

Reddick's Specialty Electronics makes weatherproof surveillance systems for parking lots.Demand estimates for the next four quarters are 25,9,13,and 17 units.The firm is preparing an aggregate plan that uses inventory,regular time and overtime and back orders.Subcontracting is not allowed.Regular time capacity is 15 units for quarters 1 and 2,18 units for quarters 3 and 4.Overtime capacity is 3 units per quarter.Regular time cost is $2000 per unit,while overtime cost is $3000 per unit.Back order cost is $300 per unit per quarter;inventory holding cost is $100 per unit per quarter.Beginning inventory is zero.
The data inputs for this problem,and the optimal solution,generated by microcomputer software,appear below.Answer the following questions based on the scenario and the solution.
a.How many total units will be produced in quarter 1 for delivery in quarter 1?
b.How many units in total will be used to fill back orders over the four quarters?
c.What is the cost to produce one unit in Quarter 4 using overtime to deliver in quarter 1 (filling a back order)?
d.At the end of quarter 3,what is the ending inventory of finished systems?
e.What is the total cost of the solution?
f.What is the average cost per unit?
Reddick's Specialty Electronics
   Reddick's Specialty Electronics Solution

Accepted Answer

a.15;b.10;c.$3,900;d

Question 10

Golden Eagle Machine Works has the following demand requirements and other data for the upcoming four quarters.
   What is the total cost of pursuing a chase aggregate plan over the coming year?

Accepted Answer

For a chase strategy,quarterly

Question 11

A large consulting firm is deciding on if its workforce should be expanded,maintained,or decreased.Suppose that demand is given in week-long projects,and that a consultant can work on 3 projects each month (1 week off for personal leave and/or other duties such as conferences,etc).Currently there are 25 consultants.Ten consultants are trained for LEAN and 15 for Six Sigma,with 5 of those consultants being overlaps (the consultant is trained for BOTH LEAN and Six Sigma).Assume that all consultants can do the general work.Complete the table (the forecast period is an upcoming month)and prepare a recommendation.

Accepted Answer

@#IMG-DLM& NOTE: Student responses will vary but s

Question 12

A professional services firm is investigating revenue 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 13

Which of the following actions is consistent with the use of level scheduling?

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) none of the above 
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) none of the above

Question 14

Frito-Lay uses aggregate planning to match capacity with demand because of the ________ associated with its specialized processes.

Accepted Answer

A) high variable cost and high fixed cost 
B) high variable cost and low fixed cost 
C) low variable cost and high fixed cost 
D) low variable cost and low fixed cost 
E) none of the above 
A) high variable cost and high fixed cost 
B) high variable cost and low fixed cost 
C) low variable cost and high fixed cost 
D) low variable cost and low fixed cost 
E) none of the above

Question 15

Techniques for controlling the cost of labor in services include accurate scheduling of labor hours to assure quick response to customer demand,on-call labor for unexpected demand,flexibility of labor skills for reallocation of available labor,and flexibility in rate of output or hours of work to meet changing demand.

Accepted Answer

A) True 
 B)False

Question 16

________ for developing aggregate plans work with a few variables at a time and are easy to understand and use.

Accepted Answer

Graphical

Question 17

Compare the chase strategy versus level scheduling.

Accepted Answer

The chase strategy sets production equal

Question 18

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

Accepted Answer

The answer of ________ is the process of breaking the...

Question 19

Which of the following characteristics makes revenue management UNATTRACTIVE to organizations that have perishable inventory?

Accepted Answer

A) demand can be segmented 
B) service can be sold in advance of consumption 
C) capacity is easily changed 
D) variable costs are low and fixed costs are high 
E) demand fluctuates 
A) demand can be segmented 
B) service can be sold in advance of consumption 
C) capacity is easily changed 
D) variable costs are low and fixed costs are high 
E) demand fluctuates

Question 20

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) none of the above 
A) 100 
B) 125 
C) 150 
D) 50 
E) none of the above

Exam 13: Aggregate Planning and Sop

The aggregate planning process usually includes dispatching of individual jobs.

An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following?

________ involves capacity decisions that determine the allocation of resources to maximize revenue or yield.

In the service sector,which of the following aggregate planning strategies might direct your client to a competitor?

Which choice best describes level scheduling?

The ________ strategy sets production equal to forecasted demand.

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

Golden Eagle Machine Works has the following demand requirements and other data for the upcoming four quarters. What is the total cost of pursuing a chase aggregate plan over the coming year?

Which of the following actions is consistent with the use of level scheduling?

Frito-Lay uses aggregate planning to match capacity with demand because of the ________ associated with its specialized processes.

________ for developing aggregate plans work with a few variables at a time and are easy to understand and use.

Compare the chase strategy versus level scheduling.

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

Which of the following characteristics makes revenue management UNATTRACTIVE to organizations that have perishable inventory?

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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