Question 1

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Accepted Answer

A) True 
 B)False  True

Question 2

Osprey 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-1350 level with the remainder by subcontracting?

Accepted Answer

Plan A will cost $215,000,Plan B will cost $179,500,and Plan C will cost $183,500.Plan B is the cheapest,by a small margin.
Plan A
Osprey Fabrication Solution
   Plan B
Osprey Fabrication Solution
   Plan C
Osprey Fabrication Solution

Question 3

Normally,the transportation model is used to solve problems involving several physical sources of product and several physical uses of the product,as in factories and warehouses.How is it possible to use the transportation model where the "routes" are from one time period to another? Describe how this provides aggregate planners with a usable mathematical model.

Accepted Answer

Time travel is not involved."From" regular time March "To" demand May simply describes when production took place to provide the units sold in May."From" April production "To" March demand simply describes back orders - demand in one month is met by production in a later period.The algorithm is optimizing - it minimizes cost over the planning period;the algorithm balances supply and demand by combinations of capacity options and demand options.

Question 4

Which of the following statements about aggregate planning is true?

Accepted Answer

A) The development of mathematical models has allowed aggregate planners to discontinue use of trial-and-error methods. 
B) In aggregate planning,back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand. 
C) A pure chase strategy allows lower inventories when compared to pure level scheduling. 
D) Disaggregation turns the master production schedule into an intermediate term master plan. 
E) Disaggregation results in the material purchasing system. 
A) The development of mathematical models has allowed aggregate planners to discontinue use of trial-and-error methods. 
B) In aggregate planning,back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand. 
C) A pure chase strategy allows lower inventories when compared to pure level scheduling. 
D) Disaggregation turns the master production schedule into an intermediate term master plan. 
E) Disaggregation results in the material purchasing system.

Question 5

Which of these is among the demand options of aggregate planning?

Accepted Answer

A) subcontracting 
B) back-ordering during high-demand periods 
C) changing inventory levels 
D) varying workforce size 
E) varying production rates 
A) subcontracting 
B) back-ordering during high-demand periods 
C) changing inventory levels 
D) varying workforce size 
E) varying production rates

Question 6

The planning tasks associated with staffing,production,inventory,and sub-contracting levels typically fall under

Accepted Answer

A) short-range plans. 
B) intermediate-range plans. 
C) long-range plans. 
D) demand options. 
E) strategic planning. 
A) short-range plans. 
B) intermediate-range plans. 
C) long-range plans. 
D) demand options. 
E) strategic planning.

Question 7

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

Accepted Answer

Requirements total 9400 units,

Question 8

One question that operations managers must ask when generating an aggregate plan is what factors are likely to influence demand and by how much.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not an advantage of level scheduling?

Accepted Answer

A) stable employment 
B) lower absenteeism 
C) matching production exactly with sales 
D) lower turnover 
E) more employee commitment 
A) stable employment 
B) lower absenteeism 
C) matching production exactly with sales 
D) lower turnover 
E) more employee commitment

Question 11

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?

Accepted Answer

The student must consider that since 900

Question 12

What directly results from disaggregation of an aggregate plan?

Accepted Answer

A) a master production schedule 
B) priority scheduling 
C) a transportation matrix 
D) a capacity-demand matrix 
E) detailed work schedules 
A) a master production schedule 
B) priority scheduling 
C) a transportation matrix 
D) a capacity-demand matrix 
E) detailed work schedules

Question 13

"Yield management" is best described as

Accepted Answer

A) a situation where management yields to labour demands. 
B) a situation where the labour union yields to management demands. 
C) a process designed to increase the rate of output. 
D) capacity allocation to different classes of customers in order to maximize profits. 
E) management's selection of a product mix yielding maximum profits. 
A) a situation where management yields to labour demands. 
B) a situation where the labour union yields to management demands. 
C) a process designed to increase the rate of output. 
D) capacity allocation to different classes of customers in order to maximize profits. 
E) management's selection of a product mix yielding maximum profits.

Question 14

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

Accepted Answer

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

Question 15

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 16

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

Accepted Answer

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

Question 17

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 workforce 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 workforce to meet demand requirements 
E) use statistical sampling to meet average demand requirements

Question 18

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

Accepted Answer

A) influencing demand by changing price 
B) counterseasonal product mixing 
C) influencing demand by extending lead times 
D) changing inventory levels 
E) influencing demand by back ordering 
A) influencing demand by changing price 
B) counterseasonal product mixing 
C) influencing demand by extending lead times 
D) changing inventory levels 
E) influencing demand by back ordering

Question 19

________ work with a few variables at a time and are easy to understand and use.

Accepted Answer

The answer of ________ work with a few variables at...

Question 20

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

Exam 13: Aggregate Planning

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Osprey 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-1350 level with the remainder by subcontracting?

Which of the following statements about aggregate planning is true?

Which of these is among the demand options of aggregate planning?

The planning tasks associated with staffing,production,inventory,and sub-contracting levels typically fall under

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

One question that operations managers must ask when generating an aggregate plan is what factors are likely to influence demand and by how much.

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

Which of the following is not an advantage of level scheduling?

What directly results from disaggregation of an aggregate plan?

"Yield management" is best described as

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

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

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

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

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

________ work with a few variables at a time and are easy to understand and use.

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