Exam 13: Aggregate Planning

The ________ strategy sets production equal to forecasted demand.

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

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

Eagle 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;or Plan B-produce at a constant rate of 1200 and obtain the remainder from overtime?

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)?

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

In level scheduling,what is kept uniform from month to month?

How does "yield management" impact the aggregate plan?

What is disaggregation?

A(n)________ is the result of the disaggregation of the aggregate plan.

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

Which of the following uses regression to incorporate historical managerial performance into aggregate planning?

The text states that trial-and-error methods continue to be widely used,in spite of the development of various models.Using your knowledge from earlier in this course or from other quantitative courses you might have taken,speculate on why managers continue to use "primitive" devices when such sophistication is available.

Which of the following aggregate planning methods does not work if hiring and layoffs are possible?

Why do some firms have longer planning horizons than others?

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

A train company is considering applying yield management principles to its ticket sales.Suppose that there is no variable cost in the operation,only a fixed cost to run each train.The company decides that a student ticket will sell for half the cost of a business ticket.If demand for the business tickets is given by 50 - 3x where x is the sales price of a business ticket and demand for student tickets is given by 70 - y^2 where y is the price of a student ticket how much should the company charge for tickets to maximize revenue?

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

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?

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