Question 1

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) Seasonal demand fluctuations are matched without hirings or layoffs. 
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) Seasonal demand fluctuations are matched without hirings or layoffs.

Question 2

________ involves capacity decisions that determine the allocation of classes of resources in order to maximize profit or yield.

Accepted Answer

The answer of ________ involves capacity decisions that determine the...

Question 3

A firm uses the pure 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.In following the chase strategy,the firm will

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 4

Describe the advantages and limitations of the graphical method of aggregate planning.

Accepted Answer

Advantages include that it is easy to un

Question 5

What four things are needed to develop an aggregate plan?

Accepted Answer

To develop an aggregate plan,you need a

Question 6

Planning tasks associated with loading,sequencing,expediting,and dispatching typically fall under

Accepted Answer

A) short-range plans. 
B) intermediate-range plans. 
C) long-range plans. 
D) mission-related planning. 
E) strategic planning. 
A) short-range plans. 
B) intermediate-range plans. 
C) long-range plans. 
D) mission-related planning. 
E) strategic planning.

Question 7

A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.

Accepted Answer

A) True 
 B)False

Question 8

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.

Question 9

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

Accepted Answer

Varying inventory levels and b

Question 10

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 workforce 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 workforce size by hiring or layoffs

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

The typical time horizon for aggregate planning is

Accepted Answer

A) less than a month. 
B) up to 3 months. 
C) 3 to 18 months. 
D) over one year. 
E) over 5 years. 
A) less than a month. 
B) up to 3 months. 
C) 3 to 18 months. 
D) over one year. 
E) over 5 years.

Question 13

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

Accepted Answer

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

Question 14

________ is an approach to determine the quantity and timing of production for the intermediate future.

Accepted Answer

The answer of ________ is an approach to determine the...

Question 15

Aggregate planning is capacity planning for

Accepted Answer

A) the long range. 
B) the intermediate range. 
C) the short range. 
D) typically one to three months. 
E) typically three or more years. 
A) the long range. 
B) the intermediate range. 
C) the short range. 
D) typically one to three months. 
E) typically three or more years.

Question 16

The only objective of aggregate planning is to minimize the cost of matching capacity to demand over the planning period.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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.Prepare 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?

Accepted Answer

@#IMG-DLM& a.15;b.10;c.$3,900;

Question 19

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 20

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

Exam 13: Aggregate Planning

Which choice best describes level scheduling?

________ involves capacity decisions that determine the allocation of classes of resources in order to maximize profit or yield.

A firm uses the pure 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.In following the chase strategy,the firm will

Describe the advantages and limitations of the graphical method of aggregate planning.

What four things are needed to develop an aggregate plan?

Planning tasks associated with loading,sequencing,expediting,and dispatching typically fall under

A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.

Which of the following statements about aggregate planning is false?

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

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

The typical time horizon for aggregate planning is

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

________ is an approach to determine the quantity and timing of production for the intermediate future.

Aggregate planning is capacity planning for

The only objective of aggregate planning is to minimize the cost of matching capacity to demand over the planning period.

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.

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

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

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