Question 1

Which of the following would not be a strategy associated with adjusting aggregate capacity to meet expected demand?

Accepted Answer

A) Subcontract. 
B) Vary the size of the workforce. 
C) Schedule overtime. 
D) Allow inventory levels to vary. 
E) Use back orders.

Question 2

Contract workers are also known by this name

Accepted Answer

A) independent contractors, or "gig workers" 
B) dependent contractors, or "DWC" 
C) union workers, or "ACLU" 
D) temporary workers, or "temps" 
E) subcontractors, or "subs"

Question 3

A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What quantity is available for commitment to new customers in either of the first two periods?

Accepted Answer

A) 21 
B) 1 
C) 20 
D) 4 
E) impossible to say without more information

Question 4

Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate range of time.

Accepted Answer

A) True 
 B)False

Question 5

Disaggregating an aggregate plan leads to a master schedule.

Accepted Answer

A) True 
 B)False

Question 6

Aggregate planners are concerned with the quality and quantity of expected demand.

Accepted Answer

A) True 
 B)False

Question 7

One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is

Accepted Answer

A) inventory is cheaper to hold. 
B) labor availability is more predictable. 
C) inventory is less perishable. 
D) labor is more flexible. 
E) demand is less variable.

Question 8

Information for firm ABC

What is the expected inventory at the end of April 2008?

Accepted Answer

A) 350 
B) 250 
C) 150 
D) 50 
E) 80

Question 9

Which one of the following would not be considered a decision option for purposes of aggregate planning?

Accepted Answer

A) inventory levels 
B) manpower levels 
C) pricing 
D) production costs 
E) promotion

Question 10

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3.
What quantity is available for commitment to new customers prior to the receipt of the MPS quantity in week 3?

Accepted Answer

A) 14 
B) 32 
C) 12 
D) 20 
E) impossible to say without more information

Question 11

Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques.

Accepted Answer

A) True 
 B)False

Question 12

Information for firm ABC

What was the inventory at the end of March 2008?

Accepted Answer

A) 350 
B) 250 
C) 150 
D) 50 
E) 400

Question 13

The direct result of disaggregating the aggregate plan is the

Accepted Answer

A) marketing plan. 
B) production plan. 
C) rough-cut capacity plan. 
D) master schedule. 
E) material requirements plan.

Question 14

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is

Accepted Answer

A) beginning inventory. 
B) safety stock inventory. 
C) available-to-promise inventory. 
D) high-margin inventory. 
E) master production schedule arrivals.

Question 15

Which of the following are typically in play in a circumstance in which yield management is worthwhile?
(I)Perishable capacity(II)Ample finished goods storage(III)Demand variability(IV)Low holding costs

Accepted Answer

A) I, II, and IV only 
B) I and III only 
C) III only 
D) II and III only 
E) II, III, and IV only

Question 16

In practice, the more commonly used techniques for aggregate planning are

Accepted Answer

A) mathematical techniques. 
B) informal trial-and-error techniques. 
C) transportation models. 
D) simulation models. 
E) linear programming optimization.

Question 17

Essentially, the output of aggregate planning is the

Accepted Answer

A) marketing plan. 
B) production plan. 
C) rough-cut capacity plan. 
D) assignment plan. 
E) material requirements plan.

Question 18

In using the chase strategy, variations in demand could be met by

Accepted Answer

A) promotions. 
B) varying output during regular time by changing employment levels. 
C) varying inventory levels. 
D) using some combination of inventories, overtime, part-time, subcontracting, and back orders. 
E) price adjustments.

Question 19

Uncommitted inventory is called

Accepted Answer

A) available-to-promise inventory. 
B) free inventory. 
C) safety stock. 
D) lead time inventory. 
E) obsolete inventory.

Question 20

The assignment of work to specific machines and people are examples of aggregate planning.

Accepted Answer

A) True 
 B)False

Exam 11: Aggregate Planning and Master Scheduling

Which of the following would not be a strategy associated with adjusting aggregate capacity to meet expected demand?

Contract workers are also known by this name

Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate range of time.

Disaggregating an aggregate plan leads to a master schedule.

Aggregate planners are concerned with the quality and quantity of expected demand.

One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is

Information for firm ABC What is the expected inventory at the end of April 2008?

Which one of the following would not be considered a decision option for purposes of aggregate planning?

Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques.

Information for firm ABC What was the inventory at the end of March 2008?

The direct result of disaggregating the aggregate plan is the

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is

Which of the following are typically in play in a circumstance in which yield management is worthwhile? (I) Perishable capacity(II) Ample finished goods storage(III) Demand variability(IV) Low holding costs

In practice, the more commonly used techniques for aggregate planning are

Essentially, the output of aggregate planning is the

In using the chase strategy, variations in demand could be met by

Uncommitted inventory is called

The assignment of work to specific machines and people are examples of aggregate planning.