Question 1

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 2

How does aggregate planning in services differ from aggregate planning in manufacturing?

Accepted Answer

Aggregate planning in services differs f

Question 3

The aggregate planning process usually includes expediting and dispatching of individual products.

Accepted Answer

A) True 
 B)False

Question 4

A firm's demand in the next four quarters (its aggregate planning horizon) is forecast to be 80, 50, 40, and 90 units. Last quarter, the firm produced 60 units. If it uses level scheduling, the firm will.

Accepted Answer

A)  hire workers to permit production of 65 units per quarter for the next four quarters 
B)  hire 20 workers 
C)  have an increase in inventory of 20 units in the next quarter 
D)  have a decrease in inventory of 5 units in the next quarter 
E)  change its workforce each quarter so that inventory does not change 
A)  hire workers to permit production of 65 units per quarter for the next four quarters 
B)  hire 20 workers 
C)  have an increase in inventory of 20 units in the next quarter 
D)  have a decrease in inventory of 5 units in the next quarter 
E)  change its workforce each quarter so that inventory does not change

Question 5

A hotel room that goes unrented, a dental appointment that no patient booked, and an airline seat that went unsold, are all examples of __________ in services inventory.

Accepted Answer

The answer of A hotel room that goes unrented, a...

Question 6

Which of the following statements regarding aggregate planning in services is False?

Accepted Answer

A)  When outputs are intangible, aggregate planning deals mainly with human resource requirements and managing demand. 
B)  Perishability of inventory is an important consideration of planning. 
C)  Aggregate planning in some service industries can be simpler than in manufacturing. 
D)  Labor is the primary aggregate planning vehicle. 
E)  Level scheduling is far more common than chase. 
A)  When outputs are intangible, aggregate planning deals mainly with human resource requirements and managing demand. 
B)  Perishability of inventory is an important consideration of planning. 
C)  Aggregate planning in some service industries can be simpler than in manufacturing. 
D)  Labor is the primary aggregate planning vehicle. 
E)  Level scheduling is far more common than chase.

Question 7

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 8

Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

__________ 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 11

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

Accepted Answer

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

Question 12

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 13

__________ is a complex aggregate planning technique, using models that may be difficult to build and for managers to understand.

Accepted Answer

The answer of __________ is a complex aggregate planning technique,...

Question 14

Which of the following would most likely fall under the scope of only an operations manager?

Accepted Answer

A)  research and development 
B)  new product plans 
C)  capital investments 
D)  facility location and expansion 
E)  setting inventory levels 
A)  research and development 
B)  new product plans 
C)  capital investments 
D)  facility location and expansion 
E)  setting inventory levels

Question 15

Identify (a) the demand options for aggregate planning; and (b) the capacity (supply) options for aggregate planning.

Accepted Answer

Demand options are: influencing demand (

Question 16

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

Question 17

Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The objective of aggregate planning is to meet demand while __________ over the planning period.

Accepted Answer

A)  minimizing cost 
B)  maximizing service level 
C)  minimizing stock out 
D)  minimizing fixed cost 
E)  all of the above 
A)  minimizing cost 
B)  maximizing service level 
C)  minimizing stock out 
D)  minimizing fixed cost 
E)  all of the above

Question 20

Yield management is most likely to be used in which one of the following situations?

Accepted Answer

A)  a fast food restaurant with wide demand fluctuations during the day 
B)  a dental clinic that wants to fill its appointment book 
C)  a firm with a good counterseasonal product mix 
D)  a shipping company that can change its fleet size easily 
E)  an airline attempting to fill "perishable" seats at maximum revenue 
A)  a fast food restaurant with wide demand fluctuations during the day 
B)  a dental clinic that wants to fill its appointment book 
C)  a firm with a good counterseasonal product mix 
D)  a shipping company that can change its fleet size easily 
E)  an airline attempting to fill "perishable" seats at maximum revenue

Exam 16: Aggregate Planning

Which of the following statements about aggregate planning is False?

How does aggregate planning in services differ from aggregate planning in manufacturing?

The aggregate planning process usually includes expediting and dispatching of individual products.

A firm's demand in the next four quarters (its aggregate planning horizon) is forecast to be 80, 50, 40, and 90 units. Last quarter, the firm produced 60 units. If it uses level scheduling, the firm will.

A hotel room that goes unrented, a dental appointment that no patient booked, and an airline seat that went unsold, are all examples of __________ in services inventory.

Which of the following statements regarding aggregate planning in services is False?

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

Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time.

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

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

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

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

__________ is a complex aggregate planning technique, using models that may be difficult to build and for managers to understand.

Which of the following would most likely fall under the scope of only an operations manager?

Identify (a) the demand options for aggregate planning; and (b) the capacity (supply) options for aggregate planning.

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

Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.

Which choice best describes level scheduling?

The objective of aggregate planning is to meet demand while __________ over the planning period.

Yield management is most likely to be used in which one of the following situations?

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Managing Quality

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