Question 1

An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low.

Accepted Answer

A) True 
 B)False

Question 2

Accommodating peak demand and effectively using labor resources during periods of low demand would be the main goals of aggregate planners in:

Accepted Answer

A)  manufacturing. 
B)  military. 
C)  archeology. 
D)  libraries. 
E)  financial services. 
A)  manufacturing. 
B)  military. 
C)  archeology. 
D)  libraries. 
E)  financial services.

Question 3

One option for altering the pattern of demand is:

Accepted Answer

A)  pricing differentials 
B)  overtime. 
C)  part-time workers. 
D)  inventories. 
E)  subcontracting. 
A)  pricing differentials 
B)  overtime. 
C)  part-time workers. 
D)  inventories. 
E)  subcontracting.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Aggregate planners commonly use trial-and-error methods in developing aggregate plans.

Accepted Answer

A) True 
 B)False

Question 6

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 7

A time fence in the master schedule is used to prevent changes to the schedule within the frozen section.

Accepted Answer

A) True 
 B)False

Question 8

One area in which aggregate planning decisions are made is:

Accepted Answer

A)  job sequencing 
B)  customer order quantities 
C)  inventory levels 
D)  location 
E)  layout 
A)  job sequencing 
B)  customer order quantities 
C)  inventory levels 
D)  location 
E)  layout

Question 9

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

Question 10

Disaggregating an aggregate plan leads to a master schedule.

Accepted Answer

A) True 
 B)False

Question 11

In doing aggregate planning for a firm producing paint, the aggregate planners would most likely deal with:

Accepted Answer

A)  just gallons of paint, without concern for the different colors and sizes. 
B)  gallons of paint, but be concerned with the different colors to be produced. 
C)  gallons, quarts, pints, and all the different sizes to be produced. 
D)  all the different sizes and all the different colors by size. 
E)  all of the different colors targeted for different markets. 
A)  just gallons of paint, without concern for the different colors and sizes. 
B)  gallons of paint, but be concerned with the different colors to be produced. 
C)  gallons, quarts, pints, and all the different sizes to be produced. 
D)  all the different sizes and all the different colors by size. 
E)  all of the different colors targeted for different markets.

Question 12

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 is the projected on-hand inventory at the end of period 2?

Accepted Answer

A)  21 
B)  1 
C)  12 
D)  20 
E)  impossible to say without more information 
A)  21 
B)  1 
C)  12 
D)  20 
E)  impossible to say without more information

Question 13

Which of the following differs between aggregate planning in services and aggregate planning in manufacturing?

Accepted Answer

A)  uncertainty in demand 
B)  costs of storing inventory 
C)  the perishability of capacity 
D)  cost of overtime 
E)  cost of hiring 
A)  uncertainty in demand 
B)  costs of storing inventory 
C)  the perishability of capacity 
D)  cost of overtime 
E)  cost of hiring

Question 14

When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.

Accepted Answer

A)  layoffs 
B)  back orders 
C)  excess capacity 
D)  disaggregation 
E)  minimal inventory 
A)  layoffs 
B)  back orders 
C)  excess capacity 
D)  disaggregation 
E)  minimal inventory

Question 15

Moving from the aggregate plan to a master production schedule requires:

Accepted Answer

A)  rough-cut capacity planning. 
B)  disaggregation. 
C)  suboptimization. 
D)  strategy formulation. 
E)  chase strategies. 
A)  rough-cut capacity planning. 
B)  disaggregation. 
C)  suboptimization. 
D)  strategy formulation. 
E)  chase strategies.

Question 16

Which one of the following is not a basic option for altering demand?

Accepted Answer

A)  promotion 
B)  backordering 
C)  pricing 
D)  subcontracting 
E)  All are demand options. 
A)  promotion 
B)  backordering 
C)  pricing 
D)  subcontracting 
E)  All are demand options.

Question 17

The goal of aggregate planning is to achieve a production plan that effectively utilizes the organization's resources to meet expected demand.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is most closely associated with disaggregation?

Accepted Answer

A)  subcontracting 
B)  master schedule 
C)  diversity 
D)  varying inventory levels 
E)  firing and laying off 
A)  subcontracting 
B)  master schedule 
C)  diversity 
D)  varying inventory levels 
E)  firing and laying off

Question 19

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

Question 20

At XYZ Corp., the master schedule reflects the fact that 50 percent of its output is product version A, 30 percent is version B, and 20 percent is version C. Suppose that over the coming year planned aggregate production is for 10,400 units. Once the production plan is disaggregated evenly throughout the year, what will the weekly production for version A be (assume 52 weeks per year)?

Accepted Answer

A)  1,000 
B)  200 
C)  400 
D)  100 
E)  50 
A)  1,000 
B)  200 
C)  400 
D)  100 
E)  50

Exam 16: Aggregate Planning and Master Scheduling

An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low.

Accommodating peak demand and effectively using labor resources during periods of low demand would be the main goals of aggregate planners in:

One option for altering the pattern of demand is:

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

Aggregate planners commonly use trial-and-error methods in developing aggregate plans.

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

A time fence in the master schedule is used to prevent changes to the schedule within the frozen section.

One area in which aggregate planning decisions are made is:

Disaggregating an aggregate plan leads to a master schedule.

In doing aggregate planning for a firm producing paint, the aggregate planners would most likely deal with:

Which of the following differs between aggregate planning in services and aggregate planning in manufacturing?

When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.

Moving from the aggregate plan to a master production schedule requires:

Which one of the following is not a basic option for altering demand?

The goal of aggregate planning is to achieve a production plan that effectively utilizes the organization's resources to meet expected demand.

Which of the following is most closely associated with disaggregation?

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

Introduction to Operations Management

Competitiveness

Forecasting

Product and Service Design

RELIABILITY – Static

Strategic Capacity Planning for Products and Services

Decision Theory– Static

Process Selection and Facility Layout

Work Design and Measurement

learning curve– Static

Location Planning and Analysis

The Transportation Model– Static

Management of Quality

Quality Control

Acceptance Sampling– Static

MRP and ERP

Inventory Management

JIT and Lean Operations

Maintenance– Static

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters