Question 1

The output from aggregate planning is a detailed business plan covering the next 2 to 12 months.

Accepted Answer

A) True 
 B)False  False

Question 2

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. A

Question 3

One area to which aggregate planning decisions relate 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 C

Question 4

Simulation to produce an aggregate plan:

Accepted Answer

A)  will produce the best plan. 
B)  is the most widely used technique. 
C)  is easy to implement. 
D)  will produce a plan that may not be the best plan. 
E)  requires a minimum of four iterations to be accurate. 
A)  will produce the best plan. 
B)  is the most widely used technique. 
C)  is easy to implement. 
D)  will produce a plan that may not be the best plan. 
E)  requires a minimum of four iterations to be accurate.

Question 5

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

Question 6

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 7

Consider the following information: $$\begin{array} { l l l } 
\text { Period } & \text { Forecast } \
\hline   1 & 200 & \
2 & 200 & \
3 & 300 & \
4 & 400 & \
5 & 500 & \
6 & 200 & \
\text { Regular Time: } & \$ 20 \text { per unit ( } 280 \text { units per period maximum) } \
\text { Overtime: } & \$ 30 \text { per unit (40 units per period maximum) } \
\text { Subcontracting: } & \text { None available } \
\text { Beginning Inventory: } & \text { None } \
\text { Carrying Cost: } & \$ 1 \text { per unit per period } \
\text { Backorder Cost: } & \$ 5 \text { per unit per period }
\end{array}$$ How should overtime capacity be utilized?

Accepted Answer

40 units e

Question 8

Which of the following is an input to aggregate planning?

Accepted Answer

A)  ending inventory 
B)  demand forecasts for each period 
C)  customer levels 
D)  setup costs 
E)  quantity discounts 
A)  ending inventory 
B)  demand forecasts for each period 
C)  customer levels 
D)  setup costs 
E)  quantity discounts

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Question 11

Consider the following information: $$\begin{array} { l l l } 
\text { Period } & \text { Forecast } \
\hline   1 & 200 & \
2 & 200 & \
3 & 300 & \
4 & 400 & \
5 & 500 & \
6 & 200 & \
\text { Regular Time: } & \$ 20 \text { per unit ( } 280 \text { units per period maximum) } \
\text { Overtime: } & \$ 30 \text { per unit (40 units per period maximum) } \
\text { Subcontracting: } & \text { None available } \
\text { Beginning Inventory: } & \text { None } \
\text { Carrying Cost: } & \$ 1 \text { per unit per period } \
\text { Backorder Cost: } & \$ 5 \text { per unit per period }
\end{array}$$ What are total carrying costs?

Accepted Answer

The answer of Consider the following information: \[\begin{array} { l...

Question 12

Consider the following information: $$\begin{array} { l l l } 
\text { Period } & \text { Forecast } \
\hline   1 & 200 & \
2 & 200 & \
3 & 300 & \
4 & 400 & \
5 & 500 & \
6 & 200 & \
\text { Regular Time: } & \$ 20 \text { per unit ( } 280 \text { units per period maximum) } \
\text { Overtime: } & \$ 30 \text { per unit (40 units per period maximum) } \
\text { Subcontracting: } & \text { None available } \
\text { Beginning Inventory: } & \text { None } \
\text { Carrying Cost: } & \$ 1 \text { per unit per period } \
\text { Backorder Cost: } & \$ 5 \text { per unit per period }
\end{array}$$ What is total forecasted demand?

Accepted Answer

The answer of Consider the following information: \[\begin{array} { l...

Question 13

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 14

Aggregate planners attempt to balance:

Accepted Answer

A)  demand and inventories. 
B)  demand and costs. 
C)  capacity and inventories. 
D)  capacity and costs. 
E)  capacity and demand. 
A)  demand and inventories. 
B)  demand and costs. 
C)  capacity and inventories. 
D)  capacity and costs. 
E)  capacity and demand.

Question 15

Aggregate planners seek to match supply and demand:

Accepted Answer

A)  at minimum overall cost. 
B)  by changing company policy. 
C)  by minimizing layoffs. 
D)  keeping inventories at a minimum. 
E)  by minimizing hires. 
A)  at minimum overall cost. 
B)  by changing company policy. 
C)  by minimizing layoffs. 
D)  keeping inventories at a minimum. 
E)  by minimizing hires.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Departmental budgeting is an example of aggregate planning.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

Capacity can be modified in aggregate planning by promotion and producing additional product using overtime.

Accepted Answer

A) True 
 B)False

The output from aggregate planning is a detailed business plan covering the next 2 to 12 months.

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

One area to which aggregate planning decisions relate is:

Simulation to produce an aggregate plan:

What quantity is available for commitment to new customers in either of the first two periods?

Which of the following is an input to aggregate planning?

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

Aggregate planning is capacity planning for:

Aggregate planners attempt to balance:

Aggregate planners seek to match supply and demand:

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

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

Departmental budgeting is an example of aggregate planning.

The direct result of disaggregating the aggregate plan is the:

Capacity can be modified in aggregate planning by promotion and producing additional product using overtime.

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Extension: Reliability

Strategic Capacity Planning for Products and Services

Extension: Decision Theory

Process Selection and Facility Layout

Work Design and Measurement

Extension: Learning Curves

Location Planning and Analysis

Extension: The Transportation Model

Management of Quality

Quality Control

Extension: Acceptance Sampling

MRP and ERP

Inventory Management

Jit and Lean Operations

Extension: Maintenance

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters

Exam 11: Aggregate Planning and Master Scheduling

The output from aggregate planning is a detailed business plan covering the next 2 to 12 months.

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

One area to which aggregate planning decisions relate is:

Simulation to produce an aggregate plan:

What quantity is available for commitment to new customers in either of the first two periods?

Which of the following is an input to aggregate planning?

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

Aggregate planning is capacity planning for:

Aggregate planners attempt to balance:

Aggregate planners seek to match supply and demand:

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

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

Departmental budgeting is an example of aggregate planning.

The direct result of disaggregating the aggregate plan is the:

Capacity can be modified in aggregate planning by promotion and producing additional product using overtime.

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Extension: Reliability

Strategic Capacity Planning for Products and Services

Extension: Decision Theory

Process Selection and Facility Layout

Work Design and Measurement

Extension: Learning Curves

Location Planning and Analysis

Extension: The Transportation Model

Management of Quality

Quality Control

Extension: Acceptance Sampling

MRP and ERP

Inventory Management

Jit and Lean Operations

Extension: Maintenance

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters