Question 1

Uncommitted inventory is called:

Accepted Answer

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

Question 2

One option for altering the availability of manufacturing capacity is:

Accepted Answer

A)  pricing. 
B)  promotion. 
C)  back orders. 
D)  inventories. 
E)  yield management. 
A)  pricing. 
B)  promotion. 
C)  back orders. 
D)  inventories. 
E)  yield management.

Question 3

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 regular time capacity?

Accepted Answer

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

Question 4

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 5

In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

Accepted Answer

A) True 
 B)False

Question 6

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

Accepted Answer

A) True 
 B)False

Question 7

Using dynamic pricing in response to capacity variability to ensure that perishable inventory is not wasted is known as:

Accepted Answer

A)  yield management. 
B)  profit minimization. 
C)  capacity loading. 
D)  demand optimization. 
E)  perishability avoidance. 
A)  yield management. 
B)  profit minimization. 
C)  capacity loading. 
D)  demand optimization. 
E)  perishability avoidance.

Question 8

The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Proactive and reactive aggregate planning strategies are best associated with:

Accepted Answer

A)  input and output. 
B)  make and buy. 
C)  quantitative and qualitative. 
D)  exact and approximate. 
E)  demand and capacity options. 
A)  input and output. 
B)  make and buy. 
C)  quantitative and qualitative. 
D)  exact and approximate. 
E)  demand and capacity options.

Question 11

Which of the following is not an input to the aggregate planning process?

Accepted Answer

A)  resources available 
B)  demand forecast 
C)  policies on workforce changes 
D)  master production schedules 
E)  cost information 
A)  resources available 
B)  demand forecast 
C)  policies on workforce changes 
D)  master production schedules 
E)  cost information

Question 12

Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and back orders. The plan must wind up with no units in ending inventory in period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is $30 per unit, back order cost is $20 per unit, inventory holding cost is $5 per unit, regular time cost is $20 per unit, and beginning inventory is zero. $$\begin{array} { l l } 
\text { Month } & \text { Forecast } \
\hline 1 & 180 \
2 & 170 \
3 & 140 \
4 & 150 \
5 & 130 \
6 & 150
\end{array}$$

Accepted Answer

The aggregate plan should look like this

Question 13

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 
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 14

Which of the following is not a basic option for altering the availability of capacity in a service environment?

Accepted Answer

A)  overtime 
B)  hiring/layoff 
C)  part time 
D)  inventory 
E)  All of the choices are options. 
A)  overtime 
B)  hiring/layoff 
C)  part time 
D)  inventory 
E)  All of the choices are options.

Question 15

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

Accepted Answer

A)  customer 
B)  staff 
C)  inventory 
D)  subcontracting 
E)  outsourcing 
A)  customer 
B)  staff 
C)  inventory 
D)  subcontracting 
E)  outsourcing

Question 16

In order to use the level capacity strategy, variations in demand are met by:

Accepted Answer

A)  varying output during regular time without changing employment levels. 
B)  varying output during regular time by changing employment levels. 
C)  varying output by changing overtime levels. 
D)  using combination of inventories, overtime, part time, and back orders. 
E)  price adjustments. 
A)  varying output during regular time without changing employment levels. 
B)  varying output during regular time by changing employment levels. 
C)  varying output by changing overtime levels. 
D)  using combination of inventories, overtime, part time, and back orders. 
E)  price adjustments.

Question 17

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

Accepted Answer

A) True 
 B)False

Question 18

Linear programming to produce an aggregate plan:

Accepted Answer

A)  will produce the best plan if accurate inputs are used. 
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 an Excel spreadsheet. 
A)  will produce the best plan if accurate inputs are used. 
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 an Excel spreadsheet.

Question 19

Subcontracting "in" would apply to periods in which our organization has excess capacity.

Accepted Answer

A) True 
 B)False

Question 20

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 overtime costs?

Accepted Answer

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

Exam 11: Aggregate Planning and Master Scheduling

Uncommitted inventory is called:

One option for altering the availability of manufacturing capacity is:

Which of the following is most closely associated with disaggregation?

In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

Using dynamic pricing in response to capacity variability to ensure that perishable inventory is not wasted is known as:

The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

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

Proactive and reactive aggregate planning strategies are best associated with:

Which of the following is not an input to the aggregate planning process?

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

Which of the following is not a basic option for altering the availability of capacity in a service environment?

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

In order to use the level capacity strategy, variations in demand are met by:

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

Linear programming to produce an aggregate plan:

Subcontracting "in" would apply to periods in which our organization has excess capacity.

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