Question 1

In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

Accepted Answer

A) Inventory Levels and market demand 
B) Raw material availability and competitor's behavior 
C) Current workforce and economic conditions 
D) Current physical capacity and market demand 
E) Subcontractor capacity and inventory Levels 
A) Inventory Levels and market demand 
B) Raw material availability and competitor's behavior 
C) Current workforce and economic conditions 
D) Current physical capacity and market demand 
E) Subcontractor capacity and inventory Levels B

Question 2

Aggregate sales and operations planning occurs in a company about every 3 to 18 months.

Accepted Answer

A) True 
 B)False  False

Question 3

The aggregate operations planning variable "workforce Level" refers to the number of workers needed to accomplish the planned production.

Accepted Answer

A) True 
 B)False  True

Question 4

Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory Levels,order backlogs and allowing lost sales is which of the following production planning strategies?

Accepted Answer

A) Stable workforce,variable work hours 
B) Chase 
C) Level 
D) Full employment 
E) Skill maintenance 
A) Stable workforce,variable work hours 
B) Chase 
C) Level 
D) Full employment 
E) Skill maintenance

Question 5

In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

Accepted Answer

A) Competitors' behavior and economic conditions 
B) Market demand and inventory Levels 
C) Subcontractor capacity and current workforce 
D) Economic conditions and current physical capacity 
E) Raw material availability and inventory Levels 
A) Competitors' behavior and economic conditions 
B) Market demand and inventory Levels 
C) Subcontractor capacity and current workforce 
D) Economic conditions and current physical capacity 
E) Raw material availability and inventory Levels

Question 6

The master production schedule is a crucial input into the aggregate operations plan.

Accepted Answer

A) True 
 B)False

Question 7

An advantage of the Level strategy for aggregate operations planning is which of the following?

Accepted Answer

A) Purchased items from vendors can be delivered when and where needed 
B) High Level of scheduling allows for workers to have lots of overtime 
C) System can better accommodate unexpected large orders 
D) Financial requirements are minimized through lower finished goods inventory 
E) It is easier to apply linear programming or simulation 
A) Purchased items from vendors can be delivered when and where needed 
B) High Level of scheduling allows for workers to have lots of overtime 
C) System can better accommodate unexpected large orders 
D) Financial requirements are minimized through lower finished goods inventory 
E) It is easier to apply linear programming or simulation

Question 8

In services,once the aggregate staffing Level is determined,the focus is on short-term workforce and customer scheduling.

Accepted Answer

A) True 
 B)False

Question 9

The aggregate operations plan is developed from the master production schedule (MPS)and the rough-cut capacity plan.

Accepted Answer

A) True 
 B)False

Question 10

The transportation method of linear programming can incorporate which of the following factors when used in aggregate operations planning?

Accepted Answer

A) Multiproduct production 
B) Balanced scorecard criteria 
C) Minimize cost and maximize workforce utilization 
D) Variable demand responses to marketing campaigns 
E) Cash flow constraints 
A) Multiproduct production 
B) Balanced scorecard criteria 
C) Minimize cost and maximize workforce utilization 
D) Variable demand responses to marketing campaigns 
E) Cash flow constraints

Question 11

The main purpose of the aggregate production plan is to specify the optimal combination of production rate,workforce Level and inventory on hand.

Accepted Answer

A) True 
 B)False

Question 12

What are four advantages of Level production that make it the backbone of JIT production?

Accepted Answer

1.The entire system can be planned to mi

Question 13

From an operational perspective yield management is most effective under which of the following circumstances?

Accepted Answer

A) Demand cannot be segmented by customer 
B) Inventory is perishable 
C) Fixed costs are low and variable costs are high 
D) The customer is a "captive" of the system 
E) The firm doing yield management is very profitable 
A) Demand cannot be segmented by customer 
B) Inventory is perishable 
C) Fixed costs are low and variable costs are high 
D) The customer is a "captive" of the system 
E) The firm doing yield management is very profitable

Question 14

Yield management is an effective tool that can be used to shape demand patterns.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following costs are relevant to aggregate operations planning?

Accepted Answer

A) Sunk costs 
B) Transaction costs 
C) Backordering costs 
D) Legal costs 
E) Fixed costs 
A) Sunk costs 
B) Transaction costs 
C) Backordering costs 
D) Legal costs 
E) Fixed costs

Question 16

The sales and operations planning process consists of a series of meetings.

Accepted Answer

A) True 
 B)False

Question 17

The aggregate operations planning variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

Accepted Answer

A) True 
 B)False

Question 18

The sales and marketing plans are typically developed separately from the aggregate operations plan as a way of cross-checking results to insure the integrity of assumptions about the future.

Accepted Answer

A) True 
 B)False

Question 19

Capacity planning is the step in the aggregate operations planning process that immediately follows development of the master production schedule.

Accepted Answer

A) True 
 B)False

Question 20

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If the beginning inventory is 100 units,the demand forecast is 1,200 and the necessary safety stock is 20% of the demand forecast,which of the following is the production requirement?

Accepted Answer

A) 1,200 
B) 1,300 
C) 1,340 
D) 1,500 
E) 1,540 
A) 1,200 
B) 1,300 
C) 1,340 
D) 1,500 
E) 1,540

Exam 16: Aggregate Sales and Operations Planning

In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

Aggregate sales and operations planning occurs in a company about every 3 to 18 months.

The aggregate operations planning variable "workforce Level" refers to the number of workers needed to accomplish the planned production.

Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory Levels,order backlogs and allowing lost sales is which of the following production planning strategies?

In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?

The master production schedule is a crucial input into the aggregate operations plan.

An advantage of the Level strategy for aggregate operations planning is which of the following?

In services,once the aggregate staffing Level is determined,the focus is on short-term workforce and customer scheduling.

The aggregate operations plan is developed from the master production schedule (MPS)and the rough-cut capacity plan.

The transportation method of linear programming can incorporate which of the following factors when used in aggregate operations planning?

The main purpose of the aggregate production plan is to specify the optimal combination of production rate,workforce Level and inventory on hand.

What are four advantages of Level production that make it the backbone of JIT production?

From an operational perspective yield management is most effective under which of the following circumstances?

Yield management is an effective tool that can be used to shape demand patterns.

Which of the following costs are relevant to aggregate operations planning?

The sales and operations planning process consists of a series of meetings.

The aggregate operations planning variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.

The sales and marketing plans are typically developed separately from the aggregate operations plan as a way of cross-checking results to insure the integrity of assumptions about the future.

Capacity planning is the step in the aggregate operations planning process that immediately follows development of the master production schedule.

Introduction to the Field

Operations and Supply Strategy

Project Management

Product and Service Design

Strategic Capacity Management

Process Analysis

Manufacturing Processes

Service Processes

Six Sigma Quality

Supply-Chain Strategy

Logistics and Facility Location

Lean Manufacturing

Operations Consulting Reengineering

Enterprise Resource Planning Systems

Demand Management and Forecasting

Inventory Control

Material Requirements Planning

Scheduling

Constraint Management

Linear Programming Using the Excel Solver

Learning Curves

Job Design Work Measurement

Waiting Line Analysis

Process Capability and Spc

Simulation

Filters