Question 1

The quality of the aggregate plan can be improved by using information from

Accepted Answer

A) only the local firm. 
B) only downstream partners. 
C) only upstream partners. 
D) all parts of the supply chain. 
A) only the local firm. 
B) only downstream partners. 
C) only upstream partners. 
D) all parts of the supply chain.

Question 2

Aggregate planning,to be effective,requires inputs from

Accepted Answer

A) all customers. 
B) all departments. 
C) all suppliers. 
D) throughout the supply chain. 
A) all customers. 
B) all departments. 
C) all suppliers. 
D) throughout the supply chain.

Question 3

Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.

Accepted Answer

A) True 
 B)False

Question 4

Breaking an aggregate plan into separate plans for each product creates a master production schedule.

Accepted Answer

A) True 
 B)False

Question 5

The goal of aggregate planning is to build a plan that satisfies demand while minimizing downtime.

Accepted Answer

A) True 
 B)False

Question 6

As a general rule,advanced planning systems rely on

Accepted Answer

A) game theory. 
B) simulation. 
C) nonlinear programming. 
D) linear approximations of nonlinear functions. 
A) game theory. 
B) simulation. 
C) nonlinear programming. 
D) linear approximations of nonlinear functions.

Question 7

Scenario 8.3 - Mousetraps
A company faces the aggregate planning problem shown in the table below.Cost of regular production is $15 per unit,the cost of producing the same unit on overtime is $22.50,the cost of subcontracting is $27 per unit,and the cost of carrying a unit in inventory from one month to the next is $10.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { July } & \text { August } & \text { September } & \text { October } & \text { November } \
\hline \text { Forecast } & 800 & 650 & 450 & 550 & 900 \
\hline \text { Beginning Inventory } & 140 & & & & \
\hline \text { Regular Time } & & & & & \
\hline \text { Overtime } & & & & & \
\hline \text { Subcontracting } & & & & & \
\hline \text { Ending Inventory } & & & & & \
\hline
\end{array}$$ The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 units in any five-month window.The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week.By policy,management wants to avoid stockouts.
-What is the optimal total cost of the aggregate plan developed to address Scenario 8.3?

Accepted Answer

A) $47,200 
B) $49,960 
C) $50,400 
D) $51,325 
A) $47,200 
B) $49,960 
C) $50,400 
D) $51,325

Question 8

Capacity used to satisfy demand that is higher than forecasted is

Accepted Answer

A) safety backlog. 
B) safety capacity. 
C) safety inventory. 
D) safety sales. 
A) safety backlog. 
B) safety capacity. 
C) safety inventory. 
D) safety sales.

Question 9

To create an aggregate plan,a company must specify the planning horizon for the plan and the duration of each period within the planning horizon.

Accepted Answer

A) True 
 B)False

Question 10

The strategy where the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off employees as the demand rate varies is the

Accepted Answer

A) adjustable strategy. 
B) chase strategy. 
C) level strategy. 
D) mixed strategy. 
A) adjustable strategy. 
B) chase strategy. 
C) level strategy. 
D) mixed strategy.

Question 11

Forecasting errors are dealt with in aggregate plans using either safety backlog or safety capacity.

Accepted Answer

A) True 
 B)False

Question 12

The aggregate planner must make a trade-off between capacity,inventory,and backlog costs.

Accepted Answer

A) True 
 B)False

Question 13

A poor aggregate plan may result in a large amount of excess inventory and capacity,thereby raising costs.

Accepted Answer

A) True 
 B)False

Question 14

The success of advanced planning systems is highly dependent on

Accepted Answer

A) access to the cloud. 
B) operating system. 
C) data quality. 
D) power structure. 
A) access to the cloud. 
B) operating system. 
C) data quality. 
D) power structure.

Question 15

Aggregate planning is concerned with determining

Accepted Answer

A) the production level,sales level,and capacity for each period. 
B) the demand level,inventory level,and capacity for each period. 
C) the production level,inventory level,and capacity for each period. 
D) the production level,forecast errors,and capacity for each period. 
A) the production level,sales level,and capacity for each period. 
B) the demand level,inventory level,and capacity for each period. 
C) the production level,inventory level,and capacity for each period. 
D) the production level,forecast errors,and capacity for each period.

Question 16

A chase strategy for aggregate planning synchronizes production rate with the demand rate.

Accepted Answer

A) True 
 B)False

Question 17

Scenario 8.3 - Mousetraps
A company faces the aggregate planning problem shown in the table below.Cost of regular production is $15 per unit,the cost of producing the same unit on overtime is $22.50,the cost of subcontracting is $27 per unit,and the cost of carrying a unit in inventory from one month to the next is $10.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { July } & \text { August } & \text { September } & \text { October } & \text { November } \
\hline \text { Forecast } & 800 & 650 & 450 & 550 & 900 \
\hline \text { Beginning Inventory } & 140 & & & & \
\hline \text { Regular Time } & & & & & \
\hline \text { Overtime } & & & & & \
\hline \text { Subcontracting } & & & & & \
\hline \text { Ending Inventory } & & & & & \
\hline
\end{array}$$ The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 units in any five-month window.The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week.By policy,management wants to avoid stockouts.
-Which is the first month that overtime is used for the optimal aggregate plan for Scenario 8.3?

Accepted Answer

A) July 
B) August 
C) September 
D) October 
A) July 
B) August 
C) September 
D) October

Question 18

The quality of the forecast can be improved by using information from

Accepted Answer

A) the focal firm. 
B) downstream partners. 
C) upstream partners. 
D) competing supply chains. 
A) the focal firm. 
B) downstream partners. 
C) upstream partners. 
D) competing supply chains.

Question 19

Scenario 8.3 - Mousetraps
A company faces the aggregate planning problem shown in the table below.Cost of regular production is $15 per unit,the cost of producing the same unit on overtime is $22.50,the cost of subcontracting is $27 per unit,and the cost of carrying a unit in inventory from one month to the next is $10.
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { July } & \text { August } & \text { September } & \text { October } & \text { November } \
\hline \text { Forecast } & 800 & 650 & 450 & 550 & 900 \
\hline \text { Beginning Inventory } & 140 & & & & \
\hline \text { Regular Time } & & & & & \
\hline \text { Overtime } & & & & & \
\hline \text { Subcontracting } & & & & & \
\hline \text { Ending Inventory } & & & & & \
\hline
\end{array}$$ The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 units in any five-month window.The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week.By policy,management wants to avoid stockouts.
-How many units are produced using subcontracting in the optimal aggregate plan developed to address Scenario 8.3?

Accepted Answer

A) 200 
B) 50 
C) 100 
D) 150 
A) 200 
B) 50 
C) 100 
D) 150

Question 20

A linear programming formulation of an aggregate plan would typically have a different decision variable for per unit material cost and labor's hourly wage.

Accepted Answer

A) True 
 B)False

The quality of the aggregate plan can be improved by using information from

Aggregate planning,to be effective,requires inputs from

Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.

Breaking an aggregate plan into separate plans for each product creates a master production schedule.

The goal of aggregate planning is to build a plan that satisfies demand while minimizing downtime.

As a general rule,advanced planning systems rely on

Capacity used to satisfy demand that is higher than forecasted is

To create an aggregate plan,a company must specify the planning horizon for the plan and the duration of each period within the planning horizon.

The strategy where the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off employees as the demand rate varies is the

Forecasting errors are dealt with in aggregate plans using either safety backlog or safety capacity.

The aggregate planner must make a trade-off between capacity,inventory,and backlog costs.

A poor aggregate plan may result in a large amount of excess inventory and capacity,thereby raising costs.

The success of advanced planning systems is highly dependent on

Aggregate planning is concerned with determining

A chase strategy for aggregate planning synchronizes production rate with the demand rate.

The quality of the forecast can be improved by using information from

A linear programming formulation of an aggregate plan would typically have a different decision variable for per unit material cost and labor's hourly wage.

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 8: Aggregate Planning in a Supply Chain

The quality of the aggregate plan can be improved by using information from

Aggregate planning,to be effective,requires inputs from

Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.

Breaking an aggregate plan into separate plans for each product creates a master production schedule.

The goal of aggregate planning is to build a plan that satisfies demand while minimizing downtime.

As a general rule,advanced planning systems rely on

Capacity used to satisfy demand that is higher than forecasted is

To create an aggregate plan,a company must specify the planning horizon for the plan and the duration of each period within the planning horizon.

The strategy where the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off employees as the demand rate varies is the

Forecasting errors are dealt with in aggregate plans using either safety backlog or safety capacity.

The aggregate planner must make a trade-off between capacity,inventory,and backlog costs.

A poor aggregate plan may result in a large amount of excess inventory and capacity,thereby raising costs.

The success of advanced planning systems is highly dependent on

Aggregate planning is concerned with determining

A chase strategy for aggregate planning synchronizes production rate with the demand rate.

The quality of the forecast can be improved by using information from

A linear programming formulation of an aggregate plan would typically have a different decision variable for per unit material cost and labor's hourly wage.

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters