Scenario 8.1 - Gang Aft Agley Gang Aft Agley,a manufacturing company,faces the aggregate planning problem shown in the table below.Cost of regular production is $5 per unit,the cost of producing the same unit on overtime is $7.50,the cost of subcontracting is $9 per unit,and the cost of carrying a unit in inventory from one month to the next is $2. \[\begin{array} { | l | c | c | c | c | c | } \hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \\ \hline \text { Forecast } & 500 & 750 & 1200 & 650 & 300 \\ \hline \text { Beginning Inventory } & 100 & & & & \\ \hline \text { Regular Time } & & & & & \\ \hline \text { Overtime } & & & & & \\ \hline \text { Subcontracting } & & & & & \\ \hline \text { Ending Inventory } & & & & & \\ \hline \end{array}\] The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window.The plant capacity is 600 units per month produced using two shifts,regardless of the number of days in a month.By policy,management wants to avoid stockouts. -Which of these statements about Scenario 8.1 is evident without even developing an aggregate plan?

A) Some overtime will be needed. B) Ending inventory must be negative. C) Overtime must exceed subcontracting. D) Subcontracting must exceed regular time output. A) Some overtime will be needed. B) Ending inventory must be negative. C) Overtime must exceed subcontracting. D) Subcontracting must exceed regular time output.

Scenario 8.1 - Gang Aft Agley Gang Aft Agley,a manufacturing company,faces the aggregate planning problem shown in the table below.Cost of regular production is $5 per unit,the cost of producing the same unit on overtime is $7.50,the cost of subcontracting is $9 per unit,and the cost of carrying a unit in inventory from one month to the next is $2. \[\begin{array} { | l | c | c | c | c | c | } \hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \\ \hline \text { Forecast } & 500 & 750 & 1200 & 650 & 300 \\ \hline \text { Beginning Inventory } & 100 & & & & \\ \hline \text { Regular Time } & & & & & \\ \hline \text { Overtime } & & & & & \\ \hline \text { Subcontracting } & & & & & \\ \hline \text { Ending Inventory } & & & & & \\ \hline \end{array}\] The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window.The plant capacity is 600 units per month produced using two shifts,regardless of the number of days in a month.By policy,management wants to avoid stockouts. -Use the information from Scenario 8.1 to determine the number of decision variables in this scenario.

A) 10 B) 15 C) 20 D) 24 A) 10 B) 15 C) 20 D) 24

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 month is less than 100% of regular capacity used for the optimal aggregate plan for Scenario 8.3?

A) 100% of regular capacity is always used. B) August C) September D) October A) 100% of regular capacity is always used. B) August C) September D) October

Scenario 8.2 - Willow A company faces the aggregate planning problem shown in the table below.Cost of regular production is $8 per unit,the cost of producing the same unit on overtime is $15,the cost of subcontracting is $12 per unit,and the cost of carrying a unit in inventory from one month to the next is $6. \[\begin{array} { | l | c | c | c | c | c | } \hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \\ \hline \text { Forecast } & 400 & 800 & 1200 & 700 & 300 \\ \hline \text { Beginning Inventory } & 100 & & & & \\ \hline \text { Regular Time } & & & & & \\ \hline \text { Overtime } & & & & & \\ \hline \text { Subcontracting } & & & & & \\ \hline \text { Ending Inventory } & & & & & \\ \hline \end{array}\] The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 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 months does the regular time output exceed plant capacity in the optimal solution to Scenario 8.2?

A) 0 B) 1 C) 2 D) 3 A) 0 B) 1 C) 2 D) 3

Scenario 8.1 — Gang Aft Agley Gang Aft Agley, a manufacturing company, faces the aggregate planning problem shown in the table below. Cost of regular production is $5 per unit, the cost of producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit, and the cost of carrying a unit in inventory from one month to the next is $2. $\begin{array}{|l|c|c|c|c|c|} \hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \\ \hline \text { Forecast } & 500 & 750 & 1200 & 650 & 300 \\ \hline \text { Beginning Inventory } & 100 & & & & \\ \hline \text { Regular Time } & & & & & \\ \hline \text { Overtime } & & & & & \\ \hline \text { Subcontracting } & & & & & \\ \hline \text { Ending Inventory } & & & & & \\ \hline \end{array}$ The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window. The plant capacity is 600 units per month produced using two shifts, regardless of the number of days in a month. By policy, management wants to avoid stockouts. -Formulate the aggregate plan using linear programming.

Using the variables @#LAT-DLM& regular production;

Exam 8: Aggregate Planning in a Supply Chain

Scenario 8.1 - Gang Aft Agley Gang Aft Agley,a manufacturing company,faces the aggregate planning problem shown in the table below.Cost of regular production is $5 per unit,the cost of producing the same unit on overtime is $7.50,the cost of subcontracting is $9 per unit,and the cost of carrying a unit in inventory from one month to the next is $2. January February March April May Forecast 500 750 1200 650 300 Beginning Inventory 100 Regular Time Overtime Subcontracting Ending Inventory The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window.The plant capacity is 600 units per month produced using two shifts,regardless of the number of days in a month.By policy,management wants to avoid stockouts. -Which of these statements about Scenario 8.1 is evident without even developing an aggregate plan?

(Multiple Choice)

4.8/5

(75)

Question 61

How frequently should the aggregate plan be rerun?

(Multiple Choice)

4.9/5

(75)

Question 62

Scenario 8.1 - Gang Aft Agley Gang Aft Agley,a manufacturing company,faces the aggregate planning problem shown in the table below.Cost of regular production is $5 per unit,the cost of producing the same unit on overtime is $7.50,the cost of subcontracting is $9 per unit,and the cost of carrying a unit in inventory from one month to the next is $2. January February March April May Forecast 500 750 1200 650 300 Beginning Inventory 100 Regular Time Overtime Subcontracting Ending Inventory The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window.The plant capacity is 600 units per month produced using two shifts,regardless of the number of days in a month.By policy,management wants to avoid stockouts. -Use the information from Scenario 8.1 to determine the number of decision variables in this scenario.

(Multiple Choice)

4.7/5

(80)

Question 63

Discuss the information required for aggregate planning.

(Essay)

4.9/5

(98)

Question 64

Aggregate planning is a process by which a company determines levels of capacity,production,subcontracting,inventory,stockouts,and even pricing over a specified time horizon.

(True/False)

4.8/5

(91)

Question 65

An aggregate plan can be used to determine whether a company needs to hire or lay off workers.

(True/False)

4.8/5

(87)

Question 66

Most strategies that an aggregate planner actually uses are in combination and are referred to as the

(Multiple Choice)

4.8/5

(71)

Question 67

To improve the quality of aggregate plans,forecast errors must be taken into account when formulating aggregate plans.

(True/False)

4.8/5

(82)

Question 68

Which of these software vendors offer advanced planning systems?

(Multiple Choice)

4.9/5

(76)

Question 69

The planning horizon is

(Multiple Choice)

4.8/5

(75)

Question 70

The strategy where workforce (capacity)is kept stable but the number of hours worked is varied over time in an effort to synchronize production with demand is the

(Multiple Choice)

5.0/5

(72)

Question 71

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. July August September October November Forecast 800 650 450 550 900 Beginning Inventory 140 Regular Time Overtime Subcontracting Ending Inventory 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 month is less than 100% of regular capacity used for the optimal aggregate plan for Scenario 8.3?

(Multiple Choice)

4.7/5

(80)

Question 72

Companies should work with downstream partners to produce forecasts and with upstream partners to determine constraints when doing aggregate planning.

(True/False)

5.0/5

(85)

Question 73

Scenario 8.2 - Willow A company faces the aggregate planning problem shown in the table below.Cost of regular production is $8 per unit,the cost of producing the same unit on overtime is $15,the cost of subcontracting is $12 per unit,and the cost of carrying a unit in inventory from one month to the next is $6. January February March April May Forecast 400 800 1200 700 300 Beginning Inventory 100 Regular Time Overtime Subcontracting Ending Inventory The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 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 months does the regular time output exceed plant capacity in the optimal solution to Scenario 8.2?

(Multiple Choice)

4.8/5

(68)

Question 74

Scenario 8.1 — Gang Aft Agley Gang Aft Agley, a manufacturing company, faces the aggregate planning problem shown in the table below. Cost of regular production is $5 per unit, the cost of producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit, and the cost of carrying a unit in inventory from one month to the next is $2. January February March April May Forecast 500 750 1200 650 300 Beginning Inventory 100 Regular Time Overtime Subcontracting Ending Inventory The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window. The plant capacity is 600 units per month produced using two shifts, regardless of the number of days in a month. By policy, management wants to avoid stockouts. -Formulate the aggregate plan using linear programming.

(Essay)

4.9/5

(99)

Question 75

What information does a master production schedule provide that an aggregate plan does not?

(Multiple Choice)

4.7/5

(70)

Question 76

________ is used to determine customer service levels.

(Multiple Choice)

5.0/5

(79)

Question 77

Inventory held to satisfy demand that is higher than forecasted is

(Multiple Choice)

4.9/5

(65)

Question 78

The operational parameter concerned with the number of units completed per unit time (such as per week or per month)is

(Multiple Choice)

5.0/5

(82)

Question 79

An aggregate planner requires information on constraints.Which of the following is one of the typical constraints for an aggregate planner?

(Multiple Choice)

4.9/5

(77)

Question 80

How frequently should the aggregate plan be rerun?

Discuss the information required for aggregate planning.

Aggregate planning is a process by which a company determines levels of capacity,production,subcontracting,inventory,stockouts,and even pricing over a specified time horizon.

An aggregate plan can be used to determine whether a company needs to hire or lay off workers.

Most strategies that an aggregate planner actually uses are in combination and are referred to as the

To improve the quality of aggregate plans,forecast errors must be taken into account when formulating aggregate plans.

Which of these software vendors offer advanced planning systems?

The planning horizon is

The strategy where workforce (capacity)is kept stable but the number of hours worked is varied over time in an effort to synchronize production with demand is the

Companies should work with downstream partners to produce forecasts and with upstream partners to determine constraints when doing aggregate planning.

What information does a master production schedule provide that an aggregate plan does not?

________ is used to determine customer service levels.

Inventory held to satisfy demand that is higher than forecasted is

The operational parameter concerned with the number of units completed per unit time (such as per week or per month)is

An aggregate planner requires information on constraints.Which of the following is one of the typical constraints for an aggregate planner?

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