Question 1

Identify (a)the demand options for aggregate planning; and (b)the capacity (supply)options for aggregate planning.

Accepted Answer

(a)Demand options are: influencing demand (through price,promotion,advertising,selling),back ordering during high-demand periods,and counterseasonal product and service mixing. (b)Capacity options are: changing inventory levels,varying workforce size by hiring or layoffs,varying production rates through overtime or idle time,subcontracting,and using part-time workers.

Question 2

Which of the following is NOT consistent with level scheduling?

Accepted Answer

A) varying the use of subcontracting 
B) finding alternative work for employees during low-demand periods 
C) using built-up inventory to meet demand requirements 
D) varying production levels and/or work force to meet demand requirements 
E) All of the above are inconsistent with the pure level strategy. 
A) varying the use of subcontracting 
B) finding alternative work for employees during low-demand periods 
C) using built-up inventory to meet demand requirements 
D) varying production levels and/or work force to meet demand requirements 
E) All of the above are inconsistent with the pure level strategy. D

Question 3

Which of the following is NOT an advantage of level scheduling?

Accepted Answer

A) stable employment 
B) lower absenteeism 
C) matching production exactly with sales 
D) lower turnover 
E) more employee commitment 
A) stable employment 
B) lower absenteeism 
C) matching production exactly with sales 
D) lower turnover 
E) more employee commitment C

Question 4

Explain the fundamental difference between the "capacity options" and the "demand options" of aggregate planning strategies.

Accepted Answer

Capacity options do not try to change th

Question 5

The aggregate planning process usually includes dispatching of individual jobs.

Accepted Answer

A) True 
 B)False

Question 6

________ for developing aggregate plans work with a few variables at a time and are easy to understand and use.

Accepted Answer

Graphical

Question 7

Industries in which revenue management techniques are easiest to apply are those where:

Accepted Answer

A) use tends to be predictable,and pricing tends to be fixed. 
B) use tends to be predictable,and pricing tends to be variable. 
C) use tends to be uncertain,and pricing tends to be fixed. 
D) use tends to be uncertain,and pricing tends to be variable. 
E) All of the above,i.e.,there is no difference. 
A) use tends to be predictable,and pricing tends to be fixed. 
B) use tends to be predictable,and pricing tends to be variable. 
C) use tends to be uncertain,and pricing tends to be fixed. 
D) use tends to be uncertain,and pricing tends to be variable. 
E) All of the above,i.e.,there is no difference.

Question 8

One question that operations managers must answer when generating an aggregate plan is whether prices or other factors should be changed to influence demand.

Accepted Answer

A) True 
 B)False

Question 9

Graphical techniques are easy to understand and use,but are not well-suited for generating optimal strategies.

Accepted Answer

A) True 
 B)False

Question 10

The ________ strategy sets production equal to forecasted demand.

Accepted Answer

The answer of The ________ strategy sets production equal to...

Question 11

Fairview Industries is preparing its aggregate plan for the second half of the year.The table below contains monthly demand estimates and working days per month.Complete the table by computing total demand,demand per day (for each month),and the average requirement (in units per day)over the six-month planning horizon.Prepare a graph of forecast demand and level production,by months,for the planning period.Label your graph carefully.

Accepted Answer

The answer of Fairview Industries is preparing its aggregate plan...

Question 12

A hotel room that goes unrented,a dental appointment that no patient booked,and an airline seat that went unsold,are all examples of ________ in services.

Accepted Answer

perishable

Question 13

Normally,the transportation model is used to solve problems involving several physical sources of product and several physical uses of the product,as in factories and warehouses.How is it possible to use the transportation model where the "routes" are from one time period to another? Describe how this provides aggregate planners with a usable mathematical model.

Accepted Answer

Time travel is not involved."From" regul

Question 14

Dependence on an external source of supply is found in which of the following aggregate planning strategies?

Accepted Answer

A) varying production rates through overtime or idle time 
B) subcontracting 
C) using part-time workers 
D) back ordering during high demand periods 
E) hiring and laying off 
A) varying production rates through overtime or idle time 
B) subcontracting 
C) using part-time workers 
D) back ordering during high demand periods 
E) hiring and laying off

Question 15

Under which of the following do planning tasks associated with production planning and budgeting,as well as setting employment,inventory,and subcontracting levels,typically fall?

Accepted Answer

A) short-range plans 
B) intermediate-range plans 
C) long-range plans 
D) demand options 
E) strategic planning 
A) short-range plans 
B) intermediate-range plans 
C) long-range plans 
D) demand options 
E) strategic planning

Question 16

An electronics manufacturer makes video security systems for parking lots.Demand estimates for the next four quarters are 15,9,23,and 17 units.The company is preparing an aggregate plan that uses inventory,regular time,overtime,and back orders.Subcontracting is not allowed.Regular time capacity is 12 units for quarters 1 and 2,15 units for quarters 3 and 4.Overtime capacity is 6 units per quarter.Regular time cost is $20,000 per system,while overtime cost is $30,000 per unit.Back order cost is $2000 per system per quarter; inventory holding cost is $500 per unit per quarter.Beginning inventory is zero.
Complete the table of data inputs for solving this aggregate planning problem with the transportation method.Specifically,how many sources are there,and how many destinations? What is the supply from each source,and the demand of each destination? What is the cost of each source-destination pair?

Accepted Answer

There are eight sources: regular time an

Question 17

Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.

Accepted Answer

A) True 
 B)False

Question 18

The textbook illustrates demand management in the form of price cuts or discounts.Can demand manipulation for aggregate planning involve price increases? Explain; provide an example.

Accepted Answer

The text did allude to price increases w

Question 19

Compare the chase strategy versus level scheduling.

Accepted Answer

The chase strategy sets production equal

Question 20

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Accepted Answer

A) True 
 B)False

Exam 14: Aggregate Planning and Sop

Identify (a)the demand options for aggregate planning; and (b)the capacity (supply)options for aggregate planning.

Which of the following is NOT consistent with level scheduling?

Which of the following is NOT an advantage of level scheduling?

Explain the fundamental difference between the "capacity options" and the "demand options" of aggregate planning strategies.

The aggregate planning process usually includes dispatching of individual jobs.

________ for developing aggregate plans work with a few variables at a time and are easy to understand and use.

Industries in which revenue management techniques are easiest to apply are those where:

One question that operations managers must answer when generating an aggregate plan is whether prices or other factors should be changed to influence demand.

Graphical techniques are easy to understand and use,but are not well-suited for generating optimal strategies.

The ________ strategy sets production equal to forecasted demand.

A hotel room that goes unrented,a dental appointment that no patient booked,and an airline seat that went unsold,are all examples of ________ in services.

Dependence on an external source of supply is found in which of the following aggregate planning strategies?

Under which of the following do planning tasks associated with production planning and budgeting,as well as setting employment,inventory,and subcontracting levels,typically fall?

Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.

The textbook illustrates demand management in the form of price cuts or discounts.Can demand manipulation for aggregate planning involve price increases? Explain; provide an example.

Compare the chase strategy versus level scheduling.

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

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Process Strategy

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