Question 1

Which of these is among the demand options of aggregate planning?

Accepted Answer

A) subcontracting 
B) back-ordering during high-demand periods 
C) changing inventory levels 
D) varying workforce size 
E) varying production rates through overtime or idle time 
A) subcontracting 
B) back-ordering during high-demand periods 
C) changing inventory levels 
D) varying workforce size 
E) varying production rates through overtime or idle time

Question 2

To make revenue management work,the company needs to manage what three issues?

Accepted Answer

(1)multiple pricing structures

Question 3

Which choice best describes level scheduling?

Accepted Answer

A) Daily production is variable from period to period. 
B) Subcontracting,hiring,and layoffs manipulate supply. 
C) Price points are calculated to match demand to capacity. 
D) Inventory goes up or down to buffer the difference between demand and production. 
E) Overtime is used to handle seasonal demand fluctuations. 
A) Daily production is variable from period to period. 
B) Subcontracting,hiring,and layoffs manipulate supply. 
C) Price points are calculated to match demand to capacity. 
D) Inventory goes up or down to buffer the difference between demand and production. 
E) Overtime is used to handle seasonal demand fluctuations.

Question 4

________ involves capacity decisions that determine the allocation of resources to maximize revenue or yield.

Accepted Answer

Revenue ma

Question 5

A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.

Accepted Answer

A) True 
 B)False

Question 6

Among the mathematical approaches to aggregate planning,________ is good at working with inventories,holding costs,overtime,and subcontracting,but not with hiring and layoffs.

Accepted Answer

the transp

Question 7

The use of part-time workers as an aggregate planning option may be less costly than using full-time workers,but it may also reduce quality levels.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements regarding aggregate planning in services is FALSE?

Accepted Answer

A) Approaches to aggregate planning differ by the type of service provided. 
B) Some service organizations conduct aggregate planning in exactly the same way as manufacturing firms,but with demand management taking a more active role. 
C) Aggregate planning in some service industries may be easier than in manufacturing. 
D) Labor is the primary aggregate planning vehicle. 
E) Level scheduling is far more common than using a chase strategy. 
A) Approaches to aggregate planning differ by the type of service provided. 
B) Some service organizations conduct aggregate planning in exactly the same way as manufacturing firms,but with demand management taking a more active role. 
C) Aggregate planning in some service industries may be easier than in manufacturing. 
D) Labor is the primary aggregate planning vehicle. 
E) Level scheduling is far more common than using a chase strategy.

Question 9

Finding an ideal mixed strategy is complicated by the huge number of possible strategies.

Accepted Answer

A) True 
 B)False

Question 10

Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
   Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; or Plan B-produce at a constant rate of 1200 and obtain the remainder from overtime?

Accepted Answer

Plan A would cost $165,400,whi

Question 11

Golden Eagle Machine Works has the following demand requirements and other data for the upcoming four quarters.
   What is the total cost of pursuing a chase aggregate plan over the coming year?

Accepted Answer

For a chase strategy,quarterly

Question 12

Aggregate planning would entail which of the following production aspects at BMW for a 12-month period?

Accepted Answer

A) number of cars with a hi-fi stereo system to produce 
B) number of two-door vs.four-door cars to produce 
C) number of green cars to produce 
D) total number of cars to produce 
E) B,C,and D 
A) number of cars with a hi-fi stereo system to produce 
B) number of two-door vs.four-door cars to produce 
C) number of green cars to produce 
D) total number of cars to produce 
E) B,C,and D

Question 13

If a service firm were to attempt level scheduling for aggregate planning,should its level of output be at average demand,peak demand,or minimum demand?

Accepted Answer

This is a critical-thinking question for

Question 14

Byron's Manufacturing makes tables.Demand for the next four months and capacities of the plant are shown in the table below.Unit cost on regular time is $40.Overtime cost is 150% of regular time cost.Subcontracting is available in substantial quantity at $75 per unit.Holding costs are $5 per table per month; back orders cost the firm $10 per unit per month.Byron's management believes that the transportation algorithm can be used to optimize this scheduling problem.The firm has 50 units of beginning inventory and anticipates no ending inventory.
   Answer the following questions based on the data table and solution table shown below.   a.How many units will be produced on regular time in June?
b.How many units will be produced by subcontracting over the four-month period?
c.What will be the inventory at the end of April?
d.What will be total production from all sources in April?
e.What will be the total cost of the optimum solution?
f.Does the firm utilize the expensive options of subcontracting and back ordering? When; why?

Accepted Answer

(a)400; (b)250; (c)0; (d)550; (e)Total C

Question 15

Which of the following aggregate planning strategies is known to lower employee morale?

Accepted Answer

A) yield management 
B) counterseasonal product and service mixing 
C) changing inventory levels 
D) varying work force size by hiring or layoffs 
E) back ordering during high demand periods 
A) yield management 
B) counterseasonal product and service mixing 
C) changing inventory levels 
D) varying work force size by hiring or layoffs 
E) back ordering during high demand periods

Question 16

The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.

Accepted Answer

A) True 
 B)False

Question 17

Mixed strategies in aggregate planning may utilize inventory,work force,and production rate changes over the planning horizon.

Accepted Answer

A) True 
 B)False

Question 18

In aggregate planning,the amount of overtime and the size of the work force are both adjustable elements of capacity.

Accepted Answer

A) True 
 B)False

Question 19

What is the primary management challenge when implementing revenue management?

Accepted Answer

Identifying differen

Question 20

Aggregate planning in manufacturing ties organizational strategic goals to a production plan.

Accepted Answer

A) True 
 B)False

Exam 14: Aggregate Planning and Sop

Which of these is among the demand options of aggregate planning?

To make revenue management work,the company needs to manage what three issues?

Which choice best describes level scheduling?

________ involves capacity decisions that determine the allocation of resources to maximize revenue or yield.

A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.

Among the mathematical approaches to aggregate planning,________ is good at working with inventories,holding costs,overtime,and subcontracting,but not with hiring and layoffs.

The use of part-time workers as an aggregate planning option may be less costly than using full-time workers,but it may also reduce quality levels.

Which of the following statements regarding aggregate planning in services is FALSE?

Finding an ideal mixed strategy is complicated by the huge number of possible strategies.

Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; or Plan B-produce at a constant rate of 1200 and obtain the remainder from overtime?

Golden Eagle Machine Works has the following demand requirements and other data for the upcoming four quarters. What is the total cost of pursuing a chase aggregate plan over the coming year?

Aggregate planning would entail which of the following production aspects at BMW for a 12-month period?

If a service firm were to attempt level scheduling for aggregate planning,should its level of output be at average demand,peak demand,or minimum demand?

Which of the following aggregate planning strategies is known to lower employee morale?

The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.

Mixed strategies in aggregate planning may utilize inventory,work force,and production rate changes over the planning horizon.

In aggregate planning,the amount of overtime and the size of the work force are both adjustable elements of capacity.

What is the primary management challenge when implementing revenue management?

Aggregate planning in manufacturing ties organizational strategic goals to a production plan.

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