Question 1

An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following?

Accepted Answer

A) production rates 
B) labor levels 
C) inventory levels 
D) overtime work 
E) facility capacity 
A) production rates 
B) labor levels 
C) inventory levels 
D) overtime work 
E) facility capacity

Question 2

What is disaggregation?

Accepted Answer

Disaggregation is th

Question 3

Osprey 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; Plan B-pure level strategy,or Plan C-1350 level with the remainder by subcontracting?

Accepted Answer

Plan A will cost $215,000,Plan

Question 4

A firm uses the pure chase strategy of aggregate planning.It produced 1000 units in the last period.Demand in the next period is estimated at 800,and demand over the next six periods (its aggregate planning horizon)is estimated to average 900 units.Which of the following tactics would be most representative of following a chase strategy?

Accepted Answer

A) add 100 units to inventory in the next period 
B) add 200 units to inventory in the next period 
C) hire workers to match the 100-unit difference 
D) lay off workers to match the 200-unit difference 
E) implement a lower price point to increase demand 
A) add 100 units to inventory in the next period 
B) add 200 units to inventory in the next period 
C) hire workers to match the 100-unit difference 
D) lay off workers to match the 200-unit difference 
E) implement a lower price point to increase demand

Question 5

A(n)________ is the result of the disaggregation of an aggregate plan.

Accepted Answer

master pro

Question 6

When developing an aggregate plan,one of the adjustable elements of capacity is the extent of subcontracting.

Accepted Answer

A) True 
 B)False

Question 7

Advertising and promotion are methods of manipulating product or service supply in aggregate planning.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would most likely fall under the scope of only an operations manager?

Accepted Answer

A) research and development 
B) new product plans 
C) capital investments 
D) facility location/capacity 
E) setting inventory levels 
A) research and development 
B) new product plans 
C) capital investments 
D) facility location/capacity 
E) setting inventory levels

Question 9

A firm uses graphical techniques in its aggregate planning efforts.Over the next twelve months (its intermediate period),it estimates the sum of demands to be 105,000 units.The firm has 250 production days per year.In January,which has 22 production days,demand is estimated to be 11,000 units.A graph of demand versus level production will show that:

Accepted Answer

A) the January requirement is below level production of 420 units. 
B) level production is approximately 1000 units per day. 
C) level production of 420 units per day is below the January requirement. 
D) level production is approximately 420 units per month. 
E) the firm must hire workers between December and January. 
A) the January requirement is below level production of 420 units. 
B) level production is approximately 1000 units per day. 
C) level production of 420 units per day is below the January requirement. 
D) level production is approximately 420 units per month. 
E) the firm must hire workers between December and January.

Question 10

Which choice below best describes the counterseasonal product demand option?

Accepted Answer

A) producing such products as lawnmowers and sunglasses during the winter 
B) developing a mix of products that smoothes out their demands 
C) lowering prices when demand is slack 
D) using subcontractors only when demand is excessive 
E) the breaking of the aggregate plan into finer levels of detail 
A) producing such products as lawnmowers and sunglasses during the winter 
B) developing a mix of products that smoothes out their demands 
C) lowering prices when demand is slack 
D) using subcontractors only when demand is excessive 
E) the breaking of the aggregate plan into finer levels of detail

Question 11

Reddick's Specialty Electronics makes weatherproof surveillance systems for parking lots.Demand estimates for the next four quarters are 25,9,13,and 17 units.The firm is preparing an aggregate plan that uses inventory,regular time and overtime and back orders.Subcontracting is not allowed.Regular time capacity is 15 units for quarters 1 and 2,18 units for quarters 3 and 4.Overtime capacity is 3 units per quarter.Regular time cost is $2000 per unit,while overtime cost is $3000 per unit.Back order cost is $300 per unit per quarter; inventory holding cost is $100 per unit per quarter.Beginning inventory is zero.
The data inputs for this problem,and the optimal solution,generated by microcomputer software,appear below.Answer the following questions based on the scenario and the solution.
a.How many total units will be produced in quarter 1 for delivery in quarter 1?
b.How many units in total will be used to fill back orders over the four quarters?
c.What is the cost to produce one unit in Quarter 4 using overtime to deliver in quarter 1 (filling a back order)?
d.At the end of quarter 3,what is the ending inventory of finished systems?
e.What is the total cost of the solution?
f.What is the average cost per unit?

Accepted Answer

a.15; b.10; c.$3,900

Question 12

________ is an approach to determine the quantity and timing of production for the intermediate future.

Accepted Answer

The answer of ________ is an approach to determine the...

Question 13

Revenue (or yield)management is best described as:

Accepted Answer

A) a situation where management yields to labor demands. 
B) a situation where the labor union yields to management demands. 
C) a process designed to increase the rate of output. 
D) allocation of scarce resources to customers at prices that will maximize revenue. 
E) management's selection of a product mix yielding maximum profits. 
A) a situation where management yields to labor demands. 
B) a situation where the labor union yields to management demands. 
C) a process designed to increase the rate of output. 
D) allocation of scarce resources to customers at prices that will maximize revenue. 
E) management's selection of a product mix yielding maximum profits.

Question 14

"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes which of the following?

Accepted Answer

A) the linear decision rule 
B) simulation 
C) the management coefficients model 
D) the transportation method 
E) graphical methods 
A) the linear decision rule 
B) simulation 
C) the management coefficients model 
D) the transportation method 
E) graphical methods

Question 15

Which of these aggregate planning strategies is a capacity option?

Accepted Answer

A) back ordering 
B) using part-time workers 
C) counterseasonal product mixing 
D) changing price 
E) promotion 
A) back ordering 
B) using part-time workers 
C) counterseasonal product mixing 
D) changing price 
E) promotion

Question 16

One of the demand options of aggregate planning is to vary the workforce by hiring or layoffs.

Accepted Answer

A) True 
 B)False

Question 17

One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.

Accepted Answer

A) True 
 B)False

Question 18

Because service firms do not inventory their output,a pure chase strategy is not appropriate.

Accepted Answer

A) True 
 B)False

Question 19

Aggregate planning for service firms that provide intangible output deals mainly with:

Accepted Answer

A) smoothing the production rate and finding the optimal size of the workforce. 
B) capital investment decisions. 
C) centralized purchasing. 
D) centralized production. 
E) planning for human resource requirements and managing demand. 
A) smoothing the production rate and finding the optimal size of the workforce. 
B) capital investment decisions. 
C) centralized purchasing. 
D) centralized production. 
E) planning for human resource requirements and managing demand.

Question 20

A manager is applying the transportation model of linear programming to solve an aggregate planning problem.Demand in period 1 is 100 units,and in period 2,demand is 150 units.The manager has 125 hours of regular employment available for $10/hour each period.In addition,50 hours of overtime are available for $15/hour each period.If holding costs are $2 per unit each period,how many hours of regular employment should be used in period 1? (Assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour.)

Accepted Answer

A) 100 
B) 125 
C) 150 
D) 50 
E) none of the above 
A) 100 
B) 125 
C) 150 
D) 50 
E) none of the above

Exam 14: Aggregate Planning and Sop

An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following?

What is disaggregation?

Osprey 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; Plan B-pure level strategy,or Plan C-1350 level with the remainder by subcontracting?

A(n)________ is the result of the disaggregation of an aggregate plan.

When developing an aggregate plan,one of the adjustable elements of capacity is the extent of subcontracting.

Advertising and promotion are methods of manipulating product or service supply in aggregate planning.

Which of the following would most likely fall under the scope of only an operations manager?

Which choice below best describes the counterseasonal product demand option?

________ is an approach to determine the quantity and timing of production for the intermediate future.

Revenue (or yield)management is best described as:

"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes which of the following?

Which of these aggregate planning strategies is a capacity option?

One of the demand options of aggregate planning is to vary the workforce by hiring or layoffs.

One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.

Because service firms do not inventory their output,a pure chase strategy is not appropriate.

Aggregate planning for service firms that provide intangible output deals mainly with:

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources, job Design, and Work Measurement

Supply Chain Management

Inventory Management

Material Requirements Planning Mrpand Erp

Short-Term Scheduling

Jit, tps, and Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

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