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- 1. Multiple Choice
Top executives tend to focus their attention on which type of forecasts?Top executives tend to focus their attention on which type of forecasts?
short-range
intermediate-range
long-range
weather
- 2. Multiple Choice
What is the typical time horizon for aggregate planning?
less than a month
up to 3 months
3 to 18 months
over one year
- 3. Multiple Choice
Which of the following is NOT an input to S&OP?
capacity decisions
product decisions
process planning
master production schedule
- 4. Multiple Choice
_________________is an approach to determine the quantity and timing of production for the intermediate future.
Aggregate planning
Planning Process
Chase strategy
Transportation method
- 5. Multiple Choice
The objective of aggregate planning is to meet forecast demand while ________ over the planning period.
minimizing cost
maximizing service level
minimizing stock out
minimizing fixed cost
- 6. Multiple Choice
An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following?
production rates
labor levels
inventory levels
facility capacity
- 7. Multiple Choice
Dependence on an external source of supply is found in which of the following aggregate planning strategies?
varying production rates through overtime or idle time
subcontracting
using part-time workers
back ordering during high demand periods
- 8. Multiple Choice
Which of the following aggregate planning strategies is a demand option?
changing price
subcontracting
varying production levels
changing inventory levels
- 9. Multiple Choice
A firm practices a pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900, 700, 1000, and 1000. Hiring cost is $20 per unit, and layoff cost is $5 per unit. Over the next year, what will be the sum of hiring and layoff costs?
$500
$2,500
$7,500
$7,000
- 10. Multiple Choice
"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes which of the following?
the linear decision rule
simulation
the transportation method
graphical methods
- 11. Multiple Choice
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.)
100
125
150
50
- 12. Multiple Choice
Which of the following actions is consistent with the use of level scheduling?
use inventory to meet demand requirements
use overtime to meet higher-than-average demand requirements
vary production levels to meet demand requirements
vary work force to meet demand requirements
- 13. Multiple Choice
Which of the following statements regarding aggregate planning in services is FALSE?
Approaches to aggregate planning differ by the type of service provided.
Some service organizations conduct aggregate planning in exactly the same way as manufacturing firms, but with demand management taking a more active role.
Labor is the primary aggregate planning vehicle.
Level scheduling is far more common than using a chase strategy.
- 14. Multiple Choice
Aggregate planning for service firms that provide intangible output deals mainly with:
smoothing the production rate and finding the optimal size of the workforce.
centralized purchasing.
planning for human resource requirements and managing demand.
centralized production.
- 15. Multiple Choice
Revenue (or yield) management is best described as:
a situation where management yields to labor demands
a situation where the labor union yields to management demands.
a process designed to increase the rate of output.
allocation of scarce resources to customers at prices that will maximize revenue.
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