question

Aggregate planning is capacity planning that typically covers a time horizon of one to three months.

answer

FALSE

question

The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand.

answer

TRUE

question

Aggregate planners are concerned with the quality and quantity of expected demand.

answer

FALSE

question

Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate range of time.

answer

TRUE

question

The assignment of work to specific machines and people are examples of aggregate planning.

answer

FALSE

question

The output from aggregate planning is a detailed business plan covering the next 2 to 12 months.

answer

FALSE

question

Demand can be altered in aggregate planning by promotion and producing additional product using overtime.

answer

FALSE

question

Capacity can be modified in aggregate planning by promotion and producing additional product using overtime.

answer

FALSE

question

Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques.

answer

FALSE

question

Seasonality in demand has the advantage of leveling out requirements for our product or service.

answer

FALSE

question

A level capacity strategy is also known as a chase demand strategy.

answer

FALSE

question

An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low.

answer

TRUE

question

Linear programming models yield the optimal solution.

answer

TRUE

question

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

answer

TRUE

question

Aggregate planners commonly use trial-and-error methods in developing aggregate plans.

answer

TRUE

question

The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

answer

FALSE

question

Aggregate planners typically use mathematical techniques such as linear programming and linear decision rules for planning.

answer

FALSE

question

Disaggregating an aggregate plan leads to a master schedule.

answer

TRUE

question

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

answer

TRUE

question

Departmental budgeting is an example of aggregate planning.

answer

TRUE

question

Master schedulers are employed primarily by service organizations.

answer

FALSE

question

Subcontracting "in" would apply to periods in which our organization has excess capacity.

answer

TRUE

question

Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity.

answer

TRUE

question

A time fence in the master schedule is used to prevent unauthorized people from making changes to the schedule.

answer

FALSE

question

After the first period of the planning horizon, available-to-promise is computed only for those periods in which there is an MPS quantity.

answer

TRUE

question

In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

answer

FALSE

question

Which of the following best describes aggregate planning?

answer

an attempt to respond to predicted demand within the constraints set by product, process, and location decisions

question

Effectively using labor resources during periods of peak demand and low demand would be the goal of aggregate planners in:

answer

financial services.

question

Aggregate planning is capacity planning for:

answer

the intermediate range.

question

One area to which aggregate planning decisions relate is:

answer

inventory levels

question

Which of the following is an input to aggregate planning?

answer

demand forecasts for each period

question

Essentially, the output of aggregate planning is the:

answer

production plan.

question

In doing aggregate planning for a firm producing paint, the aggregate planners would most likely deal with:

answer

just gallons of paint, without concern for the different colors and sizes.

question

Aggregate planning requires which of the following information? (I) a forecast of expected demand (II) current levels of inventory (III) policies regarding employment levels

answer

I, II, and III

question

Aggregate planners attempt to balance:

answer

capacity and demand.

question

Which of the following is not an input to the aggregate planning process?

answer

master production schedules

question

Which one of the following would not be considered a decision option for purposes of aggregate planning?

answer

production costs

question

Which of the following is not a basic option for altering the availability of capacity in a service environment?

answer

inventory

question

Which one of the following is not a basic option for altering demand?

answer

subcontracting

question

One option for altering the pattern of demand is:

answer

back orders.

question

Which of the following would not be a strategy associated with adjusting aggregate capacity to meet expected demand?

answer

Use back orders.

question

One option for altering the availability of manufacturing capacity is:

answer

inventories.

question

One option for altering the availability of capacity is:

answer

use of overtime or slack time.

question

In order to use the level capacity strategy, variations in demand are met by:

answer

using combination of inventories, overtime, part time, and back orders.

question

In using the chase strategy, variations in demand could be met by:

answer

varying output during regular time by changing employment levels.

question

Uncommitted inventory is called:

answer

available-to-promise inventory.

question

Aggregate planners seek to match supply and demand:

answer

at minimum overall cost.

question

In practice, the more commonly used techniques for aggregate planning are:

answer

informal trial-and-error techniques.

question

The main disadvantage(s) of informal techniques used for aggregate planning is(are):

answer

they may not result in the best plan.

question

Inventory information for firm ABC: What is the expected inventory at the end of April 2008?

answer

250

question

inventory information for firm ABC: What was the inventory at the end of March 2008?

answer

150

question

Linear programming to produce an aggregate plan:

answer

will produce the best plan if accurate inputs are used.

question

Simulation to produce an aggregate plan:

answer

will produce a plan that may not be the best plan.

question

Which of the following is most closely associated with disaggregation?

answer

master schedule

question

The direct result of disaggregating the aggregate plan is the:

answer

master schedule.

question

Moving from the aggregate plan to a master production schedule requires:

answer

disaggregation.

question

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is:

answer

available-to-promise inventory.

question

Proactive and reactive aggregate planning strategies are best associated with:

answer

demand and capacity options.

question

Using dynamic pricing in response to capacity variability to ensure that perishable inventory is not wasted is known as:

answer

yield management.

question

Which of the following are typically in play in a circumstance in which yield management is worthwhile? I) Perishable capacity (II) Ample finished goods storage (III) Demand variability (IV) Low holding costs

answer

I and III only

question

Aggregate planning for services is more difficult than aggregate planning for manufacturing because __________ and __________ are more difficult to predict.

answer

demand; capacity availability

question

One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is:

answer

labor is more flexible.

question

Aggregate planning in the case of a high-volume product output business such as a restaurant is directed toward:

answer

smoothing the service rate.

question

A company's product line consists of 40 percent Product A, 40 percent Product B, and 20 percent Product C. The aggregate plan calls for total production that averages 1,100 units per quarter. Quarter 1 production will be 800 units, quarter 2 production will be 1,400 units, and quarter 3 production will be 1,200 units. How many units of Product A will be produced in quarter 4?

answer

400 units

question

A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected on-hand inventory at the end of period 2?

answer

1

question

What quantity is available for commitment to new customers in either of the first two periods?

answer

4

question

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3. What is the projected on-hand inventory at the end of period 2?

answer

12

question

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3. What quantity is available for commitment to new customers prior to the receipt of the MPS quantity in week 3?

answer

14

question

When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.

answer

excess capacity

question

The more __________ demand is, the more the aggregate plan will tend to reflect the ____________ strategy.

answer

stable; level

question

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

answer

staff

question

Which of the following differs between aggregate planning in services and aggregate planning in manufacturing?

answer

the perishability of capacity

question

At XYZ Corp., the aggregate planning unit reflects the fact that 50 percent of its output is product version A, 30 percent is version B, and 20 percent is version C. Suppose that over the coming year forecasted total demand (in planning units) is for 10,400 units. Once the production plan is disaggregated, what will the weekly forecast for version A be (assume 52 weeks per year)?

answer

100

question

A master production schedule quantity of 300 units will arrive in week 6. Weekly demand over weeks 3 through 10 is forecasted at 50 units. At present, orders have been booked in various quantities in weeks 1, 2, 3, and 4. What is available to promise for week 6?

answer

300

question

Which of the following steps is necessary to ensure that a master schedule is valid?

answer

rough-cut capacity planning

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