Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The following are important considerations when developing a strategy to meet uneven demand

Accepted Answer

A)  operations, capacity, and cost
B)  flexibility, costs, and company policy
C)  forecasts, policy, and capacity
D)  suppliers, distributors, and operations
E)  capacity, forecasts, costsF) A) and E)
G) B) and E)

Question 3

Using variable pricing in response to demand variability tomaximize revenue using perishablecapacity is known as

Accepted Answer

A)  yield management.
B)  profit minimization.
C)  capacity loading.
D)  demand optimization.
E)  perishability avoidance.F) C) and D)
G) A) and E)

Question 4

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

Accepted Answer

A)  varying output during regular time without changing employment levels.
B)  varying output during regular time by changing employment levels.
C)  varying output by changing overtime levels.
D)  using some combination of inventories, overtime, part-time, subcontracting, and back orders.
E)  price adjustments.F) B) and D)
G) A) and E)

Question 5

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

Accepted Answer

A)  uncertainty in demand
B)  costs of storing inventory
C)  the perishability of capacity
D)  cost of overtime
E)  cost of hiringF) A) and D)
G) A) and C)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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?

Accepted Answer

A)  50
B)  6
C)  300
D)  100
E)  cannot be determined without projected on-hand informationF) A) and E)
G) A) and B)

Question 8

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?

Accepted Answer

A)  14
B)  32
C)  12
D)  20
E)  impossible to say without more informationF) D) and E)
G) A) and B)

Question 9

This aggregate planning technique is known for being computerized, although some assumptions may not be valid.

Accepted Answer

A)  linear programming
B)  spreadsheet
C)  simulation
D)  heuristic
E)  trial and errorF) A) and E)
G) None of the above

Question 10

Which of the following is an input to aggregate planning?

Accepted Answer

A)  ending inventory
B)  demand forecasts for each period
C)  customer levels
D)  setup costs
E)  quantity discountsF) B) and E)
G) C) and D)

Question 11

One option for altering the availability of capacity is

Accepted Answer

A)  use of overtime or slack time.
B)  pricing.
C)  promotion.
D)  back orders.
E)  rigidly fixing work schedules.F) C) and E)
G) C) and D)

Question 12

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

Accepted Answer

A)  just gallons of paint, without concern for the different colors and sizes.
B)  gallons of paint, but be concerned with the different colors to be produced.
C)  gallons, quarts, pints, and all the different sizes to be produced.
D)  all the different sizes and all the different colors by size.
E)  all of the different colors targeted for different markets.F) B) and D)
G) None of the above

Question 13

This aggregate planning technique is known for being intuitively appealing.

Accepted Answer

A)  linear programming
B)  spreadsheet
C)  simulation
D)  heuristic
E)  trial and errorF) B) and D)
G) A) and E)

Question 14

The goal of aggregate planning is to achieve a production plan thateffectively utilizes the organization's resources to meet expected demand.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Many organizations choose to accomplish aggregate planning on the basis of _____ and _____ methods.

Accepted Answer

A)  linear programming; trial-and-error.
B)  experience; trial-and-error.
C)  simulation; experience.
D)  spreadsheet; experience.
E)  heuristic; computerized.F) A) and D)
G) A) and C)

Question 17

Which of the following is most closely associated with disaggregation?

Accepted Answer

A)  subcontracting
B)  master schedule
C)  diversity
D)  varying inventory levels
E)  firing and laying offF) All of the above
G) A) and B)

Question 18

A time fence in the master schedule is used to prevent changes to the schedule within the frozen section.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 11: Aggregate Planning and Master Scheduling

Using variable pricing in response to demand variability tomaximize revenue using perishablecapacity is known as

Correct AnswerverifiedShow Answer

The goal of aggregate planning is to achieve a production plan thateffectively utilizes the organization's resources to meet expected demand.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Which of the following is an input to aggregate planning?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Many organizations choose to accomplish aggregate planning on the basis of _____ and _____ methods.

Correct AnswerverifiedShow Answer

The following are important considerations when developing a strategy to meet uneven demand

Correct AnswerverifiedShow Answer

One option for altering the availability of capacity is

Correct AnswerverifiedShow Answer

This aggregate planning technique is known for being computerized, although some assumptions may not be valid.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is most closely associated with disaggregation?

Correct AnswerverifiedShow Answer

A time fence in the master schedule is used to prevent changes to the schedule within the frozen section.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

This aggregate planning technique is known for being intuitively appealing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Many organizations choose to accomplish aggregate planning on the basis of _ and _ methods.

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