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Exam 13: Aggregate Planning

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Question 41

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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) ?

A) 100
B) 125
C) 150
D) 50
E) 175

F) B) and E)
G) A) and B)

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Question 42

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What is the typical planning horizon for aggregate planning?

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The typical planning...

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Question 43

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

Which of the following aggregate planning strategies is a "demand option"?

How does aggregate planning in services differ from aggregate planning in manufacturing?

Fred's 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-700 level with the remainder by subcontracting?

The level scheduling strategy allows lower inventories than the pure chase strategy.

Which of the following aggregate planning strategies might direct your client to a competitor?

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

In aggregate planning,one of the adjustable elements of capacity is the extent of subcontracting.

List,in order,the five steps of the graphical method of aggregate planning.Is it possible that these steps can be properly followed and the solution properly implemented without using a graph? Explain.

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. 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?

Disaggregation is the process of breaking the aggregate plan into greater detail;one example of this detail is the Master Production Schedule.

Which of the following actions is consistent with the use of pure level strategy?

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

Identify (a)the demand options for aggregate planning;and (b)the capacity (supply)options for aggregate planning.

A hotel chain is considering using yield management to increase profits.Its plan is to sell unsold rooms at a discounted rate very close to the night of stay.For example,an unsold Friday night room would be discounted early in the week.It estimates that the percentage of sold rooms (total)would be equal to 50 + X,where X is the % discounted off of regular price.Meanwhile the % of rooms sold for full price compared to the discount would be 100 - 2X (some people would wait to book gambling a discount would happen).Find the ideal discount %.

A professional services firm is investigating yield management as a means of taking advantage of unused capacity.Analysts for this firm estimate a demand curve for the firm's service,which is sold by the hour.Points on this demand curve include 9000 hours at the current rate of $60 per hour,9500 hours at $55,10,000 hours at $50,and 10,500 hours at $45.Based on this demand curve,what price point would be best for the firm,if its objective is maximum revenue?

Which of the following statements about aggregate planning is false?

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