Question 1

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Accepted Answer

A) True 
 B)False  True

Question 2

A small private university normally charges the same price-$200-per credit-hour for all courses and for all students.While the university is pretty near capacity in the fall and spring,it finds that its classrooms are only about 60% occupied during the summer session.A student of operations management (who has recently read this chapter)wonders if yield management might be useful to both the university and its students alike.This student,with help from some economics majors,estimates a demand curve for summer course enrollment.Points on this demand curve include 9000 credit-hours at the current rate of $200,12,000 credit hours at $180,15,000 credit-hours at $160,and 18,000 credit-hours at $140.Based on this demand curve,what price point would best serve the university,if its objective is the greatest revenue for the summer session?

Accepted Answer

The student must consider that since 900...

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

________ is the process of breaking the aggregate plan into greater detail.

Accepted Answer

The answer of ________ is the process of breaking the...

Question 5

Which of the following statements about aggregate planning is true?

Accepted Answer

A)  The development of mathematical models has allowed aggregate planners to discontinue use of trial-and-error methods.
B)  In aggregate planning,back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand.
C)  A pure chase strategy allows lower inventories when compared to pure level scheduling.
D)  Disaggregation turns the master production schedule into an intermediate term master plan.
E)  Disaggregation results in the material purchasing system.F) A) and B)
G) B) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Normally,the transportation model is used to solve problems involving several physical sources of product and several physical uses of the product,as in factories and warehouses.How is it possible to use the transportation model where the "routes" are from one time period to another? Describe how this provides aggregate planners with a usable mathematical model.

Accepted Answer

Time travel is not involved."From" regular time March "To" demand May simply describes when production took place to provide the units sold in May."From" April production "To" March demand simply describes back orders - demand in one month is met by production in a later period.The algorithm is optimizing - it minimizes cost over the planning period;the algorithm balances supply and demand by combinations of capacity options and demand options.

Question 8

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

Accepted Answer

A)  use inventory to meet demand requirements
B)  use overtime to meet higher-than-average demand requirements
C)  vary production levels to meet demand requirements
D)  vary workforce to meet demand requirements
E)  use statistical sampling to meet average demand requirementsF) A) and B)
G) A) and C)

Question 9

The planning tasks associated with staffing,production,inventory,and sub-contracting levels typically fall under

Accepted Answer

A)  short-range plans.
B)  intermediate-range plans.
C)  long-range plans.
D)  demand options.
E)  strategic planning.F) A) and C)
G) A) and B)

Question 10

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 B will cost $179,500,and Plan C will cost $183,500.Plan B is the cheapest,by a small margin.
Plan A
Osprey Fabrication Solution
  Plan B
Osprey Fabrication Solution
  Plan C
Osprey Fabrication Solution

Question 11

Which of the following is not an advantage of level scheduling?

Accepted Answer

A)  stable employment
B)  lower absenteeism
C)  matching production exactly with sales
D)  lower turnover
E)  more employee commitmentF) A) and E)
G) C) and E)

Question 12

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

Accepted Answer

A)  influencing demand by changing price
B)  counterseasonal product mixing
C)  influencing demand by extending lead times
D)  changing inventory levels
E)  influencing demand by back orderingF) C) and D)
G) A) and B)

Question 13

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?

Accepted Answer

The yields of these price points are as ...

Question 14

Which of these aggregate planning strategies adjusts capacity to match demand?

Accepted Answer

A)  back ordering
B)  using part-time workers
C)  counterseasonal product mixing
D)  changing price
E)  leveling inventory purchasingF) A) and B)
G) D) and E)

Question 15

Osprey Machine Works has the following demand requirements and other data for the upcoming four quarters.
  What is the total cost of pursuing a level aggregate plan over the coming year?

Accepted Answer

Requirements total 9400 units,...

Question 16

Which of these is among the demand options of aggregate planning?

Accepted Answer

A)  subcontracting
B)  back-ordering during high-demand periods
C)  changing inventory levels
D)  varying workforce size
E)  varying production ratesF) B) and E)
G) B) and D)

Question 17

One question that operations managers must ask when generating an aggregate plan is what factors are likely to influence demand and by how much.

Accepted Answer

A) True 
 B)False

Question 18

________ work with a few variables at a time and are easy to understand and use.

Accepted Answer

The answer of ________ work with a few variables at...

Question 19

What directly results from disaggregation of an aggregate plan?

Accepted Answer

A)  a master production schedule
B)  priority scheduling
C)  a transportation matrix
D)  a capacity-demand matrix
E)  detailed work schedulesF) A) and E)
G) B) and E)

Question 20

"Yield management" is best described as

Accepted Answer

A)  a situation where management yields to labour demands.
B)  a situation where the labour union yields to management demands.
C)  a process designed to increase the rate of output.
D)  capacity allocation to different classes of customers in order to maximize profits.
E)  management's selection of a product mix yielding maximum profits.F) C) and E)
G) A) and D)

Exam 13: Aggregate Planning

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Correct Answer
verified
True

Correct Answer
verified
The student must consider that since 900...
View Answer

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

Correct Answer
verified

________ is the process of breaking the aggregate plan into greater detail.

Correct Answer
verified

Which of the following statements about aggregate planning is true?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The planning tasks associated with staffing,production,inventory,and sub-contracting levels typically fall under

Correct Answer
verified

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?

Which of the following is not an advantage of level scheduling?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
The yields of these price points are as ...
View Answer

Which of these aggregate planning strategies adjusts capacity to match demand?

Correct Answer
verified

Osprey Machine Works has the following demand requirements and other data for the upcoming four quarters. What is the total cost of pursuing a level aggregate plan over the coming year?

Correct Answer
verified
Requirements total 9400 units,...
View Answer

Which of these is among the demand options of aggregate planning?

Correct Answer
verified

One question that operations managers must ask when generating an aggregate plan is what factors are likely to influence demand and by how much.

Correct Answer
verified

________ work with a few variables at a time and are easy to understand and use.

Correct Answer
verified

What directly results from disaggregation of an aggregate plan?

Correct Answer
verified

"Yield management" is best described as

Correct Answer
verified

Exam 13: Aggregate Planning

One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.

Correct AnswerverifiedTrue

Correct AnswerverifiedThe student must consider that since 900...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

________ is the process of breaking the aggregate plan into greater detail.

Correct AnswerverifiedShow Answer

Which of the following statements about aggregate planning is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The planning tasks associated with staffing,production,inventory,and sub-contracting levels typically fall under

Correct AnswerverifiedShow Answer

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?

Which of the following is not an advantage of level scheduling?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe yields of these price points are as ...View AnswerShow Answer

Which of these aggregate planning strategies adjusts capacity to match demand?

Correct AnswerverifiedShow Answer

Osprey Machine Works has the following demand requirements and other data for the upcoming four quarters. What is the total cost of pursuing a level aggregate plan over the coming year?

Correct AnswerverifiedRequirements total 9400 units,...View AnswerShow Answer

Which of these is among the demand options of aggregate planning?

Correct AnswerverifiedShow Answer

One question that operations managers must ask when generating an aggregate plan is what factors are likely to influence demand and by how much.

Correct AnswerverifiedShow Answer

________ work with a few variables at a time and are easy to understand and use.

Correct AnswerverifiedShow Answer

What directly results from disaggregation of an aggregate plan?

Correct AnswerverifiedShow Answer

"Yield management" is best described as

Correct AnswerverifiedShow Answer

Correct Answer
verified
True

Correct Answer
verified
The student must consider that since 900...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The yields of these price points are as ...
View Answer

Correct Answer
verified

Correct Answer
verified
Requirements total 9400 units,...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified