Question 1

________ is a capacity option that works especially well in the service sector where labor needs are relatively unskilled.

Accepted Answer

Using part...

Question 2

Which of the following aggregate planning options is NOT associated with manipulation of product or service demand?

Accepted Answer

A)   price cuts or discounts
B)   promotion
C)   subcontracting
D)   counterseasonal products or services
E)   advertisingF) B) and E)
G) B) and D)

Question 3

Revenue management is MOST likely to be used in which one of the following situations?

Accepted Answer

A)   a fast-food restaurant with wide demand fluctuations during the day
B)   a dental clinic that wants to fill its appointment book
C)   a firm with a good counterseasonal product mix
D)   a shipping company that can change its fleet size easily
E)   an airline attempting to fill "perishable" seats at maximum revenueF) D) and E)
G) C) and E)

Question 4

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

Accepted Answer

A)   changing price
B)   subcontracting
C)   varying production levels
D)   changing inventory levels
E)   using part-time workersF) A) and E)
G) A) and D)

Question 5

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) D) and E)

Question 6

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 rates through overtime or idle timeF) C) and E)
G) A) and D)

Question 7

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

Accepted Answer

(a) Demand options are: influencing dema...

Question 8

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
  Which of the following production plans is best: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy, or Plan C-700 level with the remainder by subcontracting?

Accepted Answer

Plan A has cost of $435,000, plan B has ...

Question 9

To make revenue management work, the company needs to manage what three issues?

Accepted Answer

(1) multiple pricing structure...

Question 10

Revenue (or yield)  management is best described as:

Accepted Answer

A)   a situation where management yields to labor demands.
B)   a situation where the labor union yields to management demands.
C)   a process designed to increase the rate of output.
D)   allocation of scarce resources to customers at prices that will maximize revenue.
E)   management's selection of a product mix yielding maximum profits.F) A) and C)
G) B) and D)

Question 11

In the service sector, which of the following aggregate planning strategies might direct your client to a competitor?

Accepted Answer

A)   using part-time workers
B)   subcontracting
C)   changing inventory level
D)   varying production rates through overtime or idle time
E)   varying workforce size by hiring or layoffsF) A) and E)
G) B) and C)

Question 12

The ________ strategy sets production equal to forecasted demand.

Accepted Answer

The answer of The ________ strategy sets production equal to...

Question 13

What are successful techniques of controlling the cost of labor involved in service firms?

Accepted Answer

1. accurate scheduling of labor-hours to...

Question 14

What is the effort to plan the coordination of demand forecasts with functional areas of the firm and its supply chain?

Accepted Answer

A)   enterprise resource planning
B)   material requirements planning
C)   capacity planning
D)   sales and operations planning
E)   new product developmentF) B) and C)
G) All of the above

Question 15

Describe the advantages and limitations of the transportation method for aggregate planning.

Accepted Answer

Advantages include that it provides an o...

Question 16

To use revenue management strategies, a business should have which combination of costs?

Accepted Answer

A)   high variable and high fixed
B)   low variable and high fixed
C)   high variable and low fixed
D)   low variable and low fixed
E)   either A or BF) A) and B)
G) A) and C)

Question 17

Which of the following actions is consistent with the use of level scheduling?

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)   none of theseF) A) and D)
G) A) and E)

Question 18

Dependence on an external source of supply is found in which of the following aggregate planning strategies?

Accepted Answer

A)   varying production rates through overtime or idle time
B)   subcontracting
C)   using part-time workers
D)   back ordering during high demand periods
E)   hiring and laying offF) None of the above
G) A) and E)

Question 19

The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.

Accepted Answer

A) True 
 B)False

Question 20

Under which of the following do planning tasks associated with production planning and budgeting, as well as setting employment, inventory, and subcontracting levels, typically fall?

Accepted Answer

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

Exam 12: Aggregate Planning and Sop

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Which of the following production plans is best: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy, or Plan C-700 level with the remainder by subcontracting?

Correct AnswerverifiedPlan A has cost of $435,000, plan B has ...View AnswerShow Answer

Revenue management is MOST likely to be used in which one of the following situations?

Correct AnswerverifiedShow Answer

Dependence on an external source of supply is found in which of the following aggregate planning strategies?

Correct AnswerverifiedShow Answer

Revenue (or yield) management is best described as:

Correct AnswerverifiedShow Answer

To make revenue management work, the company needs to manage what three issues?

Correct Answerverified(1) multiple pricing structure...View AnswerShow Answer

To use revenue management strategies, a business should have which combination of costs?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

________ is a capacity option that works especially well in the service sector where labor needs are relatively unskilled.

Correct AnswerverifiedUsing part...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

What are successful techniques of controlling the cost of labor involved in service firms?

Correct Answerverified1. accurate scheduling of labor-hours to...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following aggregate planning options is NOT associated with manipulation of product or service demand?

Correct AnswerverifiedShow Answer

What is the effort to plan the coordination of demand forecasts with functional areas of the firm and its supply chain?

Correct AnswerverifiedShow Answer

Under which of the following do planning tasks associated with production planning and budgeting, as well as setting employment, inventory, and subcontracting levels, typically fall?

Correct AnswerverifiedShow Answer

The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.

Correct AnswerverifiedShow Answer

Which of the following actions is consistent with the use of level scheduling?

Correct AnswerverifiedShow Answer

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

Correct Answerverified(a) Demand options are: influencing dema...View AnswerShow Answer

The ________ strategy sets production equal to forecasted demand.

Correct AnswerverifiedShow Answer

In the service sector, which of the following aggregate planning strategies might direct your client to a competitor?

Correct AnswerverifiedShow Answer

Describe the advantages and limitations of the transportation method for aggregate planning.

Correct AnswerverifiedAdvantages include that it provides an o...View AnswerShow Answer

Correct Answer
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Plan A has cost of $435,000, plan B has ...
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(1) multiple pricing structure...
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Using part...
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1. accurate scheduling of labor-hours to...
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Correct Answer
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Correct Answer
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Correct Answer
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(a) Demand options are: influencing dema...
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Correct Answer
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Correct Answer
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Correct Answer
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Advantages include that it provides an o...
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