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One option for altering the pattern of demand is:


A) pricing differentials
B) overtime.
C) part-time workers.
D) inventories.
E) subcontracting.

F) C) and E)
G) A) and E)

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Disaggregating an aggregate plan leads to a master schedule.

A) True
B) False

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

A) True
B) False

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Which of the following is most closely associated with disaggregation?


A) subcontracting
B) master schedule
C) diversity
D) varying inventory levels
E) firing and laying off

F) All of the above
G) B) and C)

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Accommodating peak demand and effectively using labor resources during periods of low demand would be the main goals of aggregate planners in:


A) manufacturing.
B) military.
C) archeology.
D) libraries.
E) financial services.

F) A) and E)
G) A) and D)

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


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) C) and D)
G) A) and E)

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At XYZ Corp., the master schedule 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 planned aggregate production is for 10,400 units. Once the production plan is disaggregated evenly throughout the year, what will the weekly production for version A be (assume 52 weeks per year) ?


A) 1,000
B) 200
C) 400
D) 100
E) 50

F) A) and D)
G) B) and C)

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

A) True
B) False

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


A) promotion
B) backordering
C) pricing
D) subcontracting
E) All are demand options.

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

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One area in which aggregate planning decisions are made is:


A) job sequencing
B) customer order quantities
C) inventory levels
D) location
E) layout

F) B) and D)
G) A) and C)

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


A) layoffs
B) back orders
C) excess capacity
D) disaggregation
E) minimal inventory

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

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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?


A) 14
B) 32
C) 12
D) 20
E) impossible to say without more information

F) B) and C)
G) None of the above

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


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

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

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

A) True
B) False

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

A) True
B) False

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

A) True
B) False

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

A) True
B) False

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


A) Subcontract.
B) Vary the size of the workforce.
C) Schedule overtime.
D) Allow inventory levels to vary.
E) Use back orders.

F) A) and B)
G) B) and C)

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


A) rough-cut capacity planning.
B) disaggregation.
C) suboptimization.
D) strategy formulation.
E) chase strategies.

F) A) and B)
G) A) and C)

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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?


A) 21
B) 1
C) 12
D) 20
E) impossible to say without more information

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

Correct Answer

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