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The transportation method of linear programming is an optimizing approach to aggregate planning.

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


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 work force to meet demand requirements
E) none of the above

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Under which of the following do planning tasks associated with job assignments,ordering,job scheduling,and dispatching typically fall?


A) short-range plans
B) intermediate-range plans
C) long-range plans
D) mission-related planning
E) strategic planning

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Mixed strategies in aggregate planning may utilize inventory,work force,and production rate changes over the planning horizon.

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True

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. 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? 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?

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Plan A has cost of $378,000,plan B has c...

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Disaggregation is the process of breaking the aggregate plan into greater detail;one example of this detail is the master production schedule.

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Which of these aggregate planning strategies is a capacity option?


A) back ordering
B) using part-time workers
C) counterseasonal product mixing
D) changing price
E) promotion

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The strategies of aggregate planning are broadly divided into demand options and capacity options.

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The objective of aggregate planning is to meet forecast demand while ________ over the planning period.


A) minimizing cost
B) maximizing service level
C) minimizing stock out
D) minimizing fixed cost
E) all of the above

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The textbook illustrates demand management in the form of price cuts or discounts.Can demand manipulation for aggregate planning involve price increases? Explain;provide an example.

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The text did allude to price increases w...

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One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.

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Which of the following aggregate planning methods does not work if hiring and layoffs are possible?


A) the linear decision rule
B) simulation
C) the management coefficients model
D) the transportation method
E) graphical methods

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Which choice best describes level scheduling?


A) Daily production is variable from period to period.
B) Subcontracting,hiring,and layoffs manipulate supply.
C) Price points are calculated to match demand to capacity.
D) Inventory goes up or down to buffer the difference between demand and production.
E) Overtime is used to handle seasonal demand fluctuations.

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D

Which choice below best describes the counterseasonal product demand option?


A) producing such products as lawnmowers and sunglasses during the winter
B) developing a mix of products that smoothes out their demands
C) lowering prices when demand is slack
D) using subcontractors only when demand is excessive
E) the breaking of the aggregate plan into finer levels of detail

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

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________ involves capacity decisions that determine the allocation of resources to maximize revenue or yield.

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Revenue ma...

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A large consulting firm is deciding on if its workforce should be expanded,maintained,or decreased.Suppose that demand is given in week-long projects,and that a consultant can work on 3 projects each month (1 week off for personal leave and/or other duties such as conferences,etc).Currently there are 25 consultants.Ten consultants are trained for LEAN and 15 for Six Sigma,with 5 of those consultants being overlaps (the consultant is trained for BOTH LEAN and Six Sigma).Assume that all consultants can do the general work.Complete the table (the forecast period is an upcoming month)and prepare a recommendation. A large consulting firm is deciding on if its workforce should be expanded,maintained,or decreased.Suppose that demand is given in week-long projects,and that a consultant can work on 3 projects each month (1 week off for personal leave and/or other duties such as conferences,etc).Currently there are 25 consultants.Ten consultants are trained for LEAN and 15 for Six Sigma,with 5 of those consultants being overlaps (the consultant is trained for BOTH LEAN and Six Sigma).Assume that all consultants can do the general work.Complete the table (the forecast period is an upcoming month)and prepare a recommendation.

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blured image NOTE: Student responses will vary but s...

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Developing a mix of ________ products is a widely used demand smoothing technique.

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A firm uses the pure chase strategy of aggregate planning.It produced 1000 units in the last period.Demand in the next period is estimated at 800,and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units.Which of the following tactics would be most representative of following a chase strategy?


A) add 100 units to inventory in the next period
B) add 200 units to inventory in the next period
C) hire workers to match the 100-unit difference
D) lay off workers to match the 200-unit difference
E) implement a lower price point to increase demand

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Finding an ideal mixed strategy is complicated by the huge number of possible strategies.

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True

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