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Exam 11: Aggregate Planning and Master Scheduling

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Question 31

Multiple Choice

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In using the chase strategy, variations in demand could be met by

A) promotions.
B) varying output during regular time by changing employment levels.
C) varying inventory levels.
D) using some combination of inventories, overtime, part-time, subcontracting, and back orders.
E) price adjustments.

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Question 32

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One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is

A) inventory is cheaper to hold.
B) labor availability is more predictable.
C) inventory is less perishable.
D) labor is more flexible.
E) demand is less variable.

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Question 33

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

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

Which of the following are typically in play in a circumstance in which yield management is worthwhile? (I) Perishable capacity(II) Ample finished goods storage(III) Demand variability(IV) Low holding costs

The assignment of work to specific machines and people are examples of aggregate planning.

Disaggregating an aggregate plan leads to a master schedule.

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

Which one of the following would not be considered a decision option for purposes of aggregate planning?

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 quantity is available for commitment to new customers in either of the first two periods?

Information for firm ABC What is the expected inventory at the end of April 2008?

The direct result of disaggregating the aggregate plan is the

In practice, the more commonly used techniques for aggregate planning are

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is

Contract workers are also known by this name

Essentially, the output of aggregate planning is the

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?

Uncommitted inventory is called

Information for firm ABC What was the inventory at the end of March 2008?

Aggregate planners are concerned with the quality and quantity of expected demand.