Question 1

Consider the following information: $$\begin{array} { l l l } 
\text { Period } & \text { Forecast } \
\hline   1 & 200 & \
2 & 200 & \
3 & 300 & \
4 & 400 & \
5 & 500 & \
6 & 200 & \
\text { Regular Time: } & \$ 20 \text { per unit ( } 280 \text { units per period maximum) } \
\text { Overtime: } & \$ 30 \text { per unit (40 units per period maximum) } \
\text { Subcontracting: } & \text { None available } \
\text { Beginning Inventory: } & \text { None } \
\text { Carrying Cost: } & \$ 1 \text { per unit per period } \
\text { Backorder Cost: } & \$ 5 \text { per unit per period }
\end{array}$$ What are total overtime costs?

Accepted Answer

The answer of Consider the following information: \[\begin{array} { l...

Question 2

Uncommitted inventory is called:

Accepted Answer

A)   available-to-promise inventory.
B)   free inventory.
C)   safety stock.
D)   lead time inventory.
E)   obsolete inventory.F) All of the above
G) D) and E)

Question 3

The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

Accepted Answer

A) True 
 B)False

Question 4

Proactive and reactive aggregate planning strategies are best associated with:

Accepted Answer

A)   input and output.
B)   make and buy.
C)   quantitative and qualitative.
D)   exact and approximate.
E)   demand and capacity options.F) B) and E)
G) All of the above

Question 5

Consider the following information: $$\begin{array} { l l l } 
\text { Period } & \text { Forecast } \
\hline   1 & 200 & \
2 & 200 & \
3 & 300 & \
4 & 400 & \
5 & 500 & \
6 & 200 & \
\text { Regular Time: } & \$ 20 \text { per unit ( } 280 \text { units per period maximum) } \
\text { Overtime: } & \$ 30 \text { per unit (40 units per period maximum) } \
\text { Subcontracting: } & \text { None available } \
\text { Beginning Inventory: } & \text { None } \
\text { Carrying Cost: } & \$ 1 \text { per unit per period } \
\text { Backorder Cost: } & \$ 5 \text { per unit per period }
\end{array}$$ What is total regular time capacity?

Accepted Answer

The answer of Consider the following information: \[\begin{array} { l...

Question 6

Which of the following is most closely associated with disaggregation?

Accepted Answer

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

Question 7

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

Accepted Answer

A) True 
 B)False

Question 8

Subcontracting "in" would apply to periods in which our organization has excess capacity.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a basic option for altering the availability of capacity in a service environment?

Accepted Answer

A)   overtime
B)   hiring/layoff
C)   part time
D)   inventory
E)   All of the choices are options.F) C) and D)
G) B) and E)

Question 10

In order to use the level capacity strategy, variations in demand are met by:

Accepted Answer

A)   varying output during regular time without changing employment levels.
B)   varying output during regular time by changing employment levels.
C)   varying output by changing overtime levels.
D)   using combination of inventories, overtime, part time, and back orders.
E)   price adjustments.F) C) and D)
G) A) and B)

Question 11

In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

Accepted Answer

A) True 
 B)False

Question 12

Linear programming to produce an aggregate plan:

Accepted Answer

A)   will produce the best plan if accurate inputs are used.
B)   is the most widely used technique.
C)   is easy to implement.
D)   will produce a plan that may not be the best plan.
E)   requires an Excel spreadsheet.F) A) and B)
G) A) and C)

Question 13

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

Accepted Answer

A)   customer
B)   staff
C)   inventory
D)   subcontracting
E)   outsourcingF) A) and E)
G) A) and D)

Question 14

Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and back orders. The plan must wind up with no units in ending inventory in period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is $30 per unit, back order cost is $20 per unit, inventory holding cost is $5 per unit, regular time cost is $20 per unit, and beginning inventory is zero. $$\begin{array} { l l } 
\text { Month } & \text { Forecast } \
\hline 1 & 180 \
2 & 170 \
3 & 140 \
4 & 150 \
5 & 130 \
6 & 150
\end{array}$$

Accepted Answer

The aggregate plan should look like this...

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

One option for altering the availability of manufacturing capacity is:

Accepted Answer

A)   pricing.
B)   promotion.
C)   back orders.
D)   inventories.
E)   yield management.F) A) and D)
G) None of the above

Question 17

Using dynamic pricing in response to capacity variability to ensure that perishable inventory is not wasted is known as:

Accepted Answer

A)   yield management.
B)   profit minimization.
C)   capacity loading.
D)   demand optimization.
E)   perishability avoidance.F) None of the above
G) B) and E)

Question 18

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)   I, II, and IV only
B)   I and III only
C)   III only
D)   II and III only
E)   II, III, and IV onlyF) B) and E)
G) All of the above

Question 20

Which of the following is not an input to the aggregate planning process?

Accepted Answer

A)   resources available
B)   demand forecast
C)   policies on workforce changes
D)   master production schedules
E)   cost informationF) All of the above
G) A) and B)

Exam 11: Aggregate Planning and Master Scheduling

Correct Answer
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Correct Answer
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The aggregate plan should look like this...
View Answer

Using dynamic pricing in response to capacity variability to ensure that perishable inventory is not wasted is known as:

Correct Answer
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Correct Answer
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Which of the following is not a basic option for altering the availability of capacity in a service environment?

Correct Answer
verified

Uncommitted inventory is called:

Correct Answer
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Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

Correct Answer
verified

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

Correct Answer
verified

The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

Correct Answer
verified

Proactive and reactive aggregate planning strategies are best associated with:

Correct Answer
verified

One option for altering the availability of manufacturing capacity is:

Correct Answer
verified

Which of the following is most closely associated with disaggregation?

Correct Answer
verified

Subcontracting "in" would apply to periods in which our organization has excess capacity.

Correct Answer
verified

Linear programming to produce an aggregate plan:

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not an input to the aggregate planning process?

Correct Answer
verified

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

Correct Answer
verified

In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

Correct Answer
verified

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

Correct Answer
verified

In order to use the level capacity strategy, variations in demand are met by:

Correct Answer
verified

Exam 11: Aggregate Planning and Master Scheduling

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe aggregate plan should look like this...View AnswerShow Answer

Using dynamic pricing in response to capacity variability to ensure that perishable inventory is not wasted is known as:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not a basic option for altering the availability of capacity in a service environment?

Correct AnswerverifiedShow Answer

Uncommitted inventory is called:

Correct AnswerverifiedShow Answer

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

Correct AnswerverifiedShow Answer

Proactive and reactive aggregate planning strategies are best associated with:

Correct AnswerverifiedShow Answer

One option for altering the availability of manufacturing capacity is:

Correct AnswerverifiedShow Answer

Which of the following is most closely associated with disaggregation?

Correct AnswerverifiedShow Answer

Subcontracting "in" would apply to periods in which our organization has excess capacity.

Correct AnswerverifiedShow Answer

Linear programming to produce an aggregate plan:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not an input to the aggregate planning process?

Correct AnswerverifiedShow Answer

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

Correct AnswerverifiedShow Answer

In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

Correct AnswerverifiedShow Answer

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

Correct AnswerverifiedShow Answer

In order to use the level capacity strategy, variations in demand are met by:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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The aggregate plan should look like this...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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