OM Chapter 11

Which of the following best describes aggregate planning? A. the link between intermediate term planning and short term operating decisions B. a collection of objective planning tools C. make or buy decisions D. an attempt to respond to predicted demand within the constraints set by product, process and location decisions E. manpower planning

Accommodating peak demands and effectively using labor resources during periods of low demand would be the goal of aggregate planners in A. Manufacturing B. Military C. Archeology D. Libraries E. Financial Services

Aggregate planning is capacity planning for: A. the long range B. the intermediate range C. the short range D. typically one to three months E. typically one or more years

One area to which aggregate planning decisions relate is: A. job sequencing B. customer order quantities C. inventory levels D. location E. layout

Which of the following is an input to aggregate planning? A. beginning inventory B. forecasts for each period of the schedule C. customer orders D. all of the above E. quantity discounts

Essentially, the output of aggregate planning is the: A. marketing plan B. production plan C. rough-cut capacity plan D. assignment plan E. material requirements plan

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. none of the above

Aggregate planning requires which of the following information? A. a forecast of expected demand B. current levels of inventory C. (a) and (b) D. policies regarding employment levels E. all of the above

Aggregate planners attempt to balance: A. demand and inventories B. demand and costs C. capacity and inventories D. capacity and costs E. capacity and demand

Which of the following is not an input to the aggregate planning process? A. resources available B. demand forecast C. policies on work force changes D. master production schedules E. cost information

Which one of the following would not be considered a decision option for purposes of aggregate planning? A. inventory levels B. manpower levels C. pricing D. production costs E. promotion

Which of the following is not a basic option for altering the availability of capacity in a service environment? A. overtime B. hiring/layoff C. part time D. inventory E. All of these are basic capacity options.

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.

One option for altering the pattern of demand is: A. backorders B. overtime C. part-time workers D. inventories E. subcontracting

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. vary the intensity of workforce utilization D. allow inventory levels to vary E. use backorders

One option for altering the availability of manufacturing capacity is: A. pricing B. promotion C. backorders D. inventories E. none of the above apply to manufacturing capacity

One option for altering the availability of capacity is: A. use of overtime or slack time B. pricing C. promotion D. backorders E. none of the above

In order to use the "level capacity strategy," variations in demand are met by: A. varying output during regular time without changing employment levels B. varying output during regular time by changing employment levels C. (a) and (b) D. using combination of inventories, overtime, part time, and back orders E. price adjustments

In using the "chase strategy" variations in demand could be met by: A. varying output during regular time without changing employment levels B. varying output during regular time by changing employment levels C. (a) and (b) D. varying inventory levels E. price increases

Uncommitted inventory is called A. Available-to-promise inventory B. Free inventory C. Safety stock D. Lead time inventory E. Obsolete inventory

Aggregate planners seek to match supply and demand: A. at minimum overall cost B. by staying within company policy C. (a) and (b) D. keeping inventories at a minimum E. all of the above

In practice, the more commonly used techniques for aggregate planning are: A. mathematical techniques B. informal trial-and-error techniques C. (a) and (b) about equally D. simulation models E. linear programming optimization

The main disadvantage(s) of informal techniques used for aggregate planning is(are): A. they are expensive to do B. they may not result in the best plan C. they take a long time to do D. they require use of a computer E. lack of formal education of the planners

Linear programming to produce an aggregate plan: A. will produce the best plan if accurate inputs are used B. is the most widely used technique C. (a) and (b) D. will produce a plan that may not be the best plan E. requires an excel spread sheet

Simulation to produce an aggregate plan: A. will produce the best plan B. is the most widely used technique C. both (a) and (b) D. will produce a plan that may not be the best plan E. requires a minimum of 4 iterations to be accurate

Which term is most closely associated with the term disaggregation? A. subcontracting B. master schedule C. diversity D. varying inventory levels E. firing and laying off

The direct result of disaggregating the aggregate plan is the: A. marketing plan B. production plan C. rough-cut capacity plan D. master schedule E. material requirements plan

Moving from the aggregate plan to a master production schedule requires: A. rough cut capacity planning B. disaggregation C. sub-optimization D. strategy formulation E. chase strategies

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is: A. beginning inventory B. safety stock inventory C. available-to-promise inventory D. high margin inventory E. none of the above

Proactive and Reactive aggregate planning strategies are best associated with: A. Input and Output B. Make and Buy C. Quantitative and Qualitative D. Exact and Approximate E. Demand and Capacity options