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115 Cards in this Set

  • Front
  • Back
High levels of efficiency at Anheuser-Busch are the result of excellence and aggregate planning and an high facility utilization.
True
Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.
True
The only objective about it planning is to minimize the cost of it of matching capacity to demand over the planning period.
False
Aggregate planning in manufacturing ties organizational strategic goals to a production plan.
True
One of the four things needed for aggregate planning is a logical overall unit for measuring sales and out put
True
plans for new product development generally fall within the scope of aggregate planning.
False
The aggregate planning process usually includes expediting and dispatching of individual products.
false
This aggregation is the process of breaking the aggregate plan into greater detail; one example of this detail is the master production schedule.
. True
One question that operations managers must ask when generating an aggregate plan is what factors are likely to influence demand and by how much.
True
One of the demand options of aggregate planning is to vary the workforce by hiring or firing.
True
The strategies of aggregate planning are broadly divided into demand options and capacity options.
True
in aggregate planning, the amount of overtime and the size of the workforce are both adjustable elements of capacity.
True
And accurate planning, one of the adjustable elements of capacity is the extent of subcontracting.
True
One motive for using demand– influencing aggregate planning options is to create uses for excess capacity within an organization
True
the use of part time workers as an aggregate planning option may be less costly than using full-time workers, but may also reduce quality levels.

true

Advertising and promotion are methods of manipulating products or service supply in aggregate planning
false
Because service firms do not inventory their output, pure Chase strategy is not appropriate
False
The level scheduling strategy allows lower inventories than the pure chase strategy
false
Mixed strategies in aggregate planning utilize inventory, workforce, and production rate changes over the planning horizon.
True
Finding an ideal mixed strategy is complicated by the huge number of possible strategies.
True
Graphical techniques are easy to understand and use, but are not well-suited for generating optimal strategies.
True
The transportation method of linear programming is in optimizing approach to aggregate planning
True
The management coefficients model is a formal planning model built around managers evidence and performance

true

Controlling the cost of labor and services involves quick response to consumer demand, on call labor for unexpected demand, flexibility of labor for reallocation, and flexibility of hours or rate of output of individual workers.

true

Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time.

true

A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishability of services inventory.

true

Which of the following statements regarding and Anheuser-Busch is false?

its aggregate planning focuses entirely on facilities, ignoring employee issues

The typical time horizon for aggregate planning is…
Three to eighteen months
Which of the following is the term used for medium-range capacity planning with a time horizon of 3 to 18 months?
Aggregate planning
Aggregate planning is capacity planning for…

range the intermediate range

Which of the following is not one of the four things needed for aggregate planning?

A mathematical model that will minimize costs over the intermediate planning period

Planning pass associated with loading, sequencing, expediting, and dispatching typically fall under…

short range plans

The planning tasks associated with staffing production inventory and subcontracting levels typically fall under…
Intermediate range plans
Which of the following statements about aggregate planning is true?

aggregate planning uses the adjustable part of capacity to meet production requirements

Which of the following statements about aggregate planning is false?
Aggregate planning producers of plans detailing which products are made and in what quantities
Disaggregation…

breaks the aggregate plan into greater detail

Dependence on an external source of supply is found in which of the following aggregate planning strategies?
Subcontracting
Which of these is among the demands options aggregate planning?
Back ordering during high demand.
Which of the following target demand planning strategies might direct your client to a competitor?

subcontracting

Which of the following aggregate planning strategies is a"capacity option"?

? Changing inventory levels

Which of these are you planning strategies adjust capacity to match demand?
Using part-time workers
Which of the following aggregate planning strategies is no one to lower employee morale?

varying workforce size by hiring or layoffs

Which of the following is not associated with manipulation of product or service demand?

subcontracting

Which of the following attempts to manipulate products or service demands?
Price cuts
Which of the following aggregate planning strategies is a"demand option"?

changing price

In aggregate planning, which one of the following is not a basic option for altering demand?

subcontracting

Which choice below best describes the counter seasonal demand option?
Developing a mix of products that smooths out their demands
Which of the following statements about aggregate planning is true?

A pure chase strategy allows lower inventories when compared to hear level scheduling

Which choice best describes level scheduling?
Inventory goes up or down to buffer the difference between demand and production
Which of the following statements regarding aggregate planning is true?
In a mixed strategy, there are changes in those inventory and in workforce and production rate
in level scheduling, what is Uniform from month-to-month?

production/workforce levels

Which of the following is not consistent with the pure level strategy?

not listening all of the above are inconsistent with the pure level strategy i.e.: burying the use of subcontracting, variable workforce levels, little or no use of inventory to meet demand requirements, Vary production levels and or workforce to meet demand requirements

Which of the following is consistent with a pure chase strategy?
All of the above are consistent with a pure chase strategy, i.e: vary production levels to meet demand requirements, very workforce to meet demand requirements, vary production levels and workforce to meet demand requirements, little or no use of inventory to meet demand requirements
Which of the following is not an advantage of level scheduling?
Matching production exactly with sales
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.(It's aggregate planning horizon) is estimated to average 900 units. And following the Chase strategy, the firm well…
Farmworkers to make up the 200 unit difference
Affirms demand in the next four quarters (it's aggregate planning horizon) is forecasted to be 80, 50, 40, and 90 units. Last quarter, the firm produce 60 units. If it uses level scheduling, the firm well…
Hire workers to permit production of 65 units per quarter for the next four quarters
Which of the following actions is consistent with the use of pure level strategy?
Use inventory to meet demand requirements
"And optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes…
The transportation method
Of firm uses graphical techniques in its aggregate planning efforts. Over the next 12 months (it's intermediate.) It estimates the sum of demand to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that…

level production of 420 units per day is below the January requirement

Of firm practices that pure Chase strategy. Production last quarter was 1000. Demands over the next four quarters is estimated to be 900-700-1000 and 1000. Hiring cost is $20 per unit, and firing cost is five dollars per unit. Over the next year the sum of hiring and firing cost will be…

7500

Which of the following aggregate planning models is based primarily upon a manager's past experience?
The management coefficients model
Which of the following aggregate planning methods does not work is hiring and layoffs are possible?
The transportation method
Which of the following uses regression to incorporate historical managerial performance into aggregate planning?
Management coefficients model
Which of the following is not an ingredient for controlling labor cost and services?

contract overseas labor to obtain a lower wage scale

Which of the following statements regarding aggregate planning and services is false?

level scheduling is far more common than Chase.

Aggregate planning for service firms that provide in tangible output deals mainly with…
Planning for human resource requirements and managing demand
Yield management is most likely to be used in which of the following situations?

an airline attempting to fill"perishable" seats at maximum revenue

Yield management is best described as…

capacity allocation to a different classes of customers in order to maximize profits

Which of these is not a characteristic that makes yield management attractive?

capacity is easily changed

… Is an approach to determine the quantity and timing of production for the intermediate future.

aggregate planning

… Is the process of breaking the aggregate plan into greater detail.
disaggregations
… Is the result of the disaggregation of the aggregate plan
Master production schedule
… Is a capacity option that works especially well in the service sector where labor needs are relatively unskilled

using part-time workers

using developing a mix of… Products is a widely used demand smoothing technique
Counter seasonal
the… Strategy sets production equal to forecasted demand
Chase
The… Strategy maintains a constant output rate, or work force level, over the planning horizon
Level
… Works with a few variables at a time and are easy to understand and use.

graphical methods

Among the mathematical approaches to aggregate planning,… Is good at working with inventories, holding costs, overtime, and subcontracting, but not with hiring and firing.

the transportation method or linear programming

The… As a formal planning model built around a managers experience and performance.

management coefficients model

… Is a complex aggregate planning technique, using models that maybe difficult to build and for managers to understand.

simulation

Of a hotel room that goes unrented, a dental appointment that no patient booked, and an airline seat that went unsold, are all examples of… In the service industry.

perishability

… Involves capacity decisions that determine the allocation of classes of resources in order to maximize profit or yield

yield management

Aggregate planning would entail which of the following production aspects of BMW for 12 month period?

total number of cars to produce

What is the primary aggregate planning vehicle in service industries?

Labor labor

One motive for using demand…

influencing aggregate planning option is to create uses for excess capacity within an organization

Alternative name for revenue management?
Yield management
What is not true about S and OP?
Also called aggregate plan
What is not true regarding aggregate plans?

use information regarding products rather than product lines

What results in the least amount of inventory?
chase strategy
industries traditionally associated with revenue management operate in which quadrant of the revenue management matrix?
Quadrant two: price tends to be variable; use tends to be predictable
Transportation method of linear programming requires…

cost factors to be linear and positive positive

What is not true regarding the planning process?
Job scheduling is made as part of intermediate plans
Capacity decisions are the most critical to which?

long-range plans

What is not a demand option of aggregate planning?
Using part-time workers
what is the process of breaking an aggregate plan into greater detail?

disaggregation

What makes aggregate planning particularly complex in the airline industry?

the large number of dependents site

Occurs first within the product planning system?

aggregate planning

Plans that are the job of the operations manager, working with other functional areas of the firm?

intermediate intermediate plans

Job assignments are focused issue in which of the following?

short range plans

Aggregate planning is concerned with determining the quantity and timing of production in the…

intermediate-term

Planning tasks associated with production planning and budgeting as well as setting employment inventory and subcontracting levels typically fall?

intermediate range plans

dependence on an external source of supply is found in which planning strategy?

subcontracting

Aggregate planning option is not associated with manipulation of product or service demand?

subcontracting

Counter seasonal product demand option

developing a mix of products that smooths out their demands

Not one of the features that an S&OP process needs to generate a useful aggregate plan?
The forecast of the man for a reasonable long-term planning. An aggregate terms
Not true regarding the master production schedule

is a sales forecast

objective of aggregate planning is usually too…

meet forecast demand while minimizing costs over the planning period

Not capacity option of aggregate planning?
Back ordering during high demand.
Characteristic of the mix strategy for aggregate planning?

mixed plans seek a minimum cost be a combination of a planning option

First step in the graphical method for aggregate planning
Determined demand in each period
Successful techniques to control the cost of labor and service firms do not include…

flexibility and rate of output or hours or work to meet changing supply and little flexibility in work hours just to decrease the burden on management

And a service business with high variable demand, the general approach to aggregate scheduling does not involve…
Depleting inventory during slack periods
What is false regarding aggregate planning and services?
Level scheduling is far more common than using a Chase strategy
Yield management is of interest organizations having the characteristics of…

segmentable demand

For organizations that have perishable inventory, which of the following characteristics would not make yield management of interest?

Service or product cannot be sold in advance of consumption