Operations Management Chapter 13

Which of these aggregate planning strategies adjusts capacity to match​ demand? A. using​ part-time workers B. changing price C. counterseasonal product mixing D. back ordering E. None of the above is a capacity option.

using​ part-time workers

Which of the following aggregate planning strategies is known to lower employee​ morale? A. yield management B. back ordering during high demand periods C. changing inventory levels D. counterseasonal product and service mixing E. varying work force size by hiring or layoffs

varying work force size by hiring or layoffs

The planning tasks associated with​ staffing, production,​ inventory, and​ sub-contracting levels typically fall under A. ​short-range plans. B. strategic planning. C. ​intermediate-range plans. D. demand options. E. ​long-range plans.

​intermediate-range plans.

Top executives tend to focus their attention on which type of​ forecasts? A. weather B. ​short-range C. the forecast for the next​ day's absentee levels D. ​medium-range E. ​long-range

​long-range

In level​ scheduling, what is kept uniform from month to​ month? A. inventory levels B. subcontracting levels C. demand levels D. product mix E. ​production/workforce levels

​production/workforce levels

Planning tasks associated with​ loading, sequencing,​ expediting, and dispatching typically fall under A. strategic planning. B. ​long-range plans. C. ​intermediate-range plans. D. ​short-range plans. E. ​mission-related planning.

​short-range plans.

Which of the following statements regarding aggregate planning is true​? A. Because service firms have no​ inventory, the pure chase strategy does not apply. B. A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies. C. In a mixed​ strategy, there are changes in both inventory and in work force and production rate over the planning horizon. D. In a pure level​ strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon. E. All of the above are true.

In a mixed​ strategy, there are changes in both inventory and in work force and production rate over the planning horizon.

What directly results from disaggregation of an aggregate​ plan? A. a​ capacity-demand matrix B. a transportation matrix C. a master production schedule D. priority scheduling E. detailed work schedules

a master production schedule

Which of the following aggregate planning strategies is a​ "demand option"? A. subcontracting B. varying production levels C. changing inventory levels D. changing price E. using​ part-time workers

changing price

The typical time horizon for aggregate planning is A. up to 3 months. B. over one year. C. 3 to 18 months. D. less than a month. E. over 5 years.

3-18 months

Which of the following statements about aggregate planning is true​? A. A pure chase strategy allows lower inventories when compared to pure level scheduling. B. In aggregate​ planning, back orders are a means of manipulating supply while​ part-time workers are a way of manipulating product or service demand. C. Disaggregation turns the master production schedule into an intermediate term master plan. D. The development of mathematical models has allowed aggregate planners to discontinue use of​ trial-and-error methods. E. All of the above are true.

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

Which of the following statements about aggregate planning is false​? A. Yield management is a way of manipulating product or service demand. B. Aggregate planning produces a plan detailing which products are made and in what quantities. C. Aggregate planning uses the adjustable part of capacity to meet production requirements. D. ​Hiring, layoffs,​ overtime, and subcontracting are methods of manipulating capacity. E. The transportation method is an optimizing technique for aggregate planning.

Aggregate planning produces a plan detailing which products are made and in what quantities.

Which of the following statements about aggregate planning is true​? A. Aggregate planning uses the adjustable part of capacity to meet production requirements. B. Work station loading and job assignments are examples of aggregate planning. C. ​Advertising/promotion is a way of manipulating product or service supply. D. ​Overtime/idle time is a way of manipulating product or service demand. E. All of the above are true.

Aggregate planning uses the adjustable part of capacity to meet production requirements.

Which of the following inputs helps an aggregate planner select the rate of output for a facility over the next 3 to 18​ months? A. demand forecasts B. facility capacity C. inventory on hand D. workforce size E. All of the above.

All of the above.

Which choice best describes level​ scheduling? A. Inventory goes up or down to buffer the difference between demand and production. B. Price points are calculated to match demand to capacity. C. ​Subcontracting, hiring, and layoffs manipulate supply. D. Daily production is variable from period to period. E. Seasonal demand fluctuations are matched without hirings or layoffs.

Inventory goes up or down to buffer the difference between demand and production.

Which of the following is not one of the four things needed for aggregate​ planning? A. a mathematical model that will minimize costs over the intermediate planning period B. a logical overall unit for measuring sales and output C. a method for determining​ costs, such as​ hiring, layoffs, and inventory​ costs, associated with production schedules D. an aggregate demand forecast for an intermediate planning period E. All of these are needed for aggregate planning.

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

Disaggregation A. converts product schedules and labor assignments to a​ facility-wide plan. B. transforms the master production schedule into an aggregate plan. C. is an assumption required for the use of the transportation model in aggregate planning. D. breaks the aggregate plan into greater detail. E. calculates the optimal price points for yield management.

breaks the aggregate plan into greater detail.

Which choice below best describes the counterseasonal demand​ option? A. lowering prices when demand is slack B. developing a mix of products that smoothes out their demands C. the breaking of the aggregate plan into finer levels of detail D. using subcontractors only when demand is excessive E. producing such products as lawnmowers and sunglasses during the winter

developing a mix of products that smoothes out their demands

Frito-Lay uses aggregate planning to match capacity with demand because of the​ __________ associated with its specialized processes. A. high variable cost and high fixed cost B. low variable cost and low fixed cost C. high variable cost and low fixed cost D. low variable cost and high fixed cost E.None of the above.

low variable/high fixed

The objective of aggregate planning is to meet demand while​ __________ over the planning period. A. minimizing stock out B. minimizing fixed cost C. minimizing cost D. maximizing service level E. All of the above.

minimizing cost

Which of the following attempts to manipulate product or service​ demand? A. ​part-time workers B. subcontracting C. inventories D. price cuts E. ​overtime/idle time

price cuts

Which of the following would most likely fall under the scope of only an operations​ manager? A. facility location and expansion B. setting inventory levels C. capital investments D. research and development E. new product plans

setting inventory levels

Dependence on an external source of supply is found in which of the following aggregate planning​ strategies? A. back ordering during high demand periods B. using​ part-time workers C. varying production rates through overtime or idle time D. hiring and laying off E. subcontracting

subcontracting

In aggregate​ planning, which one of the following is not a basic option for altering​ demand? A. pricing B. back ordering C. promotion D. subcontracting E. All are demand options.

subcontracting

Which of the following is not associated with manipulation of product or service​ demand? A. promotion B. subcontracting C. counterseasonal products or services D. advertising E. price cuts or discounts

subcontracting

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

the intermediate range

Aggregate planning would entail which of the following production aspects at BMW for a 12 month​ period? A. number of cars with a​ hi-fi stereo system to produce B. number of ​ two-door vs.​ four-door cars to produce C. number of green cars to produce D. total number of cars to produce E. ​B, C, and D

total number of cars to produce