ISDS 3115 CH 13
Industries traditionally associated with revenue management operate in which quadrant of the Revenue Management Matrix? A. Quadrant 2: price tends to be variable; use tends to be predictable. B. Quadrant 1: price tends to be fixed; use tends to be predictable. C. Quadrant 3: price tends to be fixed; use tends to be uncertain. D. Quadrant 4: price tends to be variable; use tends to be uncertain.
A
What is the process of breaking an aggregate plan into greater detail? A. disaggregation B. aggregation C. S&OP D. decomposition
A
Which choice below best describes the counterseasonal product demand option? A. developing a mix of products that smoothes out their demands B. producing such products as lawnmowers and sunglasses during the winter C. the breaking of the aggregate plan into finer levels of detail D. lowering prices when demand is slack E. using subcontractors only when demand is excessive
A
Which of the following aggregate planning options attempts to manipulate product or service demand? A. price cuts B. overtime/idle time C. inventories D. part-time workers E. subcontracting
A
Which of the following aggregate planning options is NOT associated with manipulation of product or service demand? A. subcontracting B. price cuts or discounts C. counterseasonal products or services D. promotion E. advertising
A
Which of the following aggregate planning strategies is a capacity option? A. changing inventory levels B. counterseasonal product mixing C. influencing demand by extending lead times D. influencing demand by changing price E. influencing demand by back ordering
A
Which of the following plans are the job of the operations manager, working with other functional areas of the firm? A. intermediate plans B. long-range plans C. short-range plans D. All three: short-range, intermediate, and long-range plans.
A
Which of the following statements regarding aggregate planning is TRUE? A. Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon. B. Because service firms have no inventory, the chase strategy does not apply. C. A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies. D. A disadvantage of the option of changing inventory levels is that it forces abrupt production changes. E. In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon.
A
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. total number of cars to produce C. number of green cars to produce D. number of two-door vs. four-door cars to produce E. B, C, and D
B
In a service business with a highly variable demand, the general approach to aggregate scheduling does NOT involve A. using labor to accommodate most of the changes in demand. B. depleting inventory during slack periods. C. depleting inventory during peak periods. D. building very modest levels of inventory during slack periods.
B
In level scheduling, what is kept uniform from month to month? A. sub-contracting levels B. production/workforce levels C. product mix D. inventory levels E. demand levels
B
In the service sector, which of the following aggregate planning strategies might direct your client to a competitor? A. varying production rates through overtime or idle time B. subcontracting C. changing inventory level D. using part-time workers E. varying work force size by hiring or layoffs
B
The transportation method of linear programming requires that A. the number of rows be less than the number of columns. B. cost factors be linear and positive. C. beginning inventory be zero. D. ending inventory be zero.
B
Top executives tend to focus their attention on which type of forecasts? A. weather B. long-range C. intermediate-range D. the forecast for the next day's absentee levels E. short-range
B
What directly results from disaggregation of an aggregate plan? A.a capacity-demand matrix B. a master production schedule C. priority scheduling D. a transportation matrix E. detailed work schedules
B
What is the first step in the graphical method for aggregate planning? A. Determine capacity for regular time, overtime, and subcontracting each period. B. Determine the demand in each period. C. Consider company policy that may apply to the workers or to stock levels. D. Find labor costs, hiring and layoff costs, and inventory holding costs.
B
Which choice best describes level scheduling? A. Overtime is used to handle seasonal demand fluctuations. B. Inventory goes up or down to buffer the difference between demand and production. C. Price points are calculated to match demand to capacity. D. Subcontracting, hiring, and layoffs manipulate supply. E. Daily production is variable from period to period.
B
Which of the following is NOT a demand option of aggregate planning? A. back ordering during high-demand periods B. using part-time workers C. counterseasonal product and service mixing D. influencing demand
B
Which of the following is NOT one of the features that an S&OP process needs to generate a useful aggregate plan? A. A logical unit for measuring sales and output. B. A forecast of demand for a reasonable long-term planning period in aggregate terms. C. A method to determine the relevant costs. D. A model that combines forecasts and costs.
B
Which of the following statements is NOT true about S&OP? A. When the resources appear to be substantially at odds with market expectations, S&OP provides advanced warning to top management. B. S&OP is also called an aggregate plan. C. S&OP is typically done by cross-functional teams that align competing constraints. D. S&OP is used to determine which plans are feasible in the coming months and which are not.
B
Which of the following statements is NOT true regarding aggregate plans? A. For service organizations, an aggregate schedule ties strategic goals to workforce schedules. B. Aggregate plans use information regarding individual products rather than product lines. C. An aggregate plan is the output of S&OP. D. An aggregate plan often examines a 3- to 18-month time horizon.
B
Which of the following statements is NOT true regarding the planning process? A. Short-range plans are the responsibility of operations personnel. B. Job scheduling is made as part of intermediate plans. C. Long-range plans require policies and strategies related to issues such as capacity and capital investment, facility location, new products and processes, and supply chain development. D. Short-range plans are usually for less than 3 months
B
Which of the following would likely result in the LEAST amount of inventory? A. level strategy B. chase strategy C. mixed strategy D. Inventory levels are unaffected by the aggregate plan.
B
Yield management is of interest to organizations having the characteristic of A. high variable costs. B. segmentable demand. C. low fixed costs. D. stable demand.
B
Disaggregation: A. converts product schedules and labor assignments to a facility-wide plan. B. breaks the aggregate plan into greater detail. C. calculates the optimal price points for yield management. D. is an assumption required for the use of the transportation model in aggregate planning. E. transforms the master production schedule into an aggregate plan.
B
Aggregate planning for service firms that provide intangible output deals mainly with: A. centralized purchasing. B. capital investment decisions. C. planning for human resource requirements and managing demand. D. smoothing the production rate and finding the optimal size of the workforce. E. centralized production.
C
Job assignments are a focused issue in which of the following? A. long-range plans B. intermediate plans C. short-range plans D. sales and operations planning
C
What is an alternative name for revenue management? A. price and demand management B. cash flow management C. yield management D. income management
C
What is the primary aggregate planning vehicle in service industries? A. inventory B. management C. labor D. capital
C
What makes aggregate planning particularly complex in the airline industry? A. union rules B. significant hiring costs C. the large number of dependent sites D. the large capital investment cost of each airplane
C
Which of the following occurs first within a production planning system? A. detailed work schedules for people B. priority scheduling for products C. aggregate planning D. master production schedule
C
Which of these aggregate planning strategies is a capacity option? A. promotion B. counterseasonal product mixing C. using part-time workers D. changing price E. back ordering
C
A firm uses the 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 periods (its aggregate planning horizon) is estimated to average 900 units. Which of the following tactics would be most representative of following a chase strategy? A. add 100 units to inventory in the next period B. implement a lower price point to increase demand C. hire workers to match the 100-unit difference D. lay off workers to match the 200-unit difference E. add 200 units to inventory in the next period
D
Aggregate planning is concerned with determining the quantity and timing of production in the A. long term. B. next term. C. short term. D. intermediate term.
D
Capacity decisions are most critical to which of the following? A. sales and operations planning B. intermediate plans C. short-range plans D. long-range plans
D
In aggregate planning, which one of the following is not a basic option for altering demand? A. pricing B. personal selling C. promotion D. subcontracting E. back ordering
D
Revenue management is MOST likely to be used in which one of the following situations? A. a firm with a good counterseasonal product mix B. a shipping company that can change its fleet size easily C. a fast food restaurant with wide demand fluctuations during the day D. an airline attempting to fill "perishable" seats at maximum revenue E. a dental clinic that wants to fill its appointment book
D
Successful techniques to control the cost of labor in service firms do NOT include: A. An on-call labor resource that can be added or deleted to meet unexpected demand. B. Accurate scheduling of labor-hours to assure quick response to customer demand. C. Flexibility of individual worker skills that permits reallocation of available labor. D. Flexibility in rate of output or hours of work to meet changing supply.
D
The objective of aggregate planning is to meet forecast demand while ________ over the planning period. A. minimizing stock out B. minimizing fixed cost C. maximizing service level D. minimizing cost E. all of the above
D
The objective of aggregate planning is usually to A. to determine which plans are feasible in the coming months and which are not. B. specify what is to be made and when. C. provide input to material requirements planning systems. D. meet forecast demand while minimizing cost over the planning period.
D
Which of the following is NOT a capacity option of aggregate planning? A. subcontracting B. changing inventory levels C. varying production rates through overtime or idle time D. back ordering during high-demand periods
D
Which of the following is NOT consistent with level scheduling? A. using built-up inventory to meet demand requirements B. varying the use of subcontracting C. finding alternative work for employees during low-demand periods D. varying production levels and/or work force to meet demand requirements E. All of the above are inconsistent with the pure level strategy.
D
Which of the following statements is NOT true regarding the master production schedule? A. The master production schedule is a result of disaggregation. B. The master production schedule provides input to material requirements planning systems. C. The master production schedule is a timetable that specifies what is to be made and when. D. The master production schedule is a sales forecast.
D
Which statement is characteristic of a mixed strategy for aggregate planning? A. Mixed plans are less complex to develop than a level plan. B. Mixed plans are less complex to develop than a chase plan. C. Mixed plans typically yield a worse strategy than a pure plan. D. Mixed plans seek a minimum cost via a combination of eight planning options.
D
An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following? A. labor levels B. inventory levels C. production rates D. overtime work E. facility capacity
E
Dependence on an external source of supply is found in which of the following aggregate planning strategies? A. varying production rates through overtime or idle time B. using part-time workers C. hiring and laying off D. back ordering during high demand periods E. subcontracting
E
Which of the following aggregate planning strategies is known to lower employee morale? A. back ordering during high demand periods B. yield management C. changing inventory levels D. counterseasonal product and service mixing E. varying work force size by hiring or layoffs
E
Which of the following is NOT an advantage of level scheduling? A. lower turnover B. lower absenteeism C. stable employment D. more employee commitment E. matching production exactly with sales
E
Which of the following is NOT one of the successful techniques for controlling the cost of labor in services? A. flexibility in rate of output or hours of work to meet changing demand B. accurate scheduling of labor-hours to assure quick response to customer demand C. an on-call labor resource that can be added or deleted to meet unexpected demand D. flexibility of individual worker skills that permits reallocation of available labor E. little flexibility in worker hours to decrease the burden on management
E
Which of the following is consistent with a chase strategy? A. vary work force to meet demand requirements B. vary production levels to meet demand requirements C. vary production levels and work force to meet demand requirements D. little or no use of inventory to meet demand requirements E. All of the above are consistent with a chase strategy.
E
Which of these is among the demand options of aggregate planning? A. subcontracting B. changing inventory levels C. varying production rates through overtime or idle time D. varying workforce size E. back-ordering during high-demand periods
E
