ISDS 3115 Chapter 13

Successful techniques to control the cost of labor in service firms do NOT include: _________ in rate of output or hours of work to meet changing supply

flexibility

Which of the following is NOT a capacity option of aggregate planning? back-ordering during _____-demand periods

high

In a service business with a highly variable demand, the general approach to aggregate scheduling does NOT include: depleting inventory during _____ periods

slack

What is an alternative name for revenue management? ___________ management

yield

"______ __________" is best described as capacity allocation to different classes of customers in order to maximize profits.

Yield management

Which of the following actions is consistent with the use of pure level strategy? a. use inventory to meet demand requirements b. vary the amount of subcontracting to meet demand requirements c. vary production levels to meet demand requirements d. vary work force to meet demand requirements e. none of the above

a

Which of the following aggregate planning strategies is a "demand option"? a. changing price b. subcontracting c. varying production levels d. changing inventory levels e. using part-time workers

a

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

a

Aggregate planning would entail which of the following production aspects at BMW for a 12-month period? total number of _______ to produce

cars

Which of the following would like result in the LEAST amount of inventory? _________ strategy

chase

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

The objective of aggregate planning is to meet forecast demand while minimizing ______ over the planned period.

cost

Revenue (or yield) management is best described as A) a situation where management yields to labor demands B) a situation where the labor union yields to management demands C) management's selection of a product mix yielding maximum profits D) allocation of scarce resources to customers at prices that will maximize revenue E) a process designed to increase the rate of output

d

Which choice best describes level scheduling? a. Daily production is variable from period to period. b. Subcontracting, hiring, and firing manipulate supply. c. Price points are calculated to match demand to capacity. d. Inventory goes up or down to buffer the difference between demand and production. e. Seasonal demand fluctuations are matched without hirings or layoffs.

d

Which of the following aggregate planning methods does not work if hiring and layoffs are possible? a. the linear decision rule b. simulation c. the management coefficients model d. the transportation method e. graphical methods

d

Which of the following aggregate planning strategies is a "capacity option"? a. influencing demand by changing price b. counter seasonal product mixing c. influencing demand by extending lead times d. changing inventory levels e. influencing demand by back ordering

d

The typical time horizon for aggregate planning is ___ to ___ months

3, 18

____________ breaks the aggregate plan into greater detail

Disaggregation

Which of these is among the DEMAND options of aggregate planning? a. subcontracting b. back-ordering during high-demand periods c. changing inventory levels d. varying workforce size e. All of the above are demand options.

b

What is not one of the features that an S&OP process needs to generate a useful aggregate plan? a forecast of demand for a reasonable long-term planning period in _________ terms

aggregate

Which of the following occurs first within a production planning system? ___________ planning

aggregate

Which of the following statements is NOT true about S&OP? S&OP is also called an ________ plan

aggregate

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. subcontracting c. using part-time workers d. back ordering during high demand periods e. hiring and laying off

b

In aggregate planning, which one of the following is NOT a basic option for altering demand? a. promotion b. subcontracting c. back ordering d. pricing e. All are demand options.

b

Under which of the following do planning tasks associated with production planning and budgeting, as well as setting employment, inventory, and subcontracting levels, typically fall? A) Long range plans B) Intermediate-range plans C) Short-range plans D) Strategic planning E) demand options

b

Which choice below best describes the COUNTERSEASONAL demand option? a. producing such products as lawnmowers and sunglasses during the winter b. developing a mix of products that smoothes out their demands c. lowering prices when demand is slack d. using subcontractors only when demand is excessive e. the breaking of the aggregate plan into finer levels of detail

b

Which of the following aggregate planning strategies might direct your client to a competitor? a. using part-time workers b. subcontracting c. changing inventory level d. varying production rates through overtime or idle time e. varying work force size by hiring or layoffs

b

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

b

Which of these aggregate planning strategies adjusts capacity to match demand? a. back ordering b. using part-time workers c. counter seasonal product mixing d. changing price e. None of the above is a capacity option.

b

Which of these is NOT a characteristic that makes yield management attractive? a. demand can be segmented b. service can be sold in advance of consumption c. capacity is easily changed d. variable costs are lower and fixed ones are high e. demand fluctuates

c

Which of the following aggregate planning models is based primarily upon a manager's past experience? a. the linear decision rule b. simulation c. the management coefficients model d. the transportation method e. graphical methods

c

Which of the following is NOT an advantage of level scheduling? a. stable employment b. lower absenteeism c. matching production exactly with sales d. lower turnover e. more employee commitment

c

Which of the following is NOT an ingredient for controlling labor cost in services? a. accurate scheduling of labor-hours to assure quick response to customer demand b. an on-call labor resource that can be added or deleted to meet unexpected demand c. contract overseas labor to obtain a lower wage scale d. flexibility of individual worker skills that permits reallocation of available labor e. flexibility in rate of output or hours of work to meet changing demand

c

Which of the following is NOT associated with manipulation of product or service demand? a. price cuts or discounts b. promotion c. subcontracting d. counter seasonal products or services e. advertising

c

Which of the following is NOT one of the four things needed for aggregate planning? a. a logical overall unit for measuring sales and output b. a method for determining costs, such as hiring, firing, and inventory costs, associated with production schedules c. a mathematical model that will minimize costs over the intermediate planning period d. an aggregate demand forecast for an intermediate planning period e. All of these are needed for aggregate planning.

c

Which of the following plans are the job of the operations manager, working with other functional areas of the firm? A) short range plans B) long-range plans C) intermediate-range plans D) all three

c

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

c

Which of the following statements regarding planning is TRUE? a. In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon. 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. Because service firms have no inventory, the pure chase strategy does not apply. e. All of the above are true.

c

Which of the following aggregate planning strategies is known to lower employee morale? a. yield management b. counter seasonal product and service mixing c. changing inventory levels d. varying work force size by hiring or layoffs e. back ordering during high demand periods

d

Which of the following is the term used for medium range capacity planning with a time horizon of three to eighteen months? a. material requirements planning b. short-range planning c. strategic planning d. aggregate planning e. none of the above

d

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

d

Which of the following statements regarding Anheuser-Busch is FALSE? a. Aggregate planning is a major part of its competitive edge. b. All four stages of beer production are integrated into the aggregate plan. c. High facility utilization complements its successful aggregate planning. d. Its aggregate planning focuses entirely on facilities, ignoring employee issues. e. Even with excellent aggregate planning, its plants need to have high utilization.

d

Which of the following uses regression to incorporate historical managerial performance into aggregate planning? a. transportation method b. simulation c. linear decision rule d. management coefficients model e. keiretsu

d

Planning tasks associated with loading, sequencing, expediting, and dispatching typically fall under ______-______ plans

short-range

What is the first step in the graphical method for aggregate planning? determine the _______ in each period

demand

The objective of aggregate planning is usually to: meet forecast ______ while minimizing _____ over the planned period

demand, cost

What makes aggregate planning particularly complex in the airline industry? the large number of _________ sites

dependent

What is the process of breaking an aggregate plan into greater detail? ____________

disaggregation

Under which of the following do planning tasks associated with job assignments, order, job scheduling, and dispatching typically fall? A) Strategic planning B) mission-related planning C) long-range plans D) intermediate range plans E) Short-range plans

e

Which of the following attempts to manipulate product or service demand? a. inventories b. part-time workers c. subcontracting d. overtime/idle time e. price cuts

e

Which of the following is NOT consistent with a pure level strategy? a. varying the use of subcontracting b. variable work force levels c. little or no use of inventory to meet demand requirements d. varying production levels and/or work force to meet demand requirements e. All of the above are inconsistent with the pure level strategy.

e

Which of the following is consistent with a pure chase strategy? a. vary production levels to meet demand requirements b. vary work force 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 pure chase strategy.

e

Which of the following statements regarding aggregate planning in services is FALSE? a. When outputs are intangible, aggregate planning deals mainly with human resources requirements and managing demand. b. Perishability of inventory is an important consideration of planning. c. Aggregate planning in some service industries can be simpler than in manufacturing. d. Labor is the primary aggregate planning vehicle. e. Level scheduling is far more common than chase.

e

Yield management is most likely to be used in which of the following situations? a. a fast food restaurant with tide demand fluctuations during the day b. a dental clinic that wants to fill its appointment book c. a firm with a good counter seasonal product mix d. a shipping company that can change its fleet size easily e. an airline attempting to fill "perishable" seats at a maximum revenue

e

Job assignments are a focused issue in which plan? _______ ______ plans

short range

Aggregate planning for service firms that provide intangible output deals mainly with planning for ________ ________ requirements and managing demand

human resource

Which of the following statements is NOT true regarding aggregate plans? aggregate plans use information regarding __________ products rather than product lines

individual

Aggregate planning is capacity planning for the ____________ range

intermediate

Aggregate planning is concerned with determining the quantity and timing of production in the: ___________ term

intermediate

Which of the following statements is NOT true regarding the planning process? job scheduling is made as part of _________ plans

intermediate

The planning tasks associated with staffing, production, inventory, and sub-contracting levels typically fall under ______________-______ plans

intermediate-range

What is the primary aggregate planning vehicle in service industries? ________

labor

The transportation method of linear programming requires that: cost factors be _________ and positive

linear

Capacity decisions are most critical to which of the following? _______-________ plans

long-range

Which statement is characteristic of a mixed strategy for aggregate planning? Mixed plans seek a _______ cost via a combination of eight planning options

minimum

Which of the following is NOT a demand option of aggregate planning? using _______-_______ workers

part-time

Which of these aggregate planning strategies is a capacity option? using ______-________ workers

part-time

Revenue management is MOST likely to be used in which of the following situations? an airline attempting to fill "________" seats at maximum revenue

perishable

In level scheduling, what is kept uniform from month to month? _________/_________ levels

production/workforce

Which of the following statements is NOT true regarding the master production schedule? The master production schedule is a _____ forecast

sales

Yield management is of interest to organizations having the characteristic of: ____________ demand

segmentable

In the service sector, which of the following aggregate planning strategies might direct your client to a competitor? ___________

subcontracting

"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes the _______________ method

transportation