OM Chapter 13

The typical time horizon for aggregate planning is __________.

3 to 18 months

What directly results from disaggregation of an aggregate plan?

A master production schedule

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

A mathematical model that will minimize costs

Which of the following is the term used for intermediate-range capacity planning with a time horizon of three to eighteen months?

Aggregate planning

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

Changing inventory levels

Which of the following is not an ingredient for controlling labor cost in services?

Contracting overseas labor to obtain lower wage scales

Which choice below best describes the counter seasonal demand option?

Developing a mix of products that smoothes out their demands

Which of the following aggregate planning models is a trial-and-error approach?

Graphical methods

To use yield management strategies a business should have which combination of costs?

Low variable and high fixed

Which of the following attempts to manipulate product or service demand?

Price cuts

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

Production or workforce levels

Dependence on an external source of supply is found in which of the following aggregate planning strategies?

Subcontracting

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

The transportation method

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

Varying production levels and/or work force to meet demand requirements

What is the output of SO&P?

an aggregate plan - a plan that includes forecast levels for families of products of finished goods, inventory, shortages, and changes in the workforce

Yield management is best described as:

capacity allocation to different classes of customers to maximize revenue

Which of these is not a characteristic that makes yield management attractive to organizations with perishable inventory?

capacity is easily changed

What is the aggregate plan?

determines the quantity and timing of production in intermediate future (3 to 18 months ahead)

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 periods (its aggregate planning horizon) is estimated to average 900 units. In following the chase strategy, what will the firm do?

lay off workers to match the 200 unit difference

The objective of aggregate planning is to meet demand while __________ over the planning period.

minimizing cost

Aggregate planning for service firms that provide intangible output deals mainly with __________.

planning for human resource requirements to manage demand

What does SO&P do?

receives input from internal and external sources in cross functional teams to balance resources and align a companies demand from the supply chain to final customer

Planning tasks associated with loading, sequencing, expediting, and dispatching typically fall under __________.

short-range plans

Which of these aggregate planning strategies adjusts capacity to match demand?

using part time workers

Which of these is among the demand options of aggregate planning?

Back-ordering during high-demand periods