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