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Simulation to produce an aggregate plan


A) will produce the best plan.
B) is the most widely used technique.
C) is easy to implement.
D) will produce a plan that may not be the best plan.
E) requires a minimum of four iterations to be accurate.

F) D) and E)
G) All of the above

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Aggregate planners typically use mathematical techniques such as linear programming for planning.

A) True
B) False

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False

A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected on-hand inventory at the end of period 2?


A) 21
B) 1
C) 12
D) 20
E) impossible to say without more information

F) A) and D)
G) A) and C)

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Which of the following is not an output to the aggregate planning process?


A) inventory levels
B) employees required
C) backorder projections
D) demand forecast
E) subcontracting needed

F) B) and C)
G) A) and E)

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One area in which aggregate planning decisions are made is


A) job sequencing
B) customer order quantities
C) inventory levels
D) location
E) layout

F) All of the above
G) B) and C)

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Aggregate planners commonly use trial-and-error methods in developing aggregate plans.

A) True
B) False

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Proactive and reactive aggregate planning strategies are best associated with


A) input and output.
B) make and buy.
C) quantitative and qualitative.
D) exact and approximate.
E) demand and capacity options.

F) B) and D)
G) A) and B)

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Aggregate planning requires which of the following information? (I) a forecast of expected demand(II) current levels of inventory(III) policies regarding employment levels


A) II only
B) I and II only
C) I and III only
D) I, II, and III
E) II and III only

F) B) and D)
G) D) and E)

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D

Aggregate planners attempt to balance


A) demand and inventories.
B) demand and costs.
C) capacity and inventories.
D) capacity and costs.
E) capacity and demand.

F) C) and E)
G) A) and E)

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When the opportunity cost of lost revenue is relatively high, _____ become(s) relatively more attractive.


A) layoffs
B) back orders
C) excess capacity
D) disaggregation
E) minimal inventory

F) C) and E)
G) A) and B)

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C

Which of the following is not an input to the aggregate planning process?


A) resources available
B) demand forecast
C) policies on workforce changes
D) master production schedules
E) cost information

F) A) and E)
G) A) and B)

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The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

A) True
B) False

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Linear programming to produce an aggregate plan


A) will produce the best plan if accurate inputs are used.
B) is the most widely used technique.
C) is easy to implement.
D) will produce a plan that may not be the best plan.
E) requires an Excel spreadsheet.

F) All of the above
G) B) and C)

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Aggregate planning is capacity planning for


A) the long range.
B) the intermediate range.
C) the short range.
D) typically one to three months.
E) typically one or more years.

F) None of the above
G) C) and E)

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Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

A) True
B) False

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This aggregate planning technique is known for being examined under a variety of conditions.


A) linear programming
B) spreadsheet
C) simulation
D) heuristic
E) trial and error

F) C) and E)
G) A) and E)

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Aggregate planning is capacity planning that typically covers a time horizon of one to three months.

A) True
B) False

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Subcontracting "in" would apply to periods in which our organization has excess capacity.

A) True
B) False

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Accommodating peak demand and effectively using labor resources during periods of low demand would be the main goals of aggregate planners in


A) manufacturing.
B) military.
C) archaeology.
D) libraries.
E) financial services.

F) C) and D)
G) A) and D)

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Aggregate planning in the case of a high-volume product output business such as a restaurant is directed toward


A) smoothing the service rate.
B) reducing the size of the workforce.
C) making the kitchen and waitstaff more flexible.
D) coming up with a fixed staffing level.
E) making weekly work schedules more stable.

F) A) and D)
G) A) and C)

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