Question 1

Make-to-order companies use inventory whereas make-to-stock companies use backorders to shift demand.

Accepted Answer

A) True 
 B)False  False

Question 2

Rough-cut capacity planning converts the MPS into requirements for key resources in order to test the feasibility of a proposed MPS.

Accepted Answer

A) True 
 B)False

Question 3

In order to use the "level output/workforce strategy",variations in demand are met by:

Accepted Answer

A)  varying output during regular time without changing employment levels.
B)  keeping output level by changing workforce levels.
C)  relying on overtime to adjust capacity.
D)  using some combination of inventories,subcontracting and back orders.
E)  SubcontractingF) A) and B)
G) B) and E) D

Question 4

Given the projected demands for the next six months,prepare an aggregate production plan that uses inventory,regular time and overtime,and backorders.Regular time is 150 units per month.Overtime is a maximum of 20 units per month.Overtime cost is $30 per unit,backorder cost is $20 per unit,inventory holding cost is $5 per unit,regular time cost of $20 per unit,and beginning inventory is zero.
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Accepted Answer

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Question 5

Trial and error methods are commonly used by aggregate operations planners in developing aggregate operations plans.

Accepted Answer

A) True 
 B)False

Question 6

For aggregate planning,groups of similar products are lumped together and treated as equivalent products for planning purposes.

Accepted Answer

A) True 
 B)False

Question 7

An example of a demand option in aggregate operations planning is the use of backorders.

Accepted Answer

A) True 
 B)False

Question 8

Among the basic demand options in aggregate operations planning are promotion and the use of overtime.

Accepted Answer

A) True 
 B)False

Question 9

Which term is most closely associated with the term disaggregation?

Accepted Answer

A)  Subcontracting
B)  Master schedule
C)  Backordering
D)  Varying inventory levels
E)  Firing and laying offF) B) and D)
G) C) and E)

Question 10

Essentially,the output of aggregate operations planning is:

Accepted Answer

A)  the marketing plan.
B)  the production plan.
C)  the rough-cut capacity plan.
D)  the master schedule.
E)  the material requirements plan.F) C) and D)
G) B) and C)

Question 11

A "chase" demand strategy in aggregate operations planning would be attempting to match capacity and demand,period by period.

Accepted Answer

A) True 
 B)False

Question 12

Aggregate operations planners balance actions that influence:

Accepted Answer

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

Question 13

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?

Accepted Answer

A)  21
B)  1
C)  12
D)  20
E)  4F) A) and B)
G) All of the above

Question 14

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

Accepted Answer

A)  Production rates (capacities) 
B)  Demand forecasts
C)  Initial inventory levels
D)  Master production schedules
E)  Limits on the use of overtimeF) C) and E)
G) None of the above

Question 15

Aggregate operations planners seek to match supply and demand at minimum overall cost and:

Accepted Answer

A)  keeping inventories at a minimum.
B)  hiring when necessary.
C)  keeping inventories at a maximum.
D)  by staying within company policy.
E)  using only part time workers.F) B) and D)
G) B) and C) D

Question 16

Among the basic capacity options in aggregate operations planning are hiring workers and the use of overtime.

Accepted Answer

A) True 
 B)False

Question 17

In doing "aggregate operations planning" for a firm producing paint,the aggregate operations planners would most likely base their planning on:

Accepted Answer

A)  gallons of paint as an equivalent unit of production,without concern for the different colours to be produced.
B)  gallons of paint as an equivalent unit of production,but be concerned with the different colours to be produced.
C)  all the different sizes to be produced such as gallons,quarts,and pints.
D)  all the different sizes and all the different colours to be produced.E) All of the above
F) C) and D)

Question 18

Master production scheduling (MPS)involves long term capacity planning that typically covers a time horizon of one to three years.

Accepted Answer

A) True 
 B)False

Question 19

A major factor in choosing a strategy in aggregate operations planning is overall cost.

Accepted Answer

A) True 
 B)False

Question 20

Sales and operations planning is typically performed once a year with monthly updates.

Accepted Answer

A) True 
 B)False

Exam 19: Aggregate Operations Planning and Master Scheduling

Make-to-order companies use inventory whereas make-to-stock companies use backorders to shift demand.

Correct Answer
verified
False

Rough-cut capacity planning converts the MPS into requirements for key resources in order to test the feasibility of a proposed MPS.

Correct Answer
verified

In order to use the "level output/workforce strategy",variations in demand are met by:

Correct Answer
verified
D

Correct Answer
verified
_TB6896_00 There must be 20 ho...
View Answer

Trial and error methods are commonly used by aggregate operations planners in developing aggregate operations plans.

Correct Answer
verified

For aggregate planning,groups of similar products are lumped together and treated as equivalent products for planning purposes.

Correct Answer
verified

An example of a demand option in aggregate operations planning is the use of backorders.

Correct Answer
verified

Among the basic demand options in aggregate operations planning are promotion and the use of overtime.

Correct Answer
verified

Which term is most closely associated with the term disaggregation?

Correct Answer
verified

Essentially,the output of aggregate operations planning is:

Correct Answer
verified

A "chase" demand strategy in aggregate operations planning would be attempting to match capacity and demand,period by period.

Correct Answer
verified

Aggregate operations planners balance actions that influence:

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Aggregate operations planners seek to match supply and demand at minimum overall cost and:

Correct Answer
verified
D

Among the basic capacity options in aggregate operations planning are hiring workers and the use of overtime.

Correct Answer
verified

In doing "aggregate operations planning" for a firm producing paint,the aggregate operations planners would most likely base their planning on:

Correct Answer
verified

Master production scheduling (MPS)involves long term capacity planning that typically covers a time horizon of one to three years.

Correct Answer
verified

A major factor in choosing a strategy in aggregate operations planning is overall cost.

Correct Answer
verified

Sales and operations planning is typically performed once a year with monthly updates.

Correct Answer
verified

Exam 19: Aggregate Operations Planning and Master Scheduling

Make-to-order companies use inventory whereas make-to-stock companies use backorders to shift demand.

Correct AnswerverifiedFalse

Rough-cut capacity planning converts the MPS into requirements for key resources in order to test the feasibility of a proposed MPS.

Correct AnswerverifiedShow Answer

In order to use the "level output/workforce strategy",variations in demand are met by:

Correct AnswerverifiedD

Correct Answerverified_TB6896_00 There must be 20 ho...View AnswerShow Answer

Trial and error methods are commonly used by aggregate operations planners in developing aggregate operations plans.

Correct AnswerverifiedShow Answer

For aggregate planning,groups of similar products are lumped together and treated as equivalent products for planning purposes.

Correct AnswerverifiedShow Answer

An example of a demand option in aggregate operations planning is the use of backorders.

Correct AnswerverifiedShow Answer

Among the basic demand options in aggregate operations planning are promotion and the use of overtime.

Correct AnswerverifiedShow Answer

Which term is most closely associated with the term disaggregation?

Correct AnswerverifiedShow Answer

Essentially,the output of aggregate operations planning is:

Correct AnswerverifiedShow Answer

A "chase" demand strategy in aggregate operations planning would be attempting to match capacity and demand,period by period.

Correct AnswerverifiedShow Answer

Aggregate operations planners balance actions that influence:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Aggregate operations planners seek to match supply and demand at minimum overall cost and:

Correct AnswerverifiedD

Among the basic capacity options in aggregate operations planning are hiring workers and the use of overtime.

Correct AnswerverifiedShow Answer

In doing "aggregate operations planning" for a firm producing paint,the aggregate operations planners would most likely base their planning on:

Correct AnswerverifiedShow Answer

Master production scheduling (MPS)involves long term capacity planning that typically covers a time horizon of one to three years.

Correct AnswerverifiedShow Answer

A major factor in choosing a strategy in aggregate operations planning is overall cost.

Correct AnswerverifiedShow Answer

Sales and operations planning is typically performed once a year with monthly updates.

Correct AnswerverifiedShow Answer

Correct Answer
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False

Correct Answer
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Correct Answer
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D

Correct Answer
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_TB6896_00 There must be 20 ho...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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D

Correct Answer
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Correct Answer
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