Question 1

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

Accepted Answer

Loading, sequencing, expediting, and dispatching are all tasks that are associated with short-range planning, which involves the daily or weekly activities of an organization.

Question 2

Which of the following statements about aggregate planning is false?

Accepted Answer

Aggregate planning produces a plan detailing how much of each product is made, not which products are made. The decision of which products to make is typically made at a more detailed level of planning, such as master scheduling or daily scheduling.

Question 3

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

Accepted Answer

Aggregate planning is the term used for medium-range capacity planning with a time horizon of three to eighteen months, focusing on meeting demand while minimizing costs over that period.

Question 4

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

Accepted Answer

The four things needed for aggregate planning are: 
1) a logical overall unit for measuring sales and output 
2) an aggregate demand forecast for an intermediate planning period 
3) a method for determining costs, such as hiring, layoffs, and inventory costs, associated with production schedules 
4) a model that combines forecasts and costs. The option C mentions a mathematical model that will minimize costs over the intermediate planning period, which is not one of the four things needed for aggregate planning.

Question 5

The typical time horizon for aggregate planning is

Accepted Answer

The typical time horizon for aggregate planning is 3 to 18 months.

Question 6

Which of the following statements about aggregate planning is true?

Accepted Answer

Aggregate planning involves adjusting capacity in order to meet production requirements, which can involve using the adjustable part of capacity to either increase or decrease supply. Advertising/promotion and overtime/idle time are not examples of manipulating supply or demand in aggregate planning, while work station loading and job assignments are more specific aspects of planning activities. Aggregate sequencing is not an alternative name for aggregate planning.

Question 7

Top executives tend to focus their attention on which type of forecasts?

Accepted Answer

Top executives typically focus on long-range forecasts, as they are responsible for setting the overall direction and strategy of the organization. Short-range and medium-range forecasts are usually handled by middle and lower-level managers, while weather and absentee forecasts are more operational and tactical in nature.

Question 8

Which of the following would most likely fall under the scope of only an operations manager?

Accepted Answer

Setting inventory levels is directly related to the management of operations and falls under the scope of an operations manager. The other options may involve input or collaboration from an operations manager, but they typically fall under the responsibilities of other managers such as research and development, marketing, or finance.

Question 9

Aggregate planning is capacity planning for

Accepted Answer

Aggregate planning is a capacity planning technique that covers the intermediate range, typically ranging from 3 to 18 months. It involves forecasting demand, determining the resources required to meet that demand, setting production schedules, and determining inventory levels. Thus, option B is the correct answer. Options A, C, D, and E are incorrect because aggregate planning does not cover the long range (option A), short range (option C), typically one to three months (option D), or typically three or more years (option E).

Question 10

Which of the following inputs helps an aggregate planner select the rate of output for a facility over the next 3 to 18 months?

Accepted Answer

All the options listed (facility capacity, inventory on hand, workforce size, and demand forecasts) are critical inputs for an aggregate planner to determine the optimal rate of output for a facility over the intermediate term (3 to 18 months). These factors collectively help in balancing demand with production capacity, managing inventory levels, and optimizing workforce utilization to meet forecasted demand efficiently.

Question 11

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

Accepted Answer

The answer of The objective of aggregate planning is to...

Question 12

The transportation method of linear programming is an optimizing approach to aggregate planning.

Accepted Answer

The transportation method is a popular method used in linear programming for aggregate planning. It involves finding the optimal way to transport goods from multiple sources to multiple destinations, while meeting demand and minimizing cost.

Question 13

Controlling the cost of labour in services involves quick response to consumer demand, on-call labour for unexpected demand, flexibility of labour for reallocation, and flexibility of hours or rate of output of individual workers.

Accepted Answer

Controlling the cost of labour in services does involve quick response to consumer demand, on-call labour for unexpected demand, flexibility of labour for reallocation, and flexibility of hours or rate of output of individual workers.

Question 14

Frito-Lay uses aggregate planning to match capacity with demand because of the ________ associated with its specialized processes.

Accepted Answer

Frito-Lay's specialized processes result in high fixed costs, such as equipment and facilities, but relatively low variable costs, such as raw materials and labor. Therefore, the most appropriate choice is C, which represents low variable cost and high fixed cost.

Question 15

The management coefficients model is a formal planning model built around a manager's experience and performance.

Accepted Answer

The management coefficients model is a formal planning model that uses a manager's experience and performance to develop coefficients that are used to make decisions and allocate resources.

Question 16

Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time.

Accepted Answer

Aggregate planning involves forecasting demand and adjusting production or staffing levels to meet that demand. This concept applies to both manufacturing and fast food restaurants, but in the case of fast food, the planning horizon (i.e. the duration of time for which plans are made) is typically much shorter, often just a few weeks or months.

Question 17

Aggregate planning would entail which of the following production aspects at BMW for a 12 month period?

Accepted Answer

Aggregate planning involves determining the overall production level for a certain period, usually up to 12 months. The total number of cars to produce would be the most relevant production aspect for BMW's aggregate planning. The other choices (A, B, C, E) relate to specific features or marketing strategies, which may not be as important for the overall production plan.

Question 18

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

Accepted Answer

The planning tasks associated with staffing, production, inventory, and sub-contracting levels typically fall under intermediate-range plans. These plans generally cover a time frame of 6 to 18 months and are developed to support the achievement of overall strategic goals.

Question 19

A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.

Accepted Answer

Perishable inventory refers to goods or services that have a limited shelf life and must be sold or consumed within a particular period. In the case of the hotel room and airline seat, if they are not sold or rented out for a particular date, they become worthless, and the opportunity to earn revenue from them is lost forever. Therefore, they are both examples of perishable inventory in services.

Question 20

Disaggregation

Accepted Answer

Disaggregation is the process of breaking down an aggregate plan into more detailed plans. This allows for a more accurate and specific plan to be developed for production, inventory, and workforce levels. It is an important aspect of the aggregate planning process to ensure that the plan is feasible and meets the demands of the business.

Quiz 13: Aggregate Planning