Question 1

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 for fast food restaurants involves forecasting demand, determining the capacity needed to meet that demand, and developing a plan to adjust staffing levels and inventory levels. This is similar to manufacturing, but with smaller units of time such as weekly or daily instead of monthly or quarterly.

Question 2

Frito-Lay uses aggregate planning to match capacity with demand because of the ________ associated with its specialized processes.
A)high variable cost and high fixed cost
B)high variable cost and low fixed cost
C)low variable cost and high fixed cost
D)low variable cost and low fixed cost
E)average variable cost and medium fixed cost

Accepted Answer

Frito-Lay's specialized processes result in high fixed costs, such as the cost of maintaining and operating specialized equipment needed for production. However, the variable costs associated with producing snacks are relatively low, making it more cost-effective to use aggregate planning to match capacity with demand. This allows Frito-Lay to maintain efficient production levels while minimizing the costs associated with excess capacity.

Question 3

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

Accepted Answer

The management coefficients model is indeed a formal planning model that takes into account a manager's experience and performance. It is used to analyze and evaluate the effectiveness of a manager's decisions and actions in order to improve overall performance of the organization.

Question 4

Which of the following statements about aggregate planning is true?
A)Advertising/promotion is a way of manipulating product or service supply.
B)Work station loading and job assignments are examples of aggregate planning.
C)Overtime/idle time is a way of manipulating product or service demand.
D)Aggregate planning uses the adjustable part of capacity to meet production requirements.
E)Aggregate planning is also known as aggregate sequencing.

Accepted Answer

Aggregate planning involves using the adjustable part of capacity, such as hiring/firing and overtime/idle time, to meet production requirements. Advertising/promotion (choice A) is a way of manipulating demand, not supply. Work station loading and job assignments (choice B) are operational decisions that are made during the execution phase, not during the planning phase. Overtime/idle time (choice C) is a way of manipulating supply, not demand. Aggregate sequencing (choice E) is not a commonly used term in the field of operations management.

Question 5

The objective of aggregate planning is to meet demand while ________ over the planning period.
A)minimizing cost
B)maximizing service level
C)minimizing stock out
D)minimizing fixed cost
E)all of the above

Accepted Answer

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

Question 6

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 in services refers to inventory that cannot be stored or saved for use at a later time, such as an unsold airline seat or an unrented hotel room. Once the time or date for that service has passed, the opportunity to sell or rent that unit is lost forever.

Question 7

Which of the following inputs helps an aggregate planner select the rate of output for a facility over the next 3 to 18 months?
A)facility capacity
B)inventory on hand
C)workforce size
D)demand forecasts
E)all of the above

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 appropriate rate of output for a facility over the medium term (3 to 18 months). These factors collectively help in balancing demand with production capacity, managing inventory levels, and optimizing workforce utilization to meet demand forecasts efficiently.

Question 8

The planning tasks associated with staffing,production,inventory,and sub-contracting levels typically fall under
A)short-range plans.
B)intermediate-range plans.
C)long-range plans.
D)demand options.
E)strategic planning.

Accepted Answer

Staffing, production, inventory, and sub-contracting levels are associated with intermediate-range plans, which typically cover a period of six months to two years. Short-range plans usually cover day-to-day operations, while long-range plans cover periods of more than two years. Demand options and strategic planning are broader terms that encompass various planning activities and are not specific to the tasks mentioned in the question.

Question 9

Which of the following would most likely fall under the scope of only an operations manager?
A)research and development
B)new product plans
C)capital investments
D)facility location and expansion
E)setting inventory levels

Accepted Answer

Setting inventory levels is specifically related to managing the day-to-day operations of a business and falls under the scope of an operations manager. The other options involve more strategic decision making and may involve other departments or managers.

Question 10

The typical time horizon for aggregate planning is
A)less than a month.
B)up to 3 months.
C)3 to 18 months.
D)over one year.
E)over 5 years.

Accepted Answer

The typical time horizon for aggregate planning is 3 to 18 months. This allows for a mid-term planning approach that can balance capacity and demand while still allowing for adjustments in response to changes in the market or production capabilities.

Question 11

Aggregate planning would entail which of the following production aspects at BMW for a 12 month period?
A)number of cars with a hi-fi stereo system to produce
B)number of two-door vs.four-door cars to produce
C)number of green cars to produce
D)total number of cars to produce
E)number of cars to e exported

Accepted Answer

Aggregate planning refers to the overall production planning for a business for a specific period of time, typically in the medium-term range of 3-12 months. It deals with determining the overall production levels, workforce requirements, inventory levels, and other related factors to meet the anticipated demand for the product. Among the given options, only the total number of cars to produce falls under the scope of aggregate planning. The other options, such as the number of cars with a hi-fi stereo system, or the number of green cars, are more specific and do not address the overall production planning needs. Similarly, the number of two-door vs. four-door cars to produce, or the number of cars to be exported, are more tactical decisions that may be made within the larger aggregate planning framework.

Question 12

Which of the following is not one of the four things needed for aggregate planning?
A)a logical overall unit for measuring sales and output
B)a method for determining costs,such as hiring,layoffs,and inventory costs,associated with production schedules
C)a mathematical model that will minimize costs over the intermediate planning period
D)an aggregate demand forecast for an intermediate planning period
E)a model that combines forecasts and costs

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 is not one of the four things needed for aggregate planning as it is specific to a mathematical model that will minimize costs over the intermediate planning period.

Question 13

Top executives tend to focus their attention on which type of forecasts?
A)short-range
B)medium-range
C)long-range
D)weather
E)the forecast for the next day's absentee levels

Accepted Answer

Top executives typically focus on long-range forecasts because they need to address strategic planning and decision making for the future of the company. Short-range and medium-range forecasts are typically handled by middle managers or operational staff. Weather and absentee forecasts are more relevant for specific departments or functional areas within the company.

Question 14

Planning tasks associated with loading,sequencing,expediting,and dispatching typically fall under
A)short-range plans.
B)intermediate-range plans.
C)long-range plans.
D)mission-related planning.
E)strategic planning.

Accepted Answer

These tasks are related to the day-to-day operations and scheduling of the production process, which falls under short-range planning. Intermediate-range planning involves more long-term forecasting of production needs and capacity, while long-range planning is focused on overall business strategy and growth. Mission-related planning and strategic planning are even more broad and forward-thinking, and may not necessarily involve these specific tasks.

Question 15

Which of the following is the term used for medium range capacity planning with a time horizon of three to eighteen months?
A)material requirements planning
B)short-range planning
C)strategic planning
D)aggregate planning
E)tactical planning

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 16

Disaggregation
A)breaks the aggregate plan into greater detail.
B)transforms the master production schedule into an aggregate plan.
C)calculates the optimal price points for yield management.
D)converts product schedules and labour assignments to a facility-wide plan.
E)is an assumption required for the use of the transportation model in aggregate planning.

Accepted Answer

Disaggregation is the process of breaking the aggregate plan into more detailed plans for product schedules and labor assignments. This allows for a more accurate and specific plan to be developed for the production process.

Question 17

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 require 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 18

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 three or more years.

Accepted Answer

Aggregate planning is capacity planning for the intermediate range, which typically ranges from 3 to 18 months. It aims to determine the production, inventory, and workforce levels needed to meet fluctuations in demand while minimizing costs and maximizing efficiency. The long range typically ranges from 3 to 5 years, and the short range is typically less than one month.

Question 19

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

Accepted Answer

The statement is true. The transportation method of linear programming is commonly used in aggregate planning to optimize the transportation and distribution of resources in a cost-effective manner.

Question 20

Which of the following statements about aggregate planning is false?
A)Hiring,layoffs,overtime,and subcontracting are methods of manipulating capacity.
B)Aggregate planning produces a plan detailing which products are made and in what quantities.
C)Yield management is a way of manipulating product or service demand.
D)Aggregate planning uses the adjustable part of capacity to meet production requirements.
E)The transportation method is an optimizing technique for aggregate planning.

Accepted Answer

Aggregate planning focuses on determining the overall level of production and the resources needed to meet demand. It does not typically detail which specific products will be produced in what quantities. This level of detail would typically be determined through a separate production planning process.

Quiz 13: Aggregate Planning

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

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

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

Which of the following statements about aggregate planning is true?

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

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

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

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

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

The typical time horizon for aggregate planning is

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

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

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

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

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

Disaggregation

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.

Aggregate planning is capacity planning for

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

Which of the following statements about aggregate planning is false?