Question 1

Aggregate planning for services is more difficult than aggregate planning for manufacturing because _____ and _____ are more difficult to predict.

Accepted Answer

Demand and capacity availability are more difficult to predict in services due to their intangible nature, variability of demand, and the inability to store services for later use, making aggregate planning more challenging compared to manufacturing.

Question 2

The direct result of disaggregating the aggregate plan is the

Accepted Answer

The direct result of disaggregating the aggregate plan is the master schedule. The master schedule breaks down the aggregate plan into specific details about what is to be produced, in what quantities, and when, serving as a critical link between the high-level planning and the actual production.

Question 3

In using the chase strategy, variations in demand could be met by

Accepted Answer

The chase strategy involves adjusting production rates or workforce levels to match demand fluctuations, meaning varying output by changing employment levels is a direct application of this strategy.

Question 4

Information for firm ABC

What is the expected inventory at the end of April 2008?

Accepted Answer

The answer of Information for firm ABC

What is the expected...

Question 5

Linear programming to produce an aggregate plan

Accepted Answer

Linear programming can produce the best plan if accurate inputs are used, as it is an optimization technique designed to find the best outcome under given constraints.

Question 6

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is

Accepted Answer

Available-to-promise inventory refers to the portion of a company's inventory that is available to be promised for delivery to customers, allowing marketing and sales teams to make realistic commitments about delivery dates for new orders.

Question 7

Moving from the aggregate plan to a master production schedule requires

Accepted Answer

Disaggregation is the process of breaking down the aggregate plan into more detailed aspects, leading to the creation of a master production schedule. This involves specifying exact items, quantities, and timings.

Question 8

Simulation to produce an aggregate plan

Accepted Answer

Simulation can produce a variety of plans based on different assumptions and parameters, but it does not guarantee the best plan due to the complexity of real-world conditions and the limitations of the simulation model.

Question 9

One option for altering the availability of capacity is

Accepted Answer

Using overtime or slack time directly affects the availability of capacity by adjusting the amount of labor available to meet demand.

Question 10

Proactive and reactive aggregate planning strategies are best associated with

Accepted Answer

Proactive aggregate planning strategies are associated with demand options, aiming to influence or anticipate demand before it occurs. Reactive strategies are associated with capacity options, adjusting the organization's capacity to meet demand as it occurs.

Question 11

One option for altering the availability of manufacturing capacity is

Accepted Answer

Inventories can be used to alter the availability of manufacturing capacity by storing excess production for future use or reducing inventory to match current demand.

Question 12

In order to use the level capacity strategy, variations in demand are met by

Accepted Answer

The level capacity strategy involves maintaining a constant output level while meeting demand variations through a combination of strategies such as inventories, overtime, part-time workers, subcontracting, and back orders, rather than by varying the output during regular time or changing employment levels directly.

Question 13

Information for firm ABC

What was the inventory at the end of March 2008?

Accepted Answer

The answer of Information for firm ABC

What was the inventory...

Question 14

Using variable pricing in response to demand variability tomaximize revenue using perishablecapacity is known as

Accepted Answer

Yield management is a strategy that involves adjusting prices based on the demand to maximize revenue, particularly when dealing with perishable goods or services with limited capacity, such as airline seats or hotel rooms.

Question 15

Aggregate planners seek to match supply and demand

Accepted Answer

Aggregate planners aim to balance supply and demand while minimizing overall costs, which includes considering costs related to production, inventory, hiring, and layoffs.

Question 16

In practice, the more commonly used techniques for aggregate planning are

Accepted Answer

Informal trial-and-error techniques are more commonly used in practice for aggregate planning due to their simplicity and flexibility compared to more complex mathematical models.

Question 17

Which of the following is most closely associated with disaggregation?

Accepted Answer

Disaggregation is most closely associated with breaking down a master schedule into detailed specific schedules. This process is essential in planning and managing operations, where a broad plan (master schedule) is detailed into specific tasks or components.

Question 18

The main disadvantage(s)of informal techniques used for aggregate planning is(are)

Accepted Answer

Informal techniques for aggregate planning may not always lead to the optimal or best plan because they often rely on intuition, experience, or simple rules of thumb rather than rigorous analysis.

Question 19

Which of the following are typically in play in a circumstance in which yield management is worthwhile?
(I)Perishable capacity(II)Ample finished goods storage(III)Demand variability(IV)Low holding costs

Accepted Answer

Yield management is most effective in situations where there is perishable capacity (e.g., airline seats, hotel rooms) and significant demand variability, allowing businesses to adjust prices and availability to maximize revenue. Ample finished goods storage and low holding costs are less relevant to the core principles of yield management.

Question 20

Uncommitted inventory is called

Accepted Answer

Available-to-promise inventory refers to the portion of a company's inventory that is available to be promised for delivery to customers, not yet committed to other orders.

Quiz 11: Aggregate Planning and Master Scheduling

Aggregate planning for services is more difficult than aggregate planning for manufacturing because _ and _ are more difficult to predict.