Unit 3 Scheduling Operations
Chapter 12: Aggregate Planning Lesson 38-Tutorial 11 Dear Students, today we are going to have a tutorial session for the previous lesson. The overall objective is to appreciate how the theoretical concepts are translated and applied into practical business situations. Let’s put our thinking caps and start now. 1. An aggregate plan is a statement of strategy which projects production rates, work-force levels, and inventory levels for a medium range period, using reduced detail to simplify planning. a. True b. False
2. In manufacturing organizations, the production plan is the linkage between the strategic goals of the business plan and the work-force schedule. a. True b. False
3. To achieve aggregate plans, products, labor, and time are grouped in compatible terms to reduce detail and facilitate periodic updating of the plan.
a. True b. False
4. The generation of the Aggregate Plan should be assigned to a group whose sole purpose is planning and budget development. This approach will reduce the potential for conflict among operational units. a. True b. False
5.
Creative pricing of goods and services is an example of an aggressive alternative for managing demand patterns in aggregate planning. a. True b. False
6. Producing complementary products (similar resource requirements with different demand cycles) is an example of a reactive alternative for managing patterns of demand in aggregate planning. a. b. 7.
Reactive alternatives for achieving acceptable aggregate plans are actions that respond to a given demand pattern as opposed to attempts to modify demand. a. b.
8.
true false
Both extended overtime and under time are human resource utilization strategies that may lead to lower per unit productivity. a. b.
9.
True False
true false
Four reactive alternative strategies that are used as starting points for aggregate plans can be classified as capacity and inventory strategies a. True b. False
10.
In the aggregate planning process, alternatives, constraints, and costs must be identified. The costs include wages, inventory, and facility capital costs. a. b.
11.
True false
In the aggregate planning process, alternatives, constraints, and costs must be identified. The costs include wages, inventory, and facility capital costs. a. b.
True False
12.
Acceptable aggregate plans involving anticipation inventory requires the use of a common unit of measure such as employee-period equivalents. a. b.
13
When Total Capacity, product demand, and production costs of goods are known for each production period, one transportation method solution is sufficient to determine the best work-force plan. a. b.
14.
True False
A common drawback for the transportation method and linear programming model is the assumption that all costs are linearly related to the amount of goods produced. a. b.
15.
True False
True False
A level strategy is a preferred approach in the service sector when the staffing plan is developed. a. b.
True False
16. An aggregate plan for a manufacturing firm includes consideration of: a. production rates b. work-force levels c. inventory holdings 17.
A service firm's aggregate plan links the firm's strategic goals and objectives with detailed operational plans called: a. b. c. d.
18.
production plan staffing plan work-force schedule none of the above
Which of the following statements does NOT apply to a production plan? a.
plans are consistent with company's strategic goals and objectives
b. c. d.
enables the assessment of financial and physical resource needs without excessive detail serves as a bridge between the strategic and operational plans provides a view of detailed work-force schedules
19.
The time horizon for an aggregate plan is typically: a. 0 - 3 months b. 3 - 18 months c. 24 - 60 months d. none of the above
20.
A for-profit service may expect to encounter which of the following sequence of plans? a. business plan; staffing plan; work-force schedule b. business plan; production plan; work-force schedule c. financial plan; staffing plan; master production schedule d. Annual plan; production plan; master production schedule
21.
The operations area input to the aggregate plan includes: a. demand forecasts b. cost data c. work-force capacities d. product design changes
22.
Aggressive alternatives for coping with demand requirements include: a. anticipation inventory b. creative pricing c. employee hiring and layoffs d. use of subcontractors
23.
A reactive strategy that is sometimes called the capacity strategy may be characterized as: a. Chase #1: vary work-force level to match demand b. Chase #2: vary output rate to match demand c. Level #1: constant work-force level d. Level #2: constant output rate
24.
The aggregate planning strategy that is most likely to impact the productivity of manufacturing workers, adversely, is: a. hiring of temporary workers b. use of overtime c. layoff of workers d. building anticipation inventory
25.
A linear programming model CANNOT be used when which of the following are true?
a. b. c. d. 26.
an optimal production plan is desired the values of decision variables are fractional a set of linear constraints may be defined cross product relationships exist between two or more decision variables The transportation method may be used to determine the costs of alternative strategies for anticipation inventory when which of the following data are available? a. b. c. d.
27.
work-force capacity per planning period aggregate demand per planning period beginning inventory all of the above
Which of the following statements are true about anticipation inventory? a. b. c. d.
inventory increases during periods of light demand use of anticipation inventory is a reactive alternative to arrive at an acceptable aggregate plan increase in anticipation inventory leads to increases in pipeline inventory both a and b
28.
When following a utilization strategy, which alternative relies on external sources of production? a. overtime/undertime b. Subcontracting c. back orders d. stock outs
29.
A major department store initiates a business plan that gets translated into an operational plan called a _______________. a. b. c. d.
30.
production plan staffing plan master production schedule work-force schedule
An appliance manufacturer initiates a business plan that gets translated into an operational plan called a _______________. a. b. c.
production plan staffing plan master production schedule
d.
work-force schedule