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A level capacity strategy is also known as a chase demand strategy.

A) True
B) False

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Aggregate planners seek to match supply and demand


A) at minimum overall cost.
B) by changing company policy.
C) by minimizing layoffs.
D) keeping inventories at a minimum.
E) by minimizing hires.

F) C) and D)
G) A) and B)

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


A) capacity availability; customer tastes
B) holding costs; overtime costs
C) demand; capacity availability
D) capacity change costs; holding costs
E) hiring costs; holding costs

F) B) and E)
G) A) and B)

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Moving from the aggregate plan to a master production schedule requires


A) rough-cut capacity planning.
B) disaggregation.
C) suboptimization.
D) strategy formulation.
E) chase strategies.

F) C) and D)
G) D) and E)

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Master schedulers are employed primarily by service organizations.

A) True
B) False

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A company'sdisaggregation plan calls for the aggregate production to be broken down into 40 percent Product A, 40 percent Product B, and 20 percent Product C. The aggregate plan calls for total production that averages 1,100 units per quarter. Quarter 1 production will be 800 units, quarter 2 production will be 1,400 units, and quarter 3 production will be 1,200 units. How many units of Product A will be produced in quarter 4?


A) 320 units
B) 400 units
C) 440 units
D) 480 units
E) 560 units

F) A) and B)
G) A) and C)

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Demand can be altered in aggregate planning by promotion and producing additional product using overtime.

A) True
B) False

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In a service setting, the aggregate plan results in a time-phased projection of _____ requirements.


A) customer
B) staff
C) inventory
D) subcontracting
E) outsourcing

F) A) and B)
G) B) and C)

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Which of the following steps is necessary to ensure that a master schedule is valid?


A) worker scheduling
B) order promising
C) inventory counting
D) order booking
E) rough-cut capacity planning

F) B) and D)
G) A) and B)

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Linear programming models yield the optimal solution.

A) True
B) False

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


A) they are expensive to do.
B) they may not result in the best plan.
C) they take a long time to do.
D) they require the use of a computer.
E) the lack of formal education of the planners.

F) None of the above
G) A) and E)

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An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low.

A) True
B) False

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Departmental budgeting is an example of aggregate planning.

A) True
B) False

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Which of the following is not a basic option for altering the availability of capacity in a service environment?


A) overtime
B) hiring/layoff
C) part time
D) inventory
E) All of the choices are options.

F) C) and E)
G) A) and E)

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One option for altering the pattern of demand is


A) pricing differentials
B) overtime.
C) part-time workers.
D) inventories.
E) subcontracting.

F) A) and D)
G) B) and D)

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At XYZ Corp., themaster schedule reflects the fact that 50 percent of its output is product version A, 30 percent is version B, and 20 percent is version C. Suppose that over the coming yearplanned aggregate production is for 10,400 units. Once the production plan is disaggregated evenly throughout the year, what will the weekly production for version A be (assume 52 weeks per year) ?


A) 1,000
B) 200
C) 400
D) 100
E) 50

F) B) and C)
G) C) and D)

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Capacity can be modified in aggregate planning by promotion and producing additional product using overtime.

A) True
B) False

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Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity.

A) True
B) False

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One option for altering the availability of manufacturing capacity is


A) pricing.
B) promotion.
C) back orders.
D) inventories.
E) yield management.

F) B) and E)
G) B) and D)

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Which one of the following is not a basic option for altering demand?


A) promotion
B) backordering
C) pricing
D) subcontracting
E) All of these are demand options.

F) None of the above
G) A) and C)

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