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After the first period of the planning horizon, available-to-promise is computed only for those periods in which there is an MPS quantity.

A) True
B) False

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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 C)
G) A) and E)

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One option for altering the pattern of demand is:


A) backorders
B) overtime
C) part-time workers
D) inventories
E) subcontracting

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

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In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.

A) True
B) False

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Use either the transportation method or linear programming to develop an optimum aggregate plan, given the following data:

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blured image blured image The optimum aggregate plan f...

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Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of one to three months.

A) True
B) False

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Essentially, the output of aggregate planning is the:


A) marketing plan
B) production plan
C) rough-cut capacity plan
D) assignment plan
E) material requirements plan

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

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The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand.

A) True
B) False

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Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and backorders.The plan must wind up with no units in ending inventory in Period 6.Regular time capacity is 150 units per month.Overtime capacity is 20 units per month.Overtime cost is $30 per unit, backorder cost is $20 per unit, inventory holding cost is $5 per unit, regular time cost of $20 per unit, and beginning inventory is zero.

Correct Answer

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blured image The aggregate plan should loo...

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Aggregate planning requires which of the following information?


A) a forecast of expected demand
B) current levels of inventory
C) (a) and (b)
D) policies regarding employment levels
E) all of the above

F) A) and B)
G) All of the above

Correct Answer

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Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time.

A) True
B) False

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Accommodating peak demands and effectively using labor resources during periods of low demand would be the goal of aggregate planners in ....


A) Manufacturing
B) Military
C) Archeology
D) Libraries
E) Financial Services

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

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Linear programming models yield the optimal solution.

A) True
B) False

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What are total costs for the six periods?

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Which of the following is an input to aggregate planning?


A) beginning inventory
B) forecasts for each period of the schedule
C) customer orders
D) all of the above
E) quantity discounts

F) A) and E)
G) A) and D)

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What is the projected on-hand inventory at the end of period 2?


A) 21
B) 1
C) 12
D) 20
E) impossible to say without more information

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

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Linear programming to produce an aggregate plan:


A) will produce the best plan if accurate inputs are used
B) is the most widely used technique
C) (a) and (b)
D) will produce a plan that may not be the best plan
E) requires an excel spread sheet

F) All of the above
G) B) and C)

Correct Answer

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Which of the following would not be a strategy associated with adjusting aggregate capacity to meet expected demand?


A) subcontract
B) vary the size of the workforce
C) vary the intensity of workforce utilization
D) allow inventory levels to vary
E) use backorders

F) C) and E)
G) B) and C)

Correct Answer

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What quantity is available for commitment to new customers in either of the first two periods?


A) 21
B) 1
C) 20
D) 4
E) impossible to say without more information

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

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Master schedulers are employed primarily by service organizations.

A) True
B) False

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