Correct Answer
verified
Multiple Choice
A) reduced customer satisfaction due to the high level of backorders.
B) underutilization of facility capacity.
C) greater likelihood of stock-outs and lost sales.
D) keeping cost of running out in balance with the cost of excess capacity.
Correct Answer
verified
Multiple Choice
A) They are generally short-range.
B) They are not critical because they determine only future availability of output.
C) They involve all organizational units and are often made at the highest corporate level.
D) They are simple and easy to analyze.
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verified
Multiple Choice
A) 25%.
B) 50%.
C) 75%.
D) There is not enough information to determine the answer.
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verified
Multiple Choice
A) Wait and see what competitors do, then seek to match or exceed their capacity.
B) Create a positive capacity cushion to stimulate the market.
C) Reduce risk by allowing capacity to lag the market by a small amount.
D) All of the above.
Correct Answer
verified
Multiple Choice
A) Aggregate planning is concerned with matching supply and demand of output.
B) Aggregate planning determines not only the output levels planned but also the appropriate resource mix to be used.
C) The aim of aggregate planning is to set overall output levels for the medium-range future.
D) All of the above.
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verified
Multiple Choice
A) entails a planning horizon of about 12 months.
B) is an activity of matching supply with demand.
C) is done for a single, or a few, overall measures of output.
D) has all of the above features.
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verified
Multiple Choice
A) the concern is over a long-range planning horizon.
B) output levels are set in the face of certain demand.
C) "aggregate" implies that planning is done for a single overall measure of output or at most a few products.
D) firms should never consider overtime, hiring, firing, or subcontracting.
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verified
Multiple Choice
A) Process-focused facilities generally have one technology, or at most two, and usually produce components or parts that are shipped to other facilities for further processing or assembly.
B) Market-focused facilities are typically located in the markets they serve, commonly serving local customers, and are frequently service firms.
C) Demand-focused facilities are quickly constructed and have the ability to serve global markets with fast order response times as warranted by the nature of customer demand.
D) General-purpose facilities are commonly used by smaller companies and may produce several types of products and use several different processes.
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verified
Multiple Choice
A) Results in a large amount of labor turnover at certain times of the year.
B) The rate of production output will be variable, depending on demand.
C) Changes in the workforce will absorb variations in demand.
D) None of the above.
Correct Answer
verified
Multiple Choice
A) 6,250 units
B) 6,000 units
C) 5,750 units
D) 5,500 units
Correct Answer
verified
True/False
Correct Answer
verified
Multiple Choice
A) using overtime.
B) carrying inventory.
C) subcontracting.
D) pricing.
Correct Answer
verified
Multiple Choice
A) the former refers to the long range and the latter refers to the short range.
B) the former is concerned with allocating available resources and the latter with the acquisition of resources.
C) the former refers to the long range and the latter refers to the medium range.
D) the former is concerned with the acquisition of resources and the latter with allocating available resources.
Correct Answer
verified
Multiple Choice
A) Cost of facilities.
B) Likely behavior of competitors.
C) Business strategy.
D) Whether the company uses make-to-stock or assemble-to-order.
Correct Answer
verified
True/False
Correct Answer
verified
Multiple Choice
A) 2,582 hours.
B) 3,785 hours.
C) 4,160 hours.
D) None of the above.
Correct Answer
verified
Multiple Choice
A) a make-to-stock process is used.
B) a firm is attempting to capture market share in a growing industry.
C) the market for its products or services is shrinking.
D) a firm wants its capacity to match average demand.
Correct Answer
verified
Essay
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View Answer
Multiple Choice
A) should consider only supply management options.
B) affects only marketing and production, but human resources are not involved in decisions.
C) should consider only demand management options.
D) needs to consider multiple trade-offs such as customer service level, inventory levels, labor force stability, and costs.
Correct Answer
verified
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