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Exam 11: Aggregate Planning and Master Scheduling

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Question 41

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

A) varying output during regular time without changing employment levels.
B) varying output during regular time by changing employment levels.
C) varying output with and without changing employment levels.
D) varying inventory levels.
E) price increases.

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Question 42

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Master schedulers are employed primarily by service organizations.

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Question 43

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A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3. What is the projected on-hand inventory at the end of period 2?

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

Consider the following information: $\begin{array} { l l l } \text { Period } & \text { Forecast } \\\hline 1 & 200 & \\2 & 200 & \\3 & 300 & \\4 & 400 & \\5 & 500 & \\6 & 200 & \\\text { Regular Time: } & \$ 20 \text { per unit ( } 280 \text { units per period maximum) } \\\text { Overtime: } & \$ 30 \text { per unit (40 units per period maximum) } \\\text { Subcontracting: } & \text { None available } \\\text { Beginning Inventory: } & \text { None } \\\text { Carrying Cost: } & \$ 1 \text { per unit per period } \\\text { Backorder Cost: } & \$ 5 \text { per unit per period }\end{array}$ What are total regular time costs?

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

Linear programming models yield the optimal solution.

Consider the following information: $\begin{array} { l l l } \text { Period } & \text { Forecast } \\\hline 1 & 200 & \\2 & 200 & \\3 & 300 & \\4 & 400 & \\5 & 500 & \\6 & 200 & \\\text { Regular Time: } & \$ 20 \text { per unit ( } 280 \text { units per period maximum) } \\\text { Overtime: } & \$ 30 \text { per unit (40 units per period maximum) } \\\text { Subcontracting: } & \text { None available } \\\text { Beginning Inventory: } & \text { None } \\\text { Carrying Cost: } & \$ 1 \text { per unit per period } \\\text { Backorder Cost: } & \$ 5 \text { per unit per period }\end{array}$ What are total costs for the six periods?

At XYZ Corp., the aggregate planning unit reflects the fact that 50 percent of its output is product version A, 30 percent is version B, and 20 percent is versionC. Suppose that over the coming year forecasted total demand (in planning units) is for 10,400 units. Once the production plan is disaggregated, what will the weekly forecast for version A be (assume 52 weeks per year) ?

Aggregate planners typically use mathematical techniques such as linear programming and linear decision rules for planning.

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

Use either the transportation method or linear programming to develop an optimum aggregate plan, given the following data: $\begin{array} { c } &&{ \text { Period } } \\\text { Demand } & 130 & 160 & 140 \\\text { Capacity } & & & \\\text { Regular } & 100 & 100 & 100 \\\text { Overtime } & 20 & 20 & 20 \\\text { Subcontracting } & 30 & 30 & 30 \\\text { Costs } & & & \\\text { Regular Time: } & & \$ 10 \text { per unit } \\\text { Overtime: } & & \$ 15 \text { per unit } \\\text { Subcontracting: } & & \$ 20 \text { per unit } \\\text { Carrying: } & & \$ 2 \text { per unit } \\\text { Backorder: } & & \$ 5 \text { per unit }\end{array}$

Inventory information for firm ABC: $\begin{array} { l l } \text { Inventory at the end of April, 2008: } & 200 \text { units } \\\text { Expected demand during April, 2008: } & 50 \text { units } \\\text { Production expected during April, 2008: } & 100 \text { units }\end{array}$ What is the expected inventory at the end of April 2008?

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

One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is:

Which one of the following would not be considered a decision option for purposes of aggregate planning?

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

A company's product line consists of 40 percent Product A, 40 percent Product B, and 20 percent ProductC. 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?

The more __________ demand is, the more the aggregate plan will tend to reflect the ____________ strategy.

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