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Operations management stevenson 11th edition test bank ch11

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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... The goal of aggregate planning is to achi

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2 The goal of aggregate planning is to achieve a production plan that attempts to balance the

organization's resources and meet expected demand

Trang 2

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

Trang 3

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

Trang 4

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

True False

27 Which of the following best describes aggregate planning?

A the link between intermediate term planning and short term operating decisions

B a collection of objective planning tools

C make or buy decisions

D an attempt to respond to predicted demand within the constraints set by product, process and location decisions

29 Aggregate planning is capacity planning for:

A the long range

B the intermediate range

C the short range

D typically one to three months

E typically one or more years

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31 Which of the following is an input to aggregate planning?

A just gallons of paint, without concern for the different colors and sizes

B gallons of paint, but be concerned with the different colors to be produced

C gallons, quarts, pints, and all the different sizes to be produced

D all the different sizes and all the different colors by size

E none of the above

34 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

35 Aggregate planners attempt to balance:

A demand and inventories

B demand and costs

C capacity and inventories

D capacity and costs

E capacity and demand

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36 Which of the following is not an input to the aggregate planning process?

A resources available

B demand forecast

C policies on work force changes

D master production schedules

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41 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

43 One option for altering the availability of capacity is:

A use of overtime or slack time

44 In order to use the "level capacity strategy," variations in demand are met by:

A varying output during regular time without changing employment levels

B varying output during regular time by changing employment levels

C (a) and (b)

D using combination of inventories, overtime, part time, and back orders

E price adjustments

45 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 (a) and (b)

D varying inventory levels

E price increases

Trang 8

46 Uncommitted inventory is called 

47 Aggregate planners seek to match supply and demand:

A at minimum overall cost

B by staying within company policy

C (a) and (b)

D keeping inventories at a minimum

E all of the above

48 In practice, the more commonly used techniques for aggregate planning are:

A mathematical techniques

B informal trial-and-error techniques

C (a) and (b) about equally

D simulation models

E linear programming optimization

49 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 use of a computer

E lack of formal education of the planners

50 Inventory information for firm ABC:

What is the expected inventory at the end of April, 1999?

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51 Inventory information for firm ABC:

What was the inventory at the end of March, 1999?

52 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

53 Simulation to produce an aggregate plan:

A will produce the best plan

B is the most widely used technique

C both (a) and (b)

D will produce a plan that may not be the best plan

E requires a minimum of 4 iterations to be accurate

D varying inventory levels

E firing and laying off

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56 Moving from the aggregate plan to a master production schedule requires:

A rough cut capacity planning

D high margin inventory

E none of the above

58 Proactive and Reactive aggregate planning strategies are best associated with:

A Input and Output

B Make and Buy

C Quantitative and Qualitative

D Exact and Approximate

E Demand and Capacity options

59 A manager has prepared a forecast of expected aggregate demand for the next six months Develop an aggregate plan to meet this demand given this additional information: A level production rate of 100 units per month will be used Backorders are allowed, and they are charged at the rate of

$8 per unit per month Inventory holding costs are $1 per unit per month in ending inventory

Determine the cost of this plan if regular time cost is $20 per unit and beginning inventory is zero

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60 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

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62 Prepare a master schedule based on the following information:

Currently there are 145 units in inventory Policy calls for a fixed order quantity of 250 units

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69 What are total backorder costs?

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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

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

B costs of storing inventory

C the perishability of capacity

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Topic Area: Introduction

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

Topic Area: Introduction

3 Aggregate planners are concerned with the quality and quantity of expected demand

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4 Aggregate planning is used to establish general levels of employment, output, and inventories over

Topic Area: Introduction

5 The assignment of work to specific machines and people are examples of aggregate planning

Topic Area: Introduction

6 The output from aggregate planning is a detailed business plan covering the next 2 to 12 months

Topic Area: Introduction

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

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

Topic Area: Introduction

9 Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques

Topic Area: Introduction

10 Seasonality in demand has the advantage of leveling out requirements for our product or service

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

Topic Area: Basic Strategies for Meeting Uneven Demand

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

Topic Area: Basic Strategies for Meeting Uneven Demand

13 Linear programming models yield the optimal solution

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14 Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost

Topic Area: Basic Strategies for Meeting Uneven Demand

15 Aggregate planners commonly use trial-and-error methods in developing aggregate plans

Topic Area: Techniques for Aggregate Planning

16 The use of tables and charts in aggregate planning usually enables planners to arrive at an

Topic Area: Techniques for Aggregate Planning

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

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18 Disaggregating an aggregate plan leads to a master schedule

Topic Area: Disaggregating the Aggregate Plan

19 The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start

Topic Area: Disaggregating the Aggregate Plan

20 Departmental budgeting is an example of aggregate planning

Topic Area: Introduction

21 Master schedulers are employed primarily by service organizations

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22 Subcontracting 'in' would apply to periods in which our organization has excess capacity

Topic Area: Basic Strategies for Meeting Uneven Demand

23 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

Topic Area: The Master Scheduling Process

24 A time fence in the master schedule is used to prevent unauthorized people from making changes

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

Topic Area: The Master Scheduling Process

26 In the master production schedule, production is planned for the next period whenever the

available-to-promise quantity becomes negative

Topic Area: The Master Scheduling Process

27 Which of the following best describes aggregate planning?

A the link between intermediate term planning and short term operating decisions

B a collection of objective planning tools

C make or buy decisions

D an attempt to respond to predicted demand within the constraints set by product, process and

Trang 25

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

Topic Area: Aggregate Planning in Services

29 Aggregate planning is capacity planning for:

A the long range

B the intermediate range

C the short range

D typically one to three months

E typically one or more years

The intermediate range typically runs from two to 12 months

Topic Area: Introduction

30 One area to which aggregate planning decisions relate is:

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31 Which of the following is an input to aggregate planning?

Topic Area: Introduction

32 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

The production plan largely results from the aggregate planning effort

Topic Area: Introduction

33 In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with:

A just gallons of paint, without concern for the different colors and sizes

B gallons of paint, but be concerned with the different colors to be produced

C gallons, quarts, pints, and all the different sizes to be produced

D all the different sizes and all the different colors by size

E none of the above

The principle of aggregation is reflected in this answer

Trang 27

34 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

All of these are inputs into the aggregate planning process

Topic Area: Introduction

35 Aggregate planners attempt to balance:

A demand and inventories

B demand and costs

C capacity and inventories

D capacity and costs

E capacity and demand

Capacity and demand are roughly balanced in aggregate planning

Topic Area: Introduction

36 Which of the following is not an input to the aggregate planning process?

A resources available

B demand forecast

C policies on work force changes

D master production schedules

Trang 28

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

Topic Area: Basic Strategies for Meeting Uneven Demand

38 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 these are basic capacity options

Inventory is typically not an option in services

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

A promotion

B backordering

C pricing

D subcontracting

E All are demand options

Subcontracting is an option for altering capacity

Topic Area: Introduction

40 One option for altering the pattern of demand is:

Topic Area: Introduction

41 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

Trang 30

42 One option for altering the availability of manufacturing capacity is:

A pricing

B promotion

C backorders

D inventories

E none of the above apply to manufacturing capacity

Inventory involves using capacity from earlier periods to satisfy demand in later periods

Topic Area: Basic Strategies for Meeting Uneven Demand

43 One option for altering the availability of capacity is:

A use of overtime or slack time

B pricing

C promotion

D backorders

E none of the above

Overtime or slack time alters the availability of capacity

Topic Area: Introduction

44 In order to use the "level capacity strategy," variations in demand are met by:

A varying output during regular time without changing employment levels

B varying output during regular time by changing employment levels

Trang 31

45 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

Topic Area: Basic Strategies for Meeting Uneven Demand

46 Uncommitted inventory is called 

Topic Area: The Master Scheduling Process

47 Aggregate planners seek to match supply and demand:

A at minimum overall cost

B by staying within company policy

C (a) and (b)

D keeping inventories at a minimum

E all of the above

Aggregate plans minimize costs but conform to company policies

Trang 32

48 In practice, the more commonly used techniques for aggregate planning are:

A mathematical techniques

B informal trial-and-error techniques

C (a) and (b) about equally

D simulation models

E linear programming optimization

Trial-and-error techniques are more commonly used

Topic Area: Techniques for Aggregate Planning

49 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 use of a computer

E lack of formal education of the planners

Informal solutions may not be costly or difficult, but they may be less likely to offer up the best plan

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