Question 1.1. (TCO 2) Decisions being made about the
aggregate production plans represent what type of planning? (Points : 5)
Strategic-level
planning
Tactical
planning
Detailed
operational planning
Long-term
planning
Question 2.2. (TCO 2) Which of the following is not one of
the costs considered in aggregate production planning? (Points : 5)
Subcontracting
cost
Capital
equipment cost
Inventory cost
Firing (layoff)
cost
All of the above
are considered in aggregate production planning.
Question 3.3. (TCO 2) If a company strongly prefers that its
aggregate output plan be closer to a level plan than a chase plan, this implies
that it is concerned about minimizing (Points : 5)
inventory
carrying costs.
hiring and
layoff costs.
the cost of
subcontracting.
Both A and C
Both B and C
Question 4.4. (TCO 2 ) Which type of aggregate production
plan is likely to have the least negative impact on the local community and the
workforce? (Points : 5)
Chase plan with
hiring and firing
Chase plan with
overtime
Level plan
The plans do
not differ in their impact on the local community and the workforce.
Question 5.5. (TCO 2) Jones Corporation is preparing an
aggregate production plan for washers for the next four quarters. The company’s
expected quarterly demand is given in the following chart. The company will
have 1,000 washers in inventory at the beginning of the year and wishes to
maintain at least that number at the end of each quarter. The following are
other critical data.
Production cost per unit = $250
Inventory carrying cost per quarter per unit = $10 (based on
quarter-ending inventory)
Hiring cost per worker = $1,000
Firing cost per worker = $2,000
Beginning number of workers = 10
Each worker can produce 100 units per quarter.
Any worker on the staff at the end of the year will not be
fired at that time.
If Jones prefers a level plan, what will be the regular
production rate per quarter? (Points : 5)
5,000 units
4,000 units
6,000 units
Regular
production will vary each month.
Question 6.6. (TCO 2) You are sitting next to a person in
business class on a flight from Los Angeles to Sydney, Australia. You mention
to that person that you got your ticket 2 months ago for only $12,500. The
person responds that she bought her ticket 2 days ago for $7,800. This
sometimes happens because airlines often use an approach called (Points : 5)
capacity
management.
yield
management.
load
management.
workforce
leveling.
