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Pages and Files
Ch. 1 Introduction
Ch. 2 Strategy and Productivity
Ch. 3 Forecasting
Ch. 4 Product and Service Design
Ch. 5 Strategic Capacity Planning for Products and Services
Ch. 5s Decision Making
Ch. 6 Process Selection and Facility Layout
Ch. 7 Design of Work Systems
Ch. 8 Location Planning and Analysis
Ch. 8s Transportation Model
Ch. 9 Management of Quality
Ch.10 Quality Control
Ch.11 Supply Chain Management
Ch.13 Aggregate Planning
Ch.14 MRP and ERP
Ch.17 Project Management
Chap11 pages 517-521
Summary for Chapter 10
Ch.13 Aggregate Planning
: Chapter 13: Aggregate Planning
is an "intermediate-range capacity planning technique, usually covering a time frame of 2-12 months for a production process, in order to keep the costs of operations at a minimum." Companies use aggregate planning to help make decisions about their capacity because seasonal variations in demand are difficult to predict accurately. The main goal of the company is to match resources with the expected demand. This goal is achieved by taking into account a diverse amount of factors such as: decisions on output rates, overtime, employment levels and changes, inventory levels and changes, back orders, and subcontracting work.
A more extensive form of aggregate planning is sales and operations planning.
Sales and operations planning
are "intermediate-range decisions to balance supply and demand, integrating financial and operations planning". Sales and operations planning decisions are made using demand forecasts, financial limits, and organization's capacity constraints. The sales and operations plan carries information that impacts the supply chain.
1) Which of the following is a computerized model that can be tested under different scenarios to identify acceptable solutions?
a. test model
b. difference model
d. changing model
e. growth model
The answer is C. ( page 627)
2) Which of the following is
included in a planning sequence for aggregate planning?
a. business plan
b. aggregate plan
c. master schedule
d. master plan
all of the above are included
The answer is E. (page 613)
3) What are the
most significant factors an organization has to consider when choosing a strategy for aggregate planning?
a. labor, demand, and time
company policy, flexibility, and costs
c. labor, time, and costs
d. company policy, flexibility, and demand
e. flexibility, time, and costs
The answer is B. ( page 619) (pg. 609: 9th edition)
4) What are the key issue(s) in aggregate planning?
a. how to handle variations in demand
b. how to handle changes
how to manage cost
d. both a & b
e. none of the above
The answer is C. (page 614)
5) What are the three types of aggregate planning?
long-range plans, intermediate plans, and short-range plans.
b. Long term demand, short term demand, economies of scale
c. minimization curves, inflections points in cost schedules, profit maximization
d. pricing models, statistical evaluation, tax shelters
e. freight costs, J-I-T delivery, logistics
The answer is A. (page 612)
6) Which of the following are examples of service organizations that use aggregate planning?
d. A & B
all of the above
ANSWER: E. (found on page 629) (pg. 618 &619: 9th edition)
7) What are the
duties of master scheduling?
A) Provide delivery dates for orders, deal with problems, and schedule aggregate plans.
Evaluate the impact of new orders, provide delivery dates for orders, and deal with problems.
C) Schedule aggregate plans, evaluate impact of new orders, deal with problems of previous orders.
D) Evaluate the impact of old orders, provide delivery dates for new orders, and disaggregate plans.
E) Deal with new and old problems, evaluate the impact of production, provide delivery dates for new orders.
Answer: B (pg. 620: 9th edition)
8) What are the differences between manufacturing and services for aggregate planning?
a. Demand for service can be difficult to predict
b. Capacity availability
c. Labor flexibility
d. Services occur when they are rendered
All of above
Answer is E. (page 629-630)
9) Which of the following are Demand Options?
c) Using back orders
d) Creating new demand
all of the above
Answer: E P616
10) Which of the following is NOT a supply option?
a) Hire and lay off workers
b) Overtime/slack time
e) All of the above ARE supply options
Answer: D P616
11) Which of the following describes the general procedure steps for aggregate planning?
determine demand, determine capacities, identify important policies, determine costs, develop plans
b) determine capacities, determine demand, determine costs, develop plans, identify important policies
c) identify important policies, determine costs, determine demand, determine capacities, develop plans
d) determine demand, identify important policies, determine costs, develop plans, determine capacities
e) none of the above
Answer: A p. 621
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