True / False Questions 

1. Aggregate planning is intermediate-range capacity planning that generally covers a time horizon that one to three months. 

FALSE

 

Difficulty: MediumTLO: 1Taxonomy: Knowledge 

2. The score of accumulation planning is to attain a production plan that attempts come balance the organization"s resources and meet expected demand. 

TRUE

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

3. Aggregate planners are involved with the quality and also quantity of intended demand. 

FALSE

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

4. Aggregate planning is used to develop general levels of employment, output, and also inventories over an intermediate-range of time. 

TRUE

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

5. The assignment of job-related to details machines and people are instances of accumulation planning. 

FALSE

 

Difficulty: MediumTLO: 1Taxonomy: Knowledge 

6. The calculation from aggregate planning is a thorough business arrangement covering the following 2 come 12 months. 

FALSE

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

7. Demand deserve to be changed in accumulation planning by promotion and producing added product making use of overtime. 

FALSE

 

Difficulty: HardTLO: 2Taxonomy: Knowledge 

8. Capacity can be amendment in accumulation planning through promotion and producing added product utilizing overtime. 

FALSE

 

Difficulty: HardTLO: 2Taxonomy: Knowledge 

9. Organizations encountering seasonal alters in need are prevented indigenous using aggregate planning techniques. 

FALSE

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

10. Seasonality in need has the advantage of leveling out needs for ours product or service. 

FALSE

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

11. A level volume strategy is also known as a chase need strategy 

FALSE

 

Difficulty: EasyTLO: 2Taxonomy: Knowledge 

12. An benefit of a "chase" strategy for aggregate planning is the inventories deserve to be kept relatively low. 

TRUE

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

13. Linear programming models productivity the optimal solution. 

TRUE

 

Difficulty: MediumTLO: 3Taxonomy: Knowledge 

14. Ultimately the overriding variable in choosing a strategy in accumulation planning is overall cost. 

TRUE

 

Difficulty: HardTLO: 2Taxonomy: Knowledge 

15. Aggregate planners typically use trial and also error methods in developing accumulation plans. 

TRUE

 

Difficulty: EasyTLO: 3Taxonomy: Knowledge 

16. The usage of tables and charts in accumulation planning usually enables planners to come at an optimal plan. 

FALSE

 

Difficulty: HardTLO: 3Taxonomy: Knowledge 

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

FALSE

 

Difficulty: MediumTLO: 3Taxonomy: Knowledge 

18. Disaggregating an aggregate plan leader to a understand schedule. 

TRUE

 

Difficulty: MediumTLO: 1Taxonomy: Knowledge 

19. The master schedule shows the quantity and also timing for delivery of a product, but not the days production will need to start. 

TRUE

 

AACSB: ASDifficulty: EasyTLO: 1Taxonomy: Knowledge 

20. Departmental budgeting is an instance of accumulation planning. 

TRUE

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

21. Master schedulers are employed mainly by company organizations. 

FALSE

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

22. Subcontracting "in" would use to periods in which ours organization has excess capacity. 

TRUE

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

23. Available-to-promise in the first week is equal to start inventory plus MPS quantity, if any, less committed client orders prior to the next MPS quantity. 

TRUE

 

Difficulty: MediumTLO: 1Taxonomy: Knowledge 

24. A time fence in the grasp schedule is provided to stop unauthorized world from making transforms to the schedule. 

FALSE

 

Difficulty: MediumTLO: 1Taxonomy: Knowledge 

25. After the first period of the to plan horizon, available-to-promise is computed only for those durations in which over there is an MPS quantity. 

TRUE

 

Difficulty: MediumTLO: 1Taxonomy: Knowledge 

26. In the understand production schedule, manufacturing is planned because that the next period whenever the available-to-promise amount becomes negative. 

FALSE

 

Difficulty: HardTLO: 1Taxonomy: Knowledge 

 

Multiple an option Questions
 

27. Which the the following finest describes aggregate planning? 

A. the link in between intermediate term planning and short term operating decisionsB. a arsenal of target planning toolsC. make or buy decisionsD.

You are watching: Aggregate planners seek to match supply and demand:

 an effort to respond to predicted need within the constraints set by product, procedure and ar decisionsE. manpower planning

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

28. Accommodating peak demands and effectively making use of labor resources during periods the low demand would be the score of aggregate planners in  

A. ManufacturingB. MilitaryC. ArcheologyD. LibrariesE.
 Financial Services

 

Difficulty: HardTLO: 1Taxonomy: Knowledge 

29. Aggregate to plan is capacity planning for: 

A. the long rangeB.
 the intermediate rangeC. the short rangeD. typically one to 3 monthsE. typically one or an ext years

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

30. One area to which accumulation planning decisions relate is: 

A. job sequencingB. customer bespeak quantitiesC.
 inventory levelsD. locationE. layout

 

Difficulty: HardTLO: 1Taxonomy: Knowledge 

31. Which of the adhering to is an entry to accumulation planning? 

A. beginning inventoryB. forecasts because that each period of the scheduleC. customer ordersD.
 all the the aboveE. quantity discounts

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

32. Essentially, the output of aggregate planning is the: 

A. marketing planB.
 production planC. rough-cut volume planD. assignment planE. material demands plan

 

Difficulty: HardTLO: 1Taxonomy: Knowledge 

33. In act "aggregate planning" for a firm developing paint, the aggregate planners would certainly most likely deal with: 

A.
 just gallons of paint, without worry for the different colors and sizesB. gallons the paint, however be involved with the different colors to be producedC. gallons, quarts, pints, and also all the various sizes to it is in producedD. all the different sizes and all the various colors by sizeE. none the the above

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

34. Aggregate planning needs which of the complying with information? 

A. a projection of expected demandB. current level of inventoryC. (a) and also (b)D. policies about employment levelsE.
 all the the above

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

35. Aggregate planners attempt to balance: 

A. demand and inventoriesB. demand and costsC. capacity and also inventoriesD. capacity and also costsE.
 capacity and also demand

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

36. Which of the following is no an input to the aggregate planning process: 

A. resources availableB. demand forecastC. policies on work pressure changesD.
 master production schedulesE. cost information

 

Difficulty: HardTLO: 2Taxonomy: Knowledge 

37. Which one of the adhering to would no be thought about a decision option for objectives of accumulation planning? 

A. inventory levelsB. manpower levelsC. pricingD.
 production costsE. promotion

 

Difficulty: HardTLO: 2Taxonomy: Knowledge 

38. Which that the following is no a straightforward option for transforming the ease of access of capacity in a business environment? 

A. overtimeB. hiring/layoffC. part timeD.
 inventoryE. All of these are basic capacity options.

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

39. Which one of the adhering to is no a basic option for changing demand? 

A. promotionB. backorderingC. pricingD.
 subcontractingE. All are need options.

 

AACSB: ASDifficulty: MediumTLO: 2Taxonomy: Knowledge 

40. One option for changing the sample of need is: 

A.
 backordersB. overtimeC. part-time workersD. inventoriesE. subcontracting

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

41. Which of the adhering to would no be a strategy connected with adjusting accumulation capacity to meet expected demand? 

A. subcontractB. vary the dimension of the workforceC. vary the soot of workforce utilizationD. allow inventory level to varyE.
 use backorders

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

42. One alternative for altering the availability of production capacity is: 

A. pricingB. promotionC. backordersD.
 inventoriesE. none that the above apply to production capacity

 

AACSB: ASDifficulty: MediumTLO: 2Taxonomy: Knowledge 

43. One choice for altering the availability of volume is: 

A.
 use of overtime or slack timeB. pricingC. promotionD. backordersE. none the the above

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

44. In stimulate to use the "level volume strategy," sport in need are met by: 

A. varying calculation during consistent time without changing employment levelsB. varying output during regular time by changing employment levelsC. (a) and also (b)D.
 using combination of inventories, overtime, component time, and ago ordersE. price adjustments

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

45. In utilizing the "chase strategy" sport in demand could be met by: 

A. varying calculation during regular time without changing employment levelsB.
 varying output during constant time by transforming employment levelsC. (a) and also (b)D. varying inventory levelsE. price increases

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

46. Uncommitted perform is called  

A.
 Available come promise inventoryB. Free inventoryC. Safety stockD. Lead time inventoryE. Obsolete inventory

 

Difficulty: MediumTLO: 2Taxonomy: Knowledge 

47. Aggregate planners seek to match supply and demand: 

A. at minimum in its entirety costB. by continuing to be within agency policyC.
 (a) and also (b)D. keeping inventories in ~ a minimumE. all that the above

 

Difficulty: EasyTLO: 1Taxonomy: Knowledge 

48. In practice, the much more commonly used methods for aggregate planning are: 

A. mathematical techniquesB.
 informal trial-and-error techniquesC. (a) and (b) about equallyD. simulation modelsE. linear programming optimization

 

Difficulty: EasyTLO: 3Taxonomy: Knowledge 

49. The key disadvantage(s) the informal techniques used for accumulation planning is(are): 

A. they room expensive come doB.
 they might not an outcome in the ideal planC. they take it a lengthy time come doD. they call for use of a computerE. lack the formal education of the planners

 

Difficulty: EasyTLO: 3Taxonomy: Knowledge 

50. Inventory info for for sure ABC:

*

What is the intended inventory in ~ the end of April, 1999? 

A. 350B.
 250C. 150D. 50E. none the the above

 

AACSB: ASDifficulty: EasyTLO: 4Taxonomy: Application 

51. Inventory information for firm ABC:

*

What to be the inventory in ~ the finish of March, 1999? 

A. 350B. 250C.
 150D. 50E. none of the above

 

AACSB: ASDifficulty: MediumTLO: 4Taxonomy: Application 

52. Linear programming to produce an accumulation plan: 

A.
 will create the best plan if accurate inputs are usedB. is the most widely provided techniqueC. (a) and also (b)D. will create a setup that might not it is in the best planE. requires one excel spread out sheet

 

Difficulty: HardTLO: 3Taxonomy: Knowledge 

53. Simulation to create an aggregate plan: 

A. will create the best planB. is the many widely supplied techniqueC. both (a) and also (b)D.
 will create a arrangement that may not it is in the ideal planE. requires a minimum the 4 iterations to it is in accurate

 

Difficulty: HardTLO: 3Taxonomy: Knowledge 

54. Which term is many closely linked with the ax disaggregation? 

A. subcontractingB.
 master scheduleC. diversityD. varying inventory levelsE. firing and laying off

 

Difficulty: MediumTLO: 1Taxonomy: Knowledge 

55. The direct result of disaggregating the accumulation plan is the: 

A. marketing planB. production planC. rough-cut volume planD.
 master scheduleE. material requirements plan

 

Difficulty: MediumTLO: 1Taxonomy: Knowledge 

56. Moving native the accumulation plan come a grasp production schedule requires: 

A. rough reduced capacity planningB.
 disaggregationC. sub-optimizationD. strategy formulationE. chase strategies

 

Difficulty: HardTLO: 1Taxonomy: Knowledge 

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

A. beginning inventoryB. safety stock inventoryC.

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 available-to-promise inventoryD. high margin inventoryE. none that the above

 

AACSB: CADifficulty: EasyTLO: 1Taxonomy: Knowledge 

58. Proactive and Reactive aggregate planning strategies space best associated with: 

A. Input and also OutputB. Make and also BuyC. Quantitative and also QualitativeD. Exact and ApproximateE.
 Demand and Capacity options