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Fundamentals of Operations Management, 4/e
Mark M. Davis, Bentley College
Nicholas J. Aquilano, University of Arizona
Richard B. Chase, USC, School of Business

Aggregate Planning

Multiple Choice Quiz



1

Rough-cut capacity planning is designed to determine if there are obvious capacity constraints requiring schedule changes.
A)True
B)False
2

A level strategy plan is a plan with a stable work force working at a constant output rate.
A)True
B)False
3

Marginal or incremental costs in production planning are only those unique costs that differ from one aggregate plan to another.
A)True
B)False
4

Production planning considers the following variables: work force size, inventory levels, and production rate.
A)True
B)False
5

The best strategy for the C & A Company examples was:
A)Exact production, vary work force
B)Constant work force, vary inventory and stockout
C)Constant low work force, subcontract
6

Which of the following is NOT an objective of production planning on an aggregate basis?
A)Determine inventory sizes
B)Determine total work force
C)Determine total production
D)Determine long term capacity
7

Production Activity Control focuses on:
A)Resource requirements for long-run capacity plans
B)Scheduling and shop floor control activities
C)Purchasing of standard items
8

Which of the following is a mixed strategy for absorbing demand fluctuations?
A)Altering the production rate by changing the size of the labor force
B)Using subcontracting to meet peak fluctuations in demand
C)Using overtime, inventory, and subcontracting
D)Keeping the work force and production rate constant, and allowing fluctuations in the inventory level
9

The scheduling stage to specify various options for a product is called:
A)Final assembly scheduling
B)Input/output planning
C)Master production scheduling
D)Rough-cut planning
10

Which of the following is an example of manipulating supply as opposed to manipulating demand?
A)Adding contracyclical products
B)Varying the level of customer service through order backlogs
C)Varying marketing through price cuts, increased promotion, and advertising
D)Varying the level of inventory
11

Which one of the following is not included in a long-range strategic plan?
A)Quality objective
B)Customer service objectives
C)Financial objective
D)Market-share objective
E)Workforce objective
12

Which of the following is a characteristic of an aggregate production plan?
A)It plans and schedules the production of components
B)It calculates the load for most work centers
C)It plans the production of families of products
D)It calculates loads for critical, bottleneck work centers
E)It plans and schedules the finished goods build schedule




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