OPERATIONS MANAGEMENT Chapter 13 – Aggregate Planning

1. OPERATIONS MANAGEMENTChapter 13 – Aggregate Planning Classroom discussion questions to accompany Heizer/Render Principles of Operations Management, 6e and Operations Management, 8e (to be used in conjunction with wireless polling devices) Jay Heizer Barry Render Chapter 13

2. Aggregate planning is concerned with determining the quantity and timing of production for: • 0-1 month ahead. • 1-2 months ahead. • 3-18 months ahead. • 18-24 months ahead. • 24-48 months ahead. Chapter 13

3. Aggregate planning is concerned with determining the quantity and timing of production for the: • Short range. • Medium range. • Long range. Chapter 13

4. Usually, the objective of aggregate planning is to: • Smooth employment levels. • Drive down inventory levels. • Minimize the cost over the planning period. • Meet high levels of service. Chapter 13

5. The following is a long-range planning activity: • Production planning and budgeting. • Determining job assignments. • Dispatching. • Facility location. Chapter 13

6. In developing an aggregate plan, the primary job of the planner is to: • Select the demand forecast. • Select facility capacity. • Select inventory capacity. • Select the rate of output of the facility over the planning horizon. Chapter 13

7. Determining the quantity and timing of production for the intermediate future is: • Master production scheduling. • Disaggregation. • Aggregate planning. Chapter 13

8. The following is not a capacity option in aggregate planning: • Changing inventory levels. • Varying workforce by hiring or layoffs. • Back ordering during high demand periods. • Subcontracting. • Using part-time workers. Chapter 13

9. The following is not a demand option in aggregate planning: • Influencing demand. • Varying production rate through overtime or idle time. • Back ordering during high demand periods. Chapter 13

10. A planning strategy that uses two or more controllable variables to set a production plan is referred to as : • Level scheduling. • Chase strategy. • Mixed strategy. Chapter 13

11. Which aggregate planning method produces an optimal plan for minimizing costs? • Graphical methods. • Charting methods. • Linear programming. • Management coefficients method. • Linear decision rule. Chapter 13

12. Which aggregate planning method builds a formal decision model around a manager’s experience and performance? • Graphical methods. • Charting methods. • Linear programming. • Management coefficients method. • Linear decision rule. Chapter 13

13. Which aggregate planning technique uses a regression analysis of past production decisions made by managers? • Graphical methods. • Charting methods. • Linear programming. • Management coefficients method. • Linear decision rule. Chapter 13

14. “Yield management” is best described as: • A situation where management yields to labor demands. • A situation where the labor union yields to management demands. • A process designed to increase the rate of output. • Capacity allocation to different types of customers in order to maximize profits. • Management’s selection of product mix yielding maximum profits. Chapter 13

15. What types of industries are typically associated with yield management? • Those that have a predictable duration of use and tend to have a fixed price. • Those that have unpredictable duration of use and have a fixed price. • Those that tend to have a predictable duration of use and a variable price. • Those that have unpredictable duration of use and a variable price. Chapter 13