Which Of The Following Aggregate Planning Strategies

Which Of The Following Aggregate Planning Strategies

Mgt 115 Exam . Which of the following aggregate planning strategies is a "demand option"? a. changing price b. subcontracting c. varying production levels d. changing inventory levels e. using part-time workers Q2. Which of the following attempts to manipulate product or service demand? a. inventories b. part-time workers c. subcontracting d. overtime/idle time e. price cuts Q3. Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time. a. true b. false Q4. Which of the following is not an advantage of level scheduling? a. stable employment b. lower absenteeism c. matching production exactly with sales d. lower turnover e. more employee commitment Q5.

Which of the following aggregate planning models is based primarily upon a manager's past experience? a. the linear decision rule b. simulation c. the management coefficients model d. the transportation method e. graphical or charting methods Q6. Aggregate planning occurs over the medium or intermediate future of 3 to 18 months. a. true b. false Q7. In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity. a. true b. false Q8. In aggregate planning, which one of the following is not a basic option for altering demand? a. promotion b. subcontracting c. back ordering d. pricing e. All are demand options.

Q9. Which choice below best describes the counterseasonal demand option? a. producing such products as lawnmowers and sunglasses during the winter b. developing a mix of products that smoothes out their demands c. lowering prices when demand is slack d. using subcontractors only when demand is excessive e. the breaking of the aggregate plan into finer levels of detail Q10. The management coefficients model is a formal planning model built around a manager's experience and performance. a. true b. false Q11. A firm's demand in the next four quarters (its aggregate planning horizon) is forecast to be 80, 50, 40, and 90 units. Last quarter, the firm produced 60 units.

If it uses level scheduling, the firm will. a. hire workers to permit production of 65 units per quarter for the next four quarters b. hire 20 workers c. have an increase in inventory of 20 units in the next quarter d. have a decrease in inventory of 5 units in the next quarter e. change its workforce each quarter so that inventory does not change Q12. The planning tasks associated with staffing, production, inventory, and sub-contracting levels typically fall under a. short-range plans b. intermediate-range plans c. long-range plans d. demand options e. strategic planning Q13. Which of the following aggregate planning strategies is known to lower employee morale? a. yield management b. varying production rates through overtime or idle time c. changing inventory levels d. varying work force size by hiring or layoffs e. back ordering during high demand periods Q14.

The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used. a. true b. false Q15. Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software. a. true b. false Q16. Which of the following lot-sizing techniques results in the lowest holding costs? a. lot-for-lot b. EOQ c. part-period balancing d. Wagner-Whitin algorithm e. the quantity discount model Q17.

Which of the following best describes a gross material requirements plan? a. a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started b. an intermediate range plan for the scheduling of families of products c. a chart illustrating whether capacity has been exceeded d. a table that corrects scheduled quantities for inventory on hand e. a schedule showing which products are to be manufactured and in what quantities Q18. The master production schedule is a forecast of demand for families of products. a. true b. false Q19. Since MRP is quite detailed in nature, it has no influence on the longer-range, less detailed aggregate planning. a. true b. false Q20.

A material requirements plan contains information with regard to all of the following except a. quantities and required delivery dates of all subassemblies b. quantities and required delivery dates of final products c. the capacity needed to provide the projected output rate d. inventory on hand for each final product e. inventory on hand for each subassembly Q21. One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are) a. modular bills b. time phasing c. time fences d. lot sizing e. closed loop system Q22. Planning bills of material are bills of material for "kits" of inexpensive items such as washers, nuts, and bolts. a. true b. false Q23. Each X requires 2 of component Y; each Y requires 4 of part Z.

The lead time for assembly of X is 1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is ________ weeks. a. 6 b.

7 c. 8 d. 10 e. cannot be determined Q24. The Wagner-Whitin algorithm is the most widely used MRP lot-sizing technique. a. true b. false Q25. Material requirements plans specify a. the quantities of the product families that need to be produced b. the quantity and timing of planned order releases c. the capacity needed to provide the projected output rate d. the costs associated with alternative plans e. whether one should use phantom bills of materials or not Q26.

Each R requires 2 of component S and 1 of part T. The lead time for assembly of R is 3 days. The lead time for the manufacture of S is 5 days. The lead time for the manufacture of T is 10 days. The cumulative lead time for R is ________ days. a.

6 b. 9 c. 13 d. 17 e. cannot be determined Q27. A Gantt load chart shows the loading and idle time of several departments, machines, or facilities. a. true b. false Q28.

The assignment method provides an optimum, one-to-one assignment of jobs to resources. a. true b. false Q29. Sequencing (or dispatching) a. assigns dates to specific jobs or operations steps b. assigns jobs to work centers c. specifies the order in which jobs should be done at each center d. assigns workers to jobs e. assigns workers to machines Q30. Orders are processed in the sequence in which they arrive if (the) ________ rule sequences the jobs. a. earliest due date b. slack time remaining c. first come, first served d. critical ratio e. Johnson's Q31. One criterion for developing effective schedules is minimizing completion time. a. true b. false Q32.

Which scheduling technique should be employed when due dates are important for a job order? a. forward scheduling b. loading c. dispatching d. backward scheduling e. master scheduling Q33. The constant work-in-process (ConWIP) card aids input-output control by limiting the amount of work in a work center. a. true b. false Q34.

The process-focused facilities and repetitive facilities generate forward-looking schedules, but process-focused facilities do this with JIT and kanban while repetitive facilities generally use MRP. a. true b. false Q35. If an assignment problem consists of 5 workers and 4 projects, a. one worker will not get a project assignment b. one project will be assigned two workers c. the fifth worker will split time among the four projects d. one project will not get a worker assigned e.

The problem cannot be solved by an assignment method. Q36. Three jobs are to be assigned to three machines. Cost for each job-machine combination appears in the table below. Perform the first two steps of the assignment method (subtract the smallest number in each row and subtract the smallest number in each column; then cover with straight lines).

At this point in the problem-solving process a. the row for Job 1 contains the values 5, 6, and 0 b. calculations are complete, and the problem is ready for an optimal set of assignments c. the column for Machine B indicates that it should be retired d. Job 1 should be performed on Machine B e. Job 1 should be performed on Machine A Q37. The theory of constraints has its origins in a. linear programming theory b. the theory of economies of scale c. material requirements planning d. the theory of finite capacity planning e. Goldratt and Cox's book, The Goal: A Process of Ongoing Improvement Q38.

Which of the following statements regarding scheduling at Delta Airlines is false? a. About one flight in twenty is disrupted by weather events. b. Schedule changes at one airport have a ripple effect that may have impacts in many others. c. Delta's high-tech computer and communications system is located in Atlanta. d. Delta's rapid rescheduling uses mathematical scheduling models. e.

Delta's rapid rescheduling promotes air safety and limits traveler inconvenience, but has not resulted in money savings for Delta. Q39. Reducing distance is a common JIT goal, both inside and outside facilities. Outside, it manifests itself in attempts to get suppliers closer to facilities; inside, it is a common layout tactic. a. true b. false Q40. Which one of the following scenarios represents the use of a kanban to reduce inventories? a.

A supervisor tells the operators to stay busy and start producing parts for next month. b. A "supplier" work center signals the downstream workstation that a batch has been completed. c. A supervisor signals to several work centers that the production rate should be changed. d. A "customer" work center signals to the "supplier" workstation that more parts are needed. e. An operator asks the next station's operator to help him fix his machine.

Q41. If setup times and costs can be reduced enough, the JIT ideal of "Lot Size = 1" can be achieved. a. true b. false Q42. The list of 5S's, although it looks like a housekeeping directive, supports lean production by a. identifying non-value items and removing them, in the "sort/segregate" item b. reducing wasted motion, in the "standardize" item c. increasing variability through standardized procedures, in the "standardize" item d. eliminating wasted motion through ergonomic studies, in the "support" item e. building good safety practices, in the "shine/sweep" item Q43. A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action? a.

It used a pull system to move inventory. b. It produced in ever smaller lots. c. It required deliveries directly to the point of use. d. It picked the supplier that offered the lowest price based on quantity discounts. e. It worked to reduce the company's in-transit inventory.

Q44. Transportation is an element of the Seven Wastes because a. all movement of material between plants is waste b. movement of equipment or people that adds no value is waste c. the transportation method of linear programming reduces travel requirements d. moving material between plants, between work centers, and handling more than once is waste e. transportation of any kind is a waste Q45. Hidden problems are generally uncovered during the process of reducing inventory. a. true b. false Q46. With level schedules, a few large batches, rather than frequent small batches, are processed. a. true b. false Q47. A firm wants to develop a level material use schedule based on the following data.

What should be the setup cost? a. $0.45 b. $4.50 c. $45 d. $450 e. $500 Q48. The first step in reducing setup times is the separation of setup into preparation activities and actual setup, so that as much work as possible can be done while the machine or process is operating. a. true b. false Q49. JIT systems carry inventory just in case something goes wrong. a. true b. false Q50. Inventory has only one positive aspect, which is availability; inventory has several negatives, including increased material handling, obsolescence, and damage. a. true b. false

Paper For Above instruction

In this analysis, I evaluate the array of concepts related to aggregate planning and inventory management, as outlined in the provided exam questions. The questions span various facets of operations management, including demand management strategies, production scheduling techniques, material requirements planning (MRP), just-in-time (JIT) systems, and the theory of constraints. By exploring these topics, I aim to elucidate core principles and assess their practical applications within manufacturing and service environments.

Introduction

Aggregate planning is a fundamental component of operations management that deals with balancing demand and supply over a medium-term horizon. It informs decisions related to workforce levels, production rates, inventory holdings, and other capacity constraints (Heizer & Render, 2014). The strategies employed in aggregate planning can be categorized broadly into demand options, such as pricing and promotion, and supply options, including workforce adjustments, subcontracting, and inventory management (Slack et al., 2010). This strategic planning ensures an organization can meet fluctuating demand efficiently without excessive costs or capacity shortages.

Demand Management Strategies

Demand options aim specifically to influence the customer demand for products or services. Price adjustments, such as discounts during slack demand periods, are classic examples, often used to smooth demand patterns (Heizer & Render, 2014). Promotions are another demand management tool that stimulate demand when necessary. Conversely, inventory management and staffing adjustments tend to be supply-side strategies, which decouple production levels from immediate demand. The impact of these strategies on demand is crucial in preventing periods of over- or under-utilization of capacity.

Production Scheduling and Capacity Planning

Scheduling techniques like level scheduling aim to maintain a steady workforce and production rate, reducing costs associated with hiring, layoffs, and fluctuating work hours (Heizer & Render, 2014). However, such strategies may lead to increased inventory costs if sales fluctuate significantly. The use of simulation models or management experience also influences planning, especially in more flexible or uncertain environments (Cachon & Tayur, 2000). Shootings fast-food restaurants' aggregation of units exemplifies how rapid demand fluctuations require finer scheduling horizons, emphasizing the need for precise timing and resource allocation.

Inventory Management and Lot-Sizing

Optimal lot-sizing balances holding costs against ordering or setup costs (Nahmias, 2013). Techniques such as Economic Order Quantity (EOQ) or Wagner-Whitin algorithms inform these decisions, minimizing total relevant costs (Silver et al., 2016). The gross material requirements plan provides a high-level overview of procurement and production needs, aligning inventory levels with anticipated demand forecasts (Miller et al., 2020). Properly managing dependent demand items, such as components in assembly, relies on calculating gross requirements based on final product demand, ensuring just-in-time inventory levels.

Material Requirements Planning (MRP) and Its Role

MRP systems utilize detailed demand forecasts, lead times, and inventory data to generate planned order releases for components and subassemblies (Volpe & Freedman, 2005). The Wagner-Whitin algorithm is a prominent lot-sizing technique within MRP that minimizes costs by determining order quantities over time, considering varying demand patterns (Wagner & Whitin, 1958). MRP’s influence extends to longer-term aggregate plans by refining production schedules and inventory levels, enabling responsiveness to demand fluctuations while controlling costs (Cheng, 2002).

Scheduling and Dispatching

Dispatching and sequencing rules like first come, first served, earliest due date, or critical ratio strategically determine the order of jobs in production lines, directly affecting lead times and throughput (Pinedo, 2016). Effective scheduling reduces makespan and work-in-process inventory, with tools like Gantt charts visually depicting load and idle times across work centers (Heizer & Render, 2014). Techniques such as the assignment method optimize task-resource allocation to improve efficiency (Hunton & Walker, 2015).

The Theory of Constraints (TOC)

Originating from Goldratt and Cox’s seminal work, the TOC emphasizes identifying and managing bottlenecks to improve overall system performance (Goldratt & Cox, 1984). By focusing on constraint management, organizations can elevate throughput and reduce idle times, fundamentally transforming operations. The application of TOC spans manufacturing, project management, and supply chain coordination, making it a powerful paradigm for continuous improvement (Shah et al., 2017).

Just-in-Time and Waste Reduction

JIT systems aim to produce only what is needed, when it is needed, with minimal inventory levels. Techniques like kanban signals facilitate pull production, reducing excess inventory and waste (Ohno, 1988). Efforts to minimize transportation, reduce setup times, and implement 5S practices further contribute to waste reduction and process efficiency (Schonberger, 1986). Challenges include balancing setup costs with lot sizes, striving toward the ideal “Lot Size=1” in JIT philosophy, which minimizes WIP and inventory costs.

Conclusion

In conclusion, the integration of demand management strategies, precise scheduling, effective inventory control, and the application of advanced planning tools such as MRP and TOC is essential for operational efficiency. While the theoretical frameworks provide a solid foundation, real-world application requires nuanced understanding and adaptation. Future improvements could include greater integration of real-time data, enhanced flexibility in scheduling, and ongoing emphasis on waste elimination. Questions remain regarding the best approaches to balance inventory levels with responsiveness, and how technological advancements will transform these practices in dynamic environments.

References

• Cheng, T. C. E. (2002). Production Planning and Control for Consumer Goods Manufacturing. World Scientific Publishing.
• Cachon, G., & Tayur, S. (2000). Quantitative Models for Supply Chain Coordination. Management Science, 46(3), 351–368.
• Goldratt, E. M., & Cox, J. (1984). The Goal: A Process of Ongoing Improvement. North River Press.
• Heizer, J., & Render, B. (2014). Operations Management (11th ed.). Pearson.
• Hunton, J. E., & Walker, P. (201