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1 | | Rough-cut capacity planning is designed to determine if there are obvious capacity constraints requiring schedule changes. |
| | A) | True |
| | B) | False |
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2 | | A level strategy plan is a plan with a stable work force working at a constant output rate. |
| | A) | True |
| | B) | False |
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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 |
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4 | | Production planning considers the following variables: work force size, inventory levels, and production rate. |
| | A) | True |
| | B) | False |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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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