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Multiple Choice Quiz
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1
Aggregate planning is intermediate range planning for goods and services.
A)True
B)False
2
Aggregate planning typically covers a time interval of 2 to 4 years.
A)True
B)False
3
Sales and operations planning is intermediate-range decisions to balance supply and demand, integrating financial and operations planning.
A)True
B)False
4
Aggregate planning is concerned with both the quantity and timing of anticipated demand.
A)True
B)False
5
Supply options include pricing and using part-time workers.
A)True
B)False
6
Use of backorders is a demand option rather than a supply option.
A)True
B)False
7
Inventories can enable firms to increase capacity in future periods.
A)True
B)False
8
A level capacity strategy attempts to keep capacity level with demand.
A)True
B)False
9
A level strategy is more dependent on forecast accuracy than is a chase strategy.
A)True
B)False
10
An advantage of a level approach is lower inventories than with a chase approach.
A)True
B)False
11
A level approach works best when demand is stable.
A)True
B)False
12
Automobile assembly plants and oil refineries are well-suited for a chase approach.
A)True
B)False
13
Yield management involves the application of pricing strategies to alter supply.
A)True
B)False
14
Goods producers are the primary users of yield management because it enhances their bottom lines.
A)True
B)False
15
A master schedule is used to assign workers to specific jobs.
A)True
B)False
16
Rough cut capacity planning is used to test the feasibility of a proposed master schedule.
A)True
B)False
17
Capacity requirements can be more difficult to predict for services than for manufacturing.
A)True
B)False
18
Disaggregating the aggregate relates to
A)yield management
B)planning a chase approach
C)master scheduling
D)short-range planning
19
Which one is not considered a capacity option?
A)Use of backorders.
B)Use of overtime.
C)Use of subcontractors.
D)Use of temporary workers.
20
Which one is not a disadvantage of a level approach compared to a chase approach?
A)greater inventory costs.
B)increased overtime and idle time
C)varying resource utilization
D)varying workforce levels
21
The terms frozen, slushy, and liquid are most closely associated with
A)yield management
B)time fences
C)rough-cut capacity planning
D)a chase strategy
22
The term available-to-promise is most closely associated with
A)sales and operations planning
B)rough-cut capacity planning
C)disaggregating the aggregate plan
D)master production scheduling
23
Which one is unrelated to the master scheduling process?
A)yield management
B)rough-cut capacity planning
C)time fences.
D)available-to-promise





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