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Multiple Choice Quiz
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1
Which of the following accurately describes a chase strategy?
A)The firm produces the same amount each day over the planning period and deals with the variations in demand through the use of inventory or overtime.
B)The firm produces at the same level for several months, and then adjusts production to another level and produces at that level for several more months.
C)The firm produces exactly what is needed every month.
D)All of the above could describe the strategy, depending on the organization.
E)None of the above accurately describes it.
2
Production planning strategies include:
A)Chase strategy
B)Level strategy
C)Stable workforce-variable work hours
D)Transportation Method
E)A, B, and C
3
Which of the following is not a cost relevant to aggregate production planning?
A)Basic production costs
B)Quantity discounts
C)Costs associated with changes in the production rate
D)Inventory holding costs
E)Backordering costs
4
Aggregate planners balance:
A)demand and overtime
B)demand and inventories
C)demand and capacity
D)supply and inventories
E)supply and cost
5
One option for altering the pattern of demand is:
A)hiring employees
B)using overtime
C)carrying inventory
D)subcontracting
E)pricing
6
The aggregate planning techniques that can be use to find optimal solutions are:
A)Cut-and-try charting
B)Graphic method
C)Linear programming and the transportation model
D)A and B
E)A, B, and C
7
The transportation model is appropriate to aggregate planning if the cost and variable relationships are linear and demand can be treated as probabilistic.
A)True
B)False
8
Yield management works best when all of the following exist except:
A)Capacity is completely flexible
B)Demand can be segmented
C)Inventory is perishable
D)Demand is highly variable
E)Products can be sold in advance





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