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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 a chase strategy.
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 that is considered in 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 try to vary supply of materials by all of the following methods except:
A)Hiring employees
B)Using overtime
C)Changing the price charged for the product in a given period
D)Holding inventory
E)Subcontracting
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 used 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
9
In service industries, all of the following are examples of unpredictable duration and fixed price in the price/service duration matrix except:
A)Restaurants
B)Patient service in a hospital
C)Golf courses
D)All you can eat lunch buffet
10
All of the following are important issues in Yield management except:
A)Price structure must appear logical
B)Service options must appear logical
C)Variability in starting time, duration, etc.
D)Managing service process
E)Handling overbooking





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