6 Handout 1

Question 1

This involves decisions covering one (1) to three (3) years, such as adding facilities and equipment that have a long lead time.

Answer 1

Long range

Question 2

This involves decisions covering two (2) to 12 months, such as adding equipment, personnel, and shifts. This may also include subcontracting of production. This is also known as oggregate planning.

Answer 2

Medium range

Question 3

This involves decisions covering two (2) to three (3) months such as scheduling production and people and allocating machinery. This is also referred to as production planning.

Answer 3

Short range

Question 4

This is used for work that is non-routine, with a unique set of objectives to be accomplished in a limited time frame.

Answer 4

Project

Question 5

This usually operates on a relatively small scale. It is used when a low volume of high variety goods or services will be needed.

Answer 5

Job shop

Question 6

This is used when a moderate volume of goods or services is desired, and it can handle a moderate variety of products and/or services.

Answer 6

Batch

Question 7

This is used when higher volumes of more standardized goods or services are needed, and monotonous processing is required.

Answer 7

Assembly

Question 8

This is used when a very high volume of non-discrete, highly standardized output is desired.

Answer 8

Continuous

Question 9

Refer to a firm’s ability to adjust customer demand to fit that demand to current available capacity.

Answer 9

Demand options

Question 10

This can be accomplished through the use of advertising, pricing, promotions, and price cuts.

Answer 10

Influence demand

Question 11

These occur when an organization gets orders that they cannot fulfill. In many cases, customers are willing to wait.

Answer 11

Backorders

Question 12

This can be used to balance demand on particular time periods.

Answer 12

New or counter-seasonal demand

Question 13

Supply options refer to the ability of an organization to adjust its available resource capacity to meet and.

Question 14

Hire and lay off employees. This involves flexibility in the workforce due to demand peaks and decline.

Question 15

Overtime/idle time. This involves the ability/willingness of the workforce to run some overtime for periods with very high demand.

Question 16

Part-time or temporary workers. This involves hiring people for a specified period of time only, with no intention of keeping them in the company for good.

Question 17

Subcontracting. This is also referred to as contract manufacturing. It is very common in some industries.

Question 18

Vary inventory levels. Inventory may be produced before a peak season when excess capacity may be limited.

Question 19

Level plans. This method uses a constant workforce and produces similar quantities each time period. It uses inventories and backorders to absorb demand peaks and decline.

Question 20

Chase plans. This method minimizes finished goods inventories by adjusting production and staffing to keep pace with demand fluctuations.

Question 21

Mixed strategies. This method is a combination of level and chase plans.

Question 22

Make-to-stock (MTS). Production for finished goods is based on a forecast using predetermined inventory targets.

Question 23

Make-to-order (MTO). Production is based specifically on particular customer orders.

Question 24

Assemble-to-order (ATO). Products are combined from components after the receipt of a customer order.

Question 25

Engineer-to-order (ETO). Production uses customer specifications that require unique engineering design, significant customization, or newly purchased materials.

Question 26

Forward scheduling. Plans tasks from the date resources become available to determine the shipping date or the due date of finished goods or services.

Question 27

Backward scheduling. Plans tasks from the due date or required date of finished goods or services, to determine the manufacturing start date or any changes in capacity required.

Question 28

First come, first served (FCFS). Jobs run in the order they are received. Perhaps the fairest, although not always most efficient, way of scheduling.

Question 29

Earliest due date (EDD). Work on the jobs due the soonest.

Question 30

Shortest processing time (SPT). Shortest jobs run earlier to make sure that they are completed on time. Larger jobs will possibly be late as a result.

Question 31

Longest processing time (LPT). Start with the jobs that take the longest to get them done on time.

Question 32

Critical ratio (CR). Jobs are processed according to the smallest ratio of time remaining based on due date.

Question 33

Waiting line system is also known as a queuing system. It is used to estimate the number of poten tial customers that can fit into the process of a service system at any given time.

Question 34

Optimization also occurs in other service industries by balancing the number of lines or servers, customer arrival times, and waiting line rules or how people are being serviced.

Question 35

Single line system. It typically works on a first-come, first-served basis.

Question 36

Multiple line system. It often provides different transaction types by customer type.

Question 37

Balking. It occurs when a customer chooses not to enter the waiting line.

Question 38

Reneging. It occurs whena customer enters the line, but leaves.

Question 39

Jockeying. It occurs when a customer changes from one line to another.

Question 40

The average number of arrivals per time period

Answer 40

Lamda

Question 41

The average number of customers served per time period

Answer 41

Mu