Multiple Choice #8

Question 1

The process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon is

A) aggregate planning.
B) detail planning.
C) inventory planning.
D) sales planning.

Answer 1

A) aggregate planning.

Question 2

The goal of aggregate planning is to

A) dissatisfy customers in a way that maximizes profit.
B) dissatisfy customers in a way that minimizes profit.
C) satisfy demand in a way that maximizes profit.
D) satisfy demand in a way that minimizes profit.

Answer 2

C) satisfy demand in a way that maximizes profit.

Question 3

Aggregate planning solves problems involving

A) aggregate decisions and stock keeping unit (SKU) level decisions.
B) aggregate decisions or stock keeping unit (SKU) level decisions.
C) aggregate decisions rather than stock keeping unit (SKU) level decisions.
D) stock keeping unit (SKU) level decisions rather than aggregate decisions.

Answer 3

C) aggregate decisions rather than stock keeping unit (SKU) level decisions.

Question 4

Aggregate planning, to be effective, requires inputs from

A) all customers.
B) all departments.
C) all suppliers.
D) throughout the supply chain.

Answer 4

D) throughout the supply chain.

Question 5

Much of aggregate planning has traditionally been focused

A) on short-term production scheduling.
B) on customer relationship management.
C) within an enterprise.
D) beyond enterprise boundaries.

Answer 5

C) within an enterprise.

Question 6

The operational parameter concerned with the number of units completed per unit time (such as per week or per month) is

A) production rate. 
B) workforce. 
C) overtime. 
D) backlog. 
E) inventory on hand.

Answer 6

A) production rate.

Question 7

The operational parameter concerned with the number of workers/units of capacity needed for production is

A) production rate. 
B) workforce. 
C) overtime. 
D) backlog. 
E) inventory on hand.

Answer 7

B) workforce.

Question 8

The operational parameter concerned with the amount of overtime production planned is

A) production rate. 
B) workforce. 
C) overtime. 
D) backlog. 
E) inventory on hand.

Answer 8

C) overtime.

Question 9

The operational parameter concerned with demand not satisfied in the period in which it arises, but carried over to future periods is

A) production rate. 
B) workforce. 
C) overtime. 
D) backlog. 
E) inventory on hand.

Answer 9

D) backlog.

Question 10

The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is

A) production rate. 
B) workforce. 
C) overtime. 
D) backlog. 
E) inventory on hand.

Answer 10

E) inventory on hand.