OMIS 430 test 3

Which of the following best describes aggregate planning?

an attempt to respond to predicted demand within the constraints set by product, process, and location decisions

Aggregate planning is capacity planning for

the intermediate range.

Aggregate planners attempt to balance

capacity and demand.

Aggregate planners seek to match supply and demand

at minimum overall cost.

In practice, the more commonly used techniques for aggregate planning are

informal trial-and-error techniques.

The main disadvantage(s) of informal techniques used for aggregate planning is(are)

they may not result in the best plan.

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is

available-to-promise inventory.

Contract workers are also known by this name

independent contractors, or "gig workers"

This aggregate planning technique is known for being intuitively appealing.

spreadsheet

This aggregate planning technique is known for being computerized, although some assumptions may not be valid.

linear programming

This aggregate planning technique is known for being examined under a variety of conditions.

simulation

In doing aggregate planning for a firm producing paint, the aggregate planners would most likely deal with

just gallons of paint, without concern for the different colors and sizes.

In using the chase strategy, variations in demand could be met by

varying output during regular time by changing employment levels.

The direct result of disaggregating the aggregate plan is the

master schedule.

A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected on-hand inventory at the end of period 2?

1

A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What quantity is available for commitment to new customers in either of the first two periods?

4

At XYZ Corp., the master schedule reflects the fact that 50 percent of its output is product version A, 30 percent is version B, and 20 percent is version C. Suppose that over the coming year planned aggregate production is for 10,400 units. Once the production plan is disaggregated evenly throughout the year, what will the weekly production for version A be (assume 52 weeks per year)?

100

Which of the following steps is necessary to ensure that a master schedule is valid?

rough-cut capacity planning

The following are important considerations when developing a strategy to meet uneven demand

flexibility, costs, and company policy

A stock or store of goods is called a(n)

inventory

Which of the following is typically the largest of all inventory costs?

purchase cost

In an A-B-C system, the typical percentage of the number of items in inventory that is classified as A items is about

10

In the A-B-C classification system, items which account for about 15 percent of the annual dollar value, but which account for a majority of the inventory items, would be classified as

C items

In the A-B-C classification system, items which account for about 60 percent of the annual dollar value, but only about 10 to 15 percent of the items in inventory, would be classified as

A items

The purpose of cycle counting is to

reduce discrepancies between inventory records and actual quantities.

A risk avoider would want ______ safety stock.

more

If no variations in demand or lead time exist, the ROP will equal

expected usage during lead time.

If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is

700 units

Which of these products would be most apt to involve the use of a single-period model?

fresh fish

An operations strategy for inventory management should work toward

decreasing lot sizes

Which of the following are not types of inventory?

customer orders

_____is that the average amount of inventory in a system is equal to the product of the average demand rate and the average time a unit is in the system.

Little's Law

The perpetual inventory system is also known as what type of review system?

continuous

Which system requires a physical count of items that are in inventory made at periodic intervals?

periodic

Which system keeps track of the items removed from inventory in order to provide real-time levels?

perpetual

The EOQ model is most relevant for which one of the following?

determining fixed order quantities

In the basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per month, EOQ is

Multiple Choice

12

The need for safety stocks can be reduced by an operations strategy which

decreases lead time variability.

With an A-B-C system, an item that had a high demand but a low annual dollar volume would probably be classified as

C

Similar to that in manufacturing, the service scheduling hierarchy begins with __________ and ends with _________.

aggregate planning; detailed daily scheduling

In theory of constraints scheduling, the __________ refers to the schedule and the __________ refers to inventory used to ensure that the bottleneck is never idle.

drum; buffer

Scheduling pertains to

timing the use of specific resources

Which of the following is the last step in the capacity/scheduling chain?

scheduling

Which of the following is not usually a characteristic of successful high-volume systems?

customized output

A work center can be a:(I) machine.(II) group of machines.(III) department.(IV) a part used to produce a product.

I, II, and III only

The priority rule which will sequence jobs in the order they are received is

FCFS

A scheduling technique used to achieve an optimum matching of tasks and resources is

the assignment method.

Scheduled due dates are the result of

promises to customers.

MRP processing.

managerial decisions.

all of the choices.Correct

our competitor's promises.

all of the choices

A scheduling rule used for sequencing jobs through two work centers such that makespan is minimized is

Johnson's rule

Scheduling in service systems often takes the form of:(I) appointment systems.(II) reservation systems.(III) makespan systems.

I and II only

Scheduling in service systems may involve scheduling:(I) the workforce.(II) the equipment.(III) customers.

I, II, and III

Job X, which has a duration of four days, is due by the close of business on Friday, December 23. Without looking at the work already scheduled on X's required resource, the scheduler schedules X to be begun on the morning of Tuesday, December 20. This is an example of

backward scheduling.

Job X, which has a duration of four days, is due by the close of business on Friday, December 23. Without looking at the work already at X's required resource, the scheduler schedules X to be begun immediately and assumes that X will be done four days from now. This is an example of

forward scheduling.

Job X arrived at work center Q at noon. At 2 p.m. that same day X was begun. X left work center Q at 3:15 p.m. that same day. X's flow time, in minutes, was

195

All of the following are examples of decisions that must be made before scheduling decisions, except

developing schedules.

Which costs depend on the order in which the jobs are processed?

setup

_____ charts are often the preferred charts related to loading and scheduling activities.

Gantt

_____ is a technique that managers can utilize in order to minimize the makespan for a group of jobs to be processed on two machines or at two work centers.

Johnson's rule

The following table contains information about five jobs waiting to be processed at work center number three.

Job Processing Time (hrs) Hours Until Duea 14 15 b 10 20 c 18 18 d 2 16 e 4 21

The sequence that would result using the SPT rule is

d-e-b-a-c.