OPSM QUESTIONS AND ANSWERS
Which aggregate planning strategy is best used when inventory holding costs are low in
relation to other capacity considerations - Answers -Level
Which aggregate planning strategy uses utilization (labor overtime, multiple work shifts)
as the main lever to match supply with demand - Answers -Time flexibility
Which aggregate plan data component is the hardest to get good data about - Answers
-Demand forecast each period
If you are attempting to use price as a lever to manage demand and optimize your
aggregate plan, when should you consider a promotional strategy in a low demand
period - Answers -When the product or service generates low profit margins
What is the capacity of this system? - Answers -Add the smallest number from each
row in the system.
If the throughput for each station could be increased by 1 unit per hour, which station
should managers focus their attention to increase overall throughput? - Answers -Add 1
to the least outputting station in each row, it will give you a number higher than the last
station, 10, it will be more than station 10 by 2, so you would increase station 10 by 1 to
increase flow of goods from that station.
Utilization - Answers -Output/design capacity
Efficiency - Answers -output/effective capacity
Units of capacity needed (how many of each machine is needed to handle annual
demand) - Answers -processing time needed / processing time capacity per unit
The master production schedule states which end items are to be produced, in addition
to when and how many T/F - Answers -True
End inventory? - Answers -= begin inventory - demand + Production
End inventory example:
Inventory for firm ABC
Inv at end of april = 200
Demand during April = 50
Production during April = 100
Inventory at end of march?
Beginning inventory for april is equal to the end inventory of march - Answers -x - 50 +
100 = 200
X - 50 = 200 - 100
Which aggregate planning strategy is best used when inventory holding costs are low in
relation to other capacity considerations - Answers -Level
Which aggregate planning strategy uses utilization (labor overtime, multiple work shifts)
as the main lever to match supply with demand - Answers -Time flexibility
Which aggregate plan data component is the hardest to get good data about - Answers
-Demand forecast each period
If you are attempting to use price as a lever to manage demand and optimize your
aggregate plan, when should you consider a promotional strategy in a low demand
period - Answers -When the product or service generates low profit margins
What is the capacity of this system? - Answers -Add the smallest number from each
row in the system.
If the throughput for each station could be increased by 1 unit per hour, which station
should managers focus their attention to increase overall throughput? - Answers -Add 1
to the least outputting station in each row, it will give you a number higher than the last
station, 10, it will be more than station 10 by 2, so you would increase station 10 by 1 to
increase flow of goods from that station.
Utilization - Answers -Output/design capacity
Efficiency - Answers -output/effective capacity
Units of capacity needed (how many of each machine is needed to handle annual
demand) - Answers -processing time needed / processing time capacity per unit
The master production schedule states which end items are to be produced, in addition
to when and how many T/F - Answers -True
End inventory? - Answers -= begin inventory - demand + Production
End inventory example:
Inventory for firm ABC
Inv at end of april = 200
Demand during April = 50
Production during April = 100
Inventory at end of march?
Beginning inventory for april is equal to the end inventory of march - Answers -x - 50 +
100 = 200
X - 50 = 200 - 100
