MGMT 339 Final Exam Questions and Answers Already Passed Latest Update 2025-2026
Facilities planning:
A. Refers to medium-range capacity decisions
B. Has no impact on other capacity decisions
C. Refers to determining long-term capacity requirements
D. Requires capacity planning for one year or less - Answers C
Which of the following statements regarding capacity is NOT correct?
A. Capacity can be measured in several units such as hours of output, the number of units
produced, the number of customers served, etc.
B. Capacity requirement is measured in terms of long-term, intermediate period and
short-term.
C. Capacity is the maximum output that could be produced over a specific period of time.
D. All of the above are correct. - Answers D
Aggregate planning:
A. is also called production planning.
B. is concerned with meeting the demand for the intermediate period at a minimum cost
C. considers using overtime, subcontracting, and inventory levels
D. All of the above. - Answers D
Which of the following is/are used to influence demand in aggregate planning? (Select the best
answer)
A. Pricing, inventory, and advertising
B. Reservations, pricing, and advertising
,C. Subcontracting, advertising, and pricing
D. Inventory, reservations, and pricing - Answers B
In developing aggregate production plan, subcontracting and hiring approaches are used to
influence _____________.
A. demand
B. supply
C. quality conformance
D. Cannot be determined. - Answers B
A major difference between facilities planning and scheduling is that:
A. Facilities planning refers to a long-range capacity plan and scheduling refers to a short-range
capacity plan.
B. Facilities planning is concerned with allocating available resources and scheduling with the
acquisition of resources.
C. Facilities planning refers to medium-range resource requirement and scheduling refers to
long-range capacity requirement.
D. None of the above. - Answers A
Suppose the cost of not having adequate capacity is very high. What type of capacity cushion
strategy is a company likely to use in this situation?
A. Small cushion
B. Large cushion
C. Moderate cushion
D. None of the above - Answers B
The percentage of actual output to available capacity is called:
, A. Small capacity cushion
B. Capacity utilization
C. Peak capacity
D. Nominal capacity
E. Only (A) and (C) above. - Answers B
Which of the following statement(s) is NOT correct about aggregate planning?
A. Aggregate planning is appropriate for planning capacity both in manufacturing and service
operations.
B. Aggregate planning seeks to meet the required demand at the minimum possible cost.
C. Aggregate planning seeks to determine overall long-term output requirement.
D. Both (a) and (b) above - Answers C
In using a level strategy of aggregate planning demand is met by:
A. Changing the production level to match demand as needed.
B. Producing at a constant rate plus using overtime or subcontracting if needed.
C. Producing at a constant rate and using inventory to absorb fluctuations in demand.
D. Only (A) and (B)
E. Only (B) and (C) - Answers C
Aggregate planning costs include all of the following except:
A. Hiring and layoff costs
B. Overtime and under-time costs
C. Regular labor costs
D. Logistics costs
E. Subcontracting costs - Answers D
Facilities planning:
A. Refers to medium-range capacity decisions
B. Has no impact on other capacity decisions
C. Refers to determining long-term capacity requirements
D. Requires capacity planning for one year or less - Answers C
Which of the following statements regarding capacity is NOT correct?
A. Capacity can be measured in several units such as hours of output, the number of units
produced, the number of customers served, etc.
B. Capacity requirement is measured in terms of long-term, intermediate period and
short-term.
C. Capacity is the maximum output that could be produced over a specific period of time.
D. All of the above are correct. - Answers D
Aggregate planning:
A. is also called production planning.
B. is concerned with meeting the demand for the intermediate period at a minimum cost
C. considers using overtime, subcontracting, and inventory levels
D. All of the above. - Answers D
Which of the following is/are used to influence demand in aggregate planning? (Select the best
answer)
A. Pricing, inventory, and advertising
B. Reservations, pricing, and advertising
,C. Subcontracting, advertising, and pricing
D. Inventory, reservations, and pricing - Answers B
In developing aggregate production plan, subcontracting and hiring approaches are used to
influence _____________.
A. demand
B. supply
C. quality conformance
D. Cannot be determined. - Answers B
A major difference between facilities planning and scheduling is that:
A. Facilities planning refers to a long-range capacity plan and scheduling refers to a short-range
capacity plan.
B. Facilities planning is concerned with allocating available resources and scheduling with the
acquisition of resources.
C. Facilities planning refers to medium-range resource requirement and scheduling refers to
long-range capacity requirement.
D. None of the above. - Answers A
Suppose the cost of not having adequate capacity is very high. What type of capacity cushion
strategy is a company likely to use in this situation?
A. Small cushion
B. Large cushion
C. Moderate cushion
D. None of the above - Answers B
The percentage of actual output to available capacity is called:
, A. Small capacity cushion
B. Capacity utilization
C. Peak capacity
D. Nominal capacity
E. Only (A) and (C) above. - Answers B
Which of the following statement(s) is NOT correct about aggregate planning?
A. Aggregate planning is appropriate for planning capacity both in manufacturing and service
operations.
B. Aggregate planning seeks to meet the required demand at the minimum possible cost.
C. Aggregate planning seeks to determine overall long-term output requirement.
D. Both (a) and (b) above - Answers C
In using a level strategy of aggregate planning demand is met by:
A. Changing the production level to match demand as needed.
B. Producing at a constant rate plus using overtime or subcontracting if needed.
C. Producing at a constant rate and using inventory to absorb fluctuations in demand.
D. Only (A) and (B)
E. Only (B) and (C) - Answers C
Aggregate planning costs include all of the following except:
A. Hiring and layoff costs
B. Overtime and under-time costs
C. Regular labor costs
D. Logistics costs
E. Subcontracting costs - Answers D
