correctly answered 2022
Demand-Based Options - correct answer includes two reactive options and one
proactive option
Reactive option - correct answer the operations department uses inventories and back
orders to react to demand fluctuations
Proactive option - correct answer marketing tries to shift the demand patterns to
minimize demand fluctuations
Capacity-Based Options - correct answer changes output capacity to meet demand
finished goods inventory - correct answer used to absorb demand fluctuations; allows
your company to develop a stable work environment
Shifting demand - correct answer proactive marketing approach to leveling demand in
which your company tries to change consumer buying patterns by offering incentives
level aggregate plan - correct answer maintains a constant workforce and produces the
same amount of product in each time period of the plan
The level plan is often used with make-to-stock products such as... - correct answer
stereos, kitchen appliances, and hardware
To calculate the number of employees needed... - correct answer divide the number of
units needed per month by the monthly output per employee
chase aggregate plan - correct answer produces exactly what is needed to satisfy
demand during each period
This may be a better option when a company produces make-to-order products such as
custom cabinets, special-purpose equipment, one-of-a-kind items, or highly perishable
products - correct answer chase aggregate plan
hybrid aggregate plan - correct answer uses a combination of options. With this plan,
your company might maintain a stable workforce supplemented by an inventory buildup
and some overtime production to meet demand.
Sales and operations planning - correct answer integrates the medium-range functional
plans developed by marketing, operations, engineering, and finance
, aggregate plan - correct answer Includes the budgeted levels of finished products,
inventory, backlogs, workforce size, and aggregate production rate needed to support
the marketing plan
Also called production plan - correct answer Aggregate plan
Supports marketing plan - correct answer Aggregate plan
master production schedule - correct answer The anticipated production schedule for
the company expressed in specific configurations, quantities, and dates
point of departure - correct answer the percentage of normal capacity your company is
currently operating at
Duration of the change - correct answer the length of time you expect to need the
different level of capacity
Steps to Develop an Aggregate Plan - correct answer Step 1 Identify the type of
aggregate plan
Step 2
Based on the aggregate plan, determine the aggregate production rate.
Step 3
Calculate the size of the workforce.
Step 4
Test the aggregate plan.
Step 5
Evaluate the plan's performance
Psychological criteria - correct answer a subjective definition that focuses on the
judgmental evaluation of what constitutes product or service quality
support services - correct answer how the quality of a product or service is judged
Value for price paid - correct answer a definition of quality that consumers often use for
product or service usefulness
Conformance to specifications - correct answer measures how well the product or
service meets the targets and tolerances determined by its designers
Fitness for use - correct answer focuses on how well the product performs its intended
function or use
continuous improvement - correct answer A philosophy of never-ending improvement.
benchmarking - correct answer Studying the business practices of other companies for
purposes of comparison.