P370 Final Exam!!

P370 FINAL EXAM!! Converting quarterly and annual business plans into broad output and labor requirements for the intermediate term is known as: Master production scheduling. Aggregate planning Master production scheduling. Rough-cut capacity planning. Materials requirements planning. Capacity requirements planning. Aggregate planning Which of the following is NOT a method used in aggregate planning to cope with fluctuations in demand? Backordering demand in peak periods Building inventory in advance of peak periods Hiring additional workers in peak periods Construction of a new plant and/or finished goods warehouse All of the above are methods used to cope with fluctuating demand in Construction of a new plant and/or finished goods warehouse Which aggregate planning strategy typically results in greater inventory carrying costs? Level strategy. Chase strategy. Subcontracting strategy. Material requirements production strategy It depends on other factors Level strategy. Suppose a company is using pure chase strategy for its aggregate production planning. Which of the following policies would a manager use to deal with (or hedge against) the fluctuation in demand? Hire additional workers when demand increases and outplace them when demand decreases Stock up excessive inventory during the periods of low demand. Purchase the shortages from subcontractors. Allow the employees to work overtime when the demand is low. All of the above Hire additional workers when demand increases and outplace them when demand decreases The Bloomington Bicycle Bearing company wishes to use a level output plan to plan for the rest of the year. Here is the forecasted demand for all bearing types: Month Demand May 800 Jun 650 July 720 August 690 Sept 530 Oct 610 Nov 630 Dec 610 If the beginning inventory is 300 units and the desired ending inventory at the end of December is 500 units, how many units will be in inventory at the end of August? Assume that backorders are allowed. 160 A pure level strategy for aggregate production planning: Maintains a stable workforce working at a constant output rate. Varies the output by changing the number of hours worked through flexible work schedules or overtime Matches the production rate to monthly demand by hiring and laying off Uses a part-time workforce when the demand exceeds the production rate. Never uses inventory to buffer against the changes in demand.