P370 Self-Check Post-Midterm Questions ||
100% Solved
Converting quarterly and annual business plans into broad output and labor
requirements for the intermediate term is known as: - Correct Answer Aggregate
planning
Which of the following is NOT a method used in aggregate planning to cope with
fluctuations in demand? - Correct Answer Construction of a new plant and/or finished
goods warehouse
Which aggregate planning strategy typically results in greater inventory carrying costs? -
Correct Answer 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? - Correct Answer 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. - Correct Answer 160
A pure level strategy for aggregate production planning: - Correct Answer Maintains a
stable workforce working at a constant output rate.
Which of the following circumstances would provide an incentive for employing a level
(vs. chase) plan? - Correct Answer The production process requires highly trained
labor.
Mole Mfg. has asked you to develop a chase plan for the production of its earth moving
equipment. Below is the beginning inventory, monthly demand, and relevant work force
information. Determine the total hire/fire costs and the number of workers employed at
the end of October. Note: The ending inventory for October should be 0. July Beginning
Inventory 1200: Demand is July 3300; Aug 3000; Sept 2550; Oct 2400. Hiring costs $50
per worker; firing costs $100 per worker; production rate 15 units per month per worker;
starting workforce 200 workers - Correct Answer $13,000 and 160 workers
The BBC Company is forecasting demand to fluctuate over the next four periods. If the
beginning inventory level is 120 units and the company wants a pure level output plan,
what level of production is required to avoid back orders during any period and to keep
, ending inventory for period 4 at a minimum? The forecast is: Period 1-1900; Period 2-
1930; Period 3-2260; Period 4-910. - Correct Answer 1990
Which of the following costs are NOT considered in developing an aggregate production
plan? - Correct Answer Depreciation costs
Central Hydraulic Supply
The Central Hydraulic Supply Company is a distributor of hydraulic supplies in the
Midwest. Central handles standard fittings, tubing, and similar items. Generally Central
carries an entire product line for each manufacturer it represents providing local stock
for rapid delivery to customers. The parts that Central stocks are mainly used in the
maintenance of large construction equipment. The company operates 52 weeks per
year.
The company reviewed the cost of preparing and processing a requisition, preparing a
purchase order, and making necessary record changes. This was estimated to be $50
per order.
One part that Central stocks is a small hydraulic fitting. Central sells about 20,500 of
these fittings per year (the fitting is purchases for $14 and sells for $19). The
manufacturer from whom Central buys the fitting does not offer any quantity discount.
The manufacturer is located about 1,50 - Correct Answer 885.7
How many orders will there be per year at the FOQ? - Correct Answer 23.96
At Q, what is TAHC? - Correct Answer 1197.98
At Q, what is TAC? - Correct Answer 289395.83
Suppose that the supplier of the fittings only has the capacity to deliver the fittings at the
rate of 500 per week. What is the new optimum order quantity (Q)? - Correct Answer
1860
Which of the following is not a type of inventory? - Correct Answer Reorder point stock
In a saw tooth diagram, the peak of each inventory cycle represents? - Correct Answer
Q
A certain product costs $200 to order. The cost per unit is $25 and the cost to carry one
unit in inventory for 1 year is 20% of the value of the product. Monthly demand is 1,000
units. The company operates 5 days a week, 4 weeks per month. What is the FOQ? -
Correct Answer 980
A certain product costs $200 to order. The cost per unit is $25 and the cost to carry one
unit in inventory for 1 year is 20% of the value of the product. Monthly demand is 1,000
units. The company operates 5 days a week, 4 weeks per month.
100% Solved
Converting quarterly and annual business plans into broad output and labor
requirements for the intermediate term is known as: - Correct Answer Aggregate
planning
Which of the following is NOT a method used in aggregate planning to cope with
fluctuations in demand? - Correct Answer Construction of a new plant and/or finished
goods warehouse
Which aggregate planning strategy typically results in greater inventory carrying costs? -
Correct Answer 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? - Correct Answer 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. - Correct Answer 160
A pure level strategy for aggregate production planning: - Correct Answer Maintains a
stable workforce working at a constant output rate.
Which of the following circumstances would provide an incentive for employing a level
(vs. chase) plan? - Correct Answer The production process requires highly trained
labor.
Mole Mfg. has asked you to develop a chase plan for the production of its earth moving
equipment. Below is the beginning inventory, monthly demand, and relevant work force
information. Determine the total hire/fire costs and the number of workers employed at
the end of October. Note: The ending inventory for October should be 0. July Beginning
Inventory 1200: Demand is July 3300; Aug 3000; Sept 2550; Oct 2400. Hiring costs $50
per worker; firing costs $100 per worker; production rate 15 units per month per worker;
starting workforce 200 workers - Correct Answer $13,000 and 160 workers
The BBC Company is forecasting demand to fluctuate over the next four periods. If the
beginning inventory level is 120 units and the company wants a pure level output plan,
what level of production is required to avoid back orders during any period and to keep
, ending inventory for period 4 at a minimum? The forecast is: Period 1-1900; Period 2-
1930; Period 3-2260; Period 4-910. - Correct Answer 1990
Which of the following costs are NOT considered in developing an aggregate production
plan? - Correct Answer Depreciation costs
Central Hydraulic Supply
The Central Hydraulic Supply Company is a distributor of hydraulic supplies in the
Midwest. Central handles standard fittings, tubing, and similar items. Generally Central
carries an entire product line for each manufacturer it represents providing local stock
for rapid delivery to customers. The parts that Central stocks are mainly used in the
maintenance of large construction equipment. The company operates 52 weeks per
year.
The company reviewed the cost of preparing and processing a requisition, preparing a
purchase order, and making necessary record changes. This was estimated to be $50
per order.
One part that Central stocks is a small hydraulic fitting. Central sells about 20,500 of
these fittings per year (the fitting is purchases for $14 and sells for $19). The
manufacturer from whom Central buys the fitting does not offer any quantity discount.
The manufacturer is located about 1,50 - Correct Answer 885.7
How many orders will there be per year at the FOQ? - Correct Answer 23.96
At Q, what is TAHC? - Correct Answer 1197.98
At Q, what is TAC? - Correct Answer 289395.83
Suppose that the supplier of the fittings only has the capacity to deliver the fittings at the
rate of 500 per week. What is the new optimum order quantity (Q)? - Correct Answer
1860
Which of the following is not a type of inventory? - Correct Answer Reorder point stock
In a saw tooth diagram, the peak of each inventory cycle represents? - Correct Answer
Q
A certain product costs $200 to order. The cost per unit is $25 and the cost to carry one
unit in inventory for 1 year is 20% of the value of the product. Monthly demand is 1,000
units. The company operates 5 days a week, 4 weeks per month. What is the FOQ? -
Correct Answer 980
A certain product costs $200 to order. The cost per unit is $25 and the cost to carry one
unit in inventory for 1 year is 20% of the value of the product. Monthly demand is 1,000
units. The company operates 5 days a week, 4 weeks per month.
