P370 Final Self-Check Questions And Complete
Solutions 2024/25
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.
Solutions 2024/25
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.
