MGMT 3320 FINAL EXAM REVIEW
aggregate planning - Answers - intermediate range capacity planning, usually covering
2 to 12 months
goal of aggregate planning - Answers - to achieve a production plan that will effectively
utilize the organization's resources to satisfy expected demand
sales and operations planning - Answers - intermediate-range decisions to balance
supply and demand, integrating financial and operations planning
long-term capacity decisions - Answers - includes product and service selection, facility
size and location, equipment decisions, and layout of facilities
establish the capacity constraints that intermediate decisions live in
intermediate-term capacity decisions - Answers - relate to general levels of
employment, output, and inventories
establish the boundaries that short range capacity decisions are made in
short-term capacity decisions - Answers - consist of deciding the best way to achieve
desired results within the constraints from long-term and intermediate-term decisions
business planning key objective - Answers - coordinate the intermediate plans of
carious organizational functions, such as marketing, operations, and finance
aggregation - Answers - focuses on a group of similar product or services, or sometimes
an entire product or service line
why organizations need aggregate planning - Answers - it takes time to implement plans
it is not possible to predict with any degree of accuracy the timing and volume of
demand for individual items
strategies to counter variations - Answers - maintain a certain amount of excess
capacity to handle increases in demand
maintain a degree of flexibility in dealing with changes
wait as long as possible before committing to a certain level of supply capabilities
aggregate planning plan - Answers - forecast of aggregate demand for the intermediate
range
general plan to meet demand requirements by setting output, employment, and finished
goods inventory levels or service capabilities
consider other plans and examine them in terms of feasibility and cost
, rolling planning horizon - Answers - A planning approach in which an organization
updates its sales and operations plan regularly, such as on a monthly or quarterly basis.
inputs to aggregate planning - Answers - available resources
forecast of expected demand
policies regarding changes in employment levels
subcontracting
overtime
inventory levels/changes
back orders
costs
total cost of a plan
projected levels of inventory, output, employment, subcontracting, and backordering
demand aggregate planning strategy - Answers - alter demand so it matches capacity
capacity aggregate planning strategy - Answers - altering capacity so it matches
demand
mixed strategies - Answers - include demand and capacity strategies
demand options - Answers - pricing, promotion, back orders, new demand
supply options - Answers - Hire and layoff workers
Overtime/slack time
Part-time workers
Inventories
Subcontracting
outsourcing - Answers - contracting with another organization to supply some portion of
the goods and services on a regular basis
strategies for meeting uneven demand - Answers - maintain a level workforce
maintain a steady output rate
match demand period by period
use a combination of decision variables
level capacity strategy - Answers - maintaining a steady rate of regular-time output while
meeting variations in demand by a combination of options
works best when inventory carrying costs and backlog costs are relatively low
advantage: stable output rates and workforce levels
disadvantages: greater inventory costs, increased overtime and idle time, resource
utilizations that vary over time
chase demand strategy - Answers - matching capacity to demand; the planned output
for a period is set at the expected demand for that period.
aggregate planning - Answers - intermediate range capacity planning, usually covering
2 to 12 months
goal of aggregate planning - Answers - to achieve a production plan that will effectively
utilize the organization's resources to satisfy expected demand
sales and operations planning - Answers - intermediate-range decisions to balance
supply and demand, integrating financial and operations planning
long-term capacity decisions - Answers - includes product and service selection, facility
size and location, equipment decisions, and layout of facilities
establish the capacity constraints that intermediate decisions live in
intermediate-term capacity decisions - Answers - relate to general levels of
employment, output, and inventories
establish the boundaries that short range capacity decisions are made in
short-term capacity decisions - Answers - consist of deciding the best way to achieve
desired results within the constraints from long-term and intermediate-term decisions
business planning key objective - Answers - coordinate the intermediate plans of
carious organizational functions, such as marketing, operations, and finance
aggregation - Answers - focuses on a group of similar product or services, or sometimes
an entire product or service line
why organizations need aggregate planning - Answers - it takes time to implement plans
it is not possible to predict with any degree of accuracy the timing and volume of
demand for individual items
strategies to counter variations - Answers - maintain a certain amount of excess
capacity to handle increases in demand
maintain a degree of flexibility in dealing with changes
wait as long as possible before committing to a certain level of supply capabilities
aggregate planning plan - Answers - forecast of aggregate demand for the intermediate
range
general plan to meet demand requirements by setting output, employment, and finished
goods inventory levels or service capabilities
consider other plans and examine them in terms of feasibility and cost
, rolling planning horizon - Answers - A planning approach in which an organization
updates its sales and operations plan regularly, such as on a monthly or quarterly basis.
inputs to aggregate planning - Answers - available resources
forecast of expected demand
policies regarding changes in employment levels
subcontracting
overtime
inventory levels/changes
back orders
costs
total cost of a plan
projected levels of inventory, output, employment, subcontracting, and backordering
demand aggregate planning strategy - Answers - alter demand so it matches capacity
capacity aggregate planning strategy - Answers - altering capacity so it matches
demand
mixed strategies - Answers - include demand and capacity strategies
demand options - Answers - pricing, promotion, back orders, new demand
supply options - Answers - Hire and layoff workers
Overtime/slack time
Part-time workers
Inventories
Subcontracting
outsourcing - Answers - contracting with another organization to supply some portion of
the goods and services on a regular basis
strategies for meeting uneven demand - Answers - maintain a level workforce
maintain a steady output rate
match demand period by period
use a combination of decision variables
level capacity strategy - Answers - maintaining a steady rate of regular-time output while
meeting variations in demand by a combination of options
works best when inventory carrying costs and backlog costs are relatively low
advantage: stable output rates and workforce levels
disadvantages: greater inventory costs, increased overtime and idle time, resource
utilizations that vary over time
chase demand strategy - Answers - matching capacity to demand; the planned output
for a period is set at the expected demand for that period.
