P370 Final Self-Check Questions With
100% Correct Answers.
Converting quarterly and annual business plans into broad output and labor requirements for the
intermediate term is known as:
Aggregate Planning.
Which of the following is NOT a method used in aggregate planning to cope with fluctuations in
demand?
Construction of a new plant and/or finished goods warehouse.
Which aggregate planning strategy typically results in greater inventory carrying costs?
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.
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.
Which of the following circumstances would provide an incentive for employing a level (vs. chase)
plan?
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
$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.
1990.
100% Correct Answers.
Converting quarterly and annual business plans into broad output and labor requirements for the
intermediate term is known as:
Aggregate Planning.
Which of the following is NOT a method used in aggregate planning to cope with fluctuations in
demand?
Construction of a new plant and/or finished goods warehouse.
Which aggregate planning strategy typically results in greater inventory carrying costs?
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.
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.
Which of the following circumstances would provide an incentive for employing a level (vs. chase)
plan?
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
$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.
1990.
