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Operations Management 101 Practice Test: Aggregate Scheduling
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Aggregate scheduling is a part of aggregate planning, which is the process of creating an approximate schedule for how an organization will operate over a period of time, typically 3–18 months. Aggregate planning covers all production activities at a facility, not just individual production runs or the manufacture of individual products. The goal of aggregate planning is to help a business fulfill forecasted demand at minimal cost.  Aggregate planning helps management decide when and how much to procure materials and other resources. It also helps determine: Outsourcing, Subcontracting,... Show more
Operations Management 101 Practice Test: Aggregate Scheduling
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25 Questions

1. Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time.
2. Under which of the following do planning tasks associated with production planning and budgeting, as well as setting employment, inventory, and subcontracting levels, typically fall?
3. Which of the following statements about aggregate planning is TRUE?
4. A firm uses the pure chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 800, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. Which of the following tactics would be most representative of following a chase strategy?
5. What is the typical time horizon for aggregate planning?
6. Which of the following is the term used for intermediate-range capacity planning with a time horizon of three to eighteen months?
7. Disaggregation:
8. Advertising and promotion are methods of manipulating product or service supply in aggregate planning.
9. One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.
10. Which of the following is NOT one of the successful techniques for controlling the cost of labor in services?
11. Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon.
12. Aggregate planning in manufacturing ties organizational strategic goals to a production plan.
13. Which of the following aggregate planning options is NOT associated with manipulation of product or service demand?
14. Industries in which revenue management techniques are easiest to apply are those where:
15. The use of part-time workers as an aggregate planning option may be less costly than using full-time workers, but it may also reduce quality levels.
16. A firm practices a pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900, 700, 1000, and 1000. Hiring cost is $20 per unit, and layoff cost is $5 per unit. Over the next year, what will be the sum of hiring and layoff costs?
17. Which of these aggregate planning strategies is a capacity option?
18. Aggregate planning for service firms that provide intangible output deals mainly with:
19. The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.
20. Which of the following is NOT an input to S&OP?
21. Graphical techniques are easy to understand and use, but are not well-suited for generating optimal strategies.
22. Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.
23. Which of the following aggregate planning strategies is a capacity option?
24. Under which of the following do planning tasks associated with job assignments, ordering, job scheduling, and dispatching typically fall?
25. A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period), it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that:

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