Question

1) Which of the following is not a technique used for aggregate planning?

Multiple Choice

A) Linear programming

B) Transportation model

C) Trial-and-error worksheets or graphs

D) Double smoothing

2) Which statement concerning aggregate planning for services is accurate?

A) Number of FTEs (full time equivalents) is often used to plan labour intensive services

B) Services occur when they are rendered, so they can't be inventoried

C) Matching capacity and demand each period is more important than it is for manufactured products

D) All the statements are accurate

3) Sales and operations plans usually deal with aggregated demand for products and services.

Multiple Choice

A) True

B) False

4) The following input is provided for developing an aggregate production plan for April through December, 2011;

Inventory at the end of March 2011 = 0 units Forecast demand for April, 2011 = 200 units Production output expected during April, 2011 = 350 units.

Number of back orders at the end of March, 2011 = 50 units.

What is the expected inventory at the end of April, 2011?

A) 0 units

B) 100 units

C) 150 unit

5) The following input is provided for developing an aggregate production plan for January through September, 2011;

Inventory at the end of December 2010 = 400 units

Forecast demand for January, 2011 = 150 units Production output expected during January, 2011 = 200 units.

What is the expected inventory at the end of January 2011?

A) 50 units

B) 200 units

C) 350 units

6) A restaurant employees 40 people. Each employee is scheduled to work 150 hours per month and is paid $15 per hour. The restaurant is busy and each employee can work up to an additional 20% of the regular schedule on overtime. Overtime is compensated at 1.5 times the regular wage rate. If all employees worked all regular and all overtime hours in a month, how much would the labour cost be for the month?

A) $90,000

B) $105,000

C) $112,000

D) $117,000

Answer 1

1) Which of the following is not a technique used for aggregate planning?

Correct answer is "D) Double smoothing"

2) Which statement concerning aggregate planning for services is accurate?

Correct answer is "D) All the statements are accurate"

3) Sales and operations plans usually deal with aggregated demand for products and services.

Correct answer is "A) True"

4)

Expected inventory at the end of April = Production output expected during April + Inventory at the end of March - Forecast demand for April - Number of backorders at the end of March

Expected inventory at the end of April = 350 + 0 - 200 - 50 = 100

Correct answer is B) 100 units

5)

Expected inventory at the end of January = Production output expected during January + Inventory at the end of December - Forecast demand for January

Expected inventory at the end of January = 200 + 400 - 150 = 450

Correct answer is D) 450 units

6)

Number of employees = 40

Each worker is scheduled to work per month = 150 hours

Regular time pay = $15 per hour

Additional overtime - 20% of regular time = 20%*150 = 30 hours

Overtime pay = 1.5*$15 = $22.5 per hour

Total labor = Total regular time cost + Total overtime cost

Total labor = (Number of employees * Number of regular hours per month * Regular time pay) + (Number of employees * Number of overtime hours per month * Overtime pay)

Total labor = (40*150*15) + (40*30*22.5)

Total labor = 117,000

Correct answer is "D) $117,000"

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