P370 Hw2

Topics: Supply and demand, Manufacturing resource planning, Planning Pages: 3 (721 words) Published: April 16, 2011
P370 HW2 Quiz
11143 - Home work #2 (quiz)  |  |  |
 (5 pts)  1.| Converting quarterly and annual business plans into broad output and labor requirements for the intermediate term is known as:|  | A. Aggregate planning.
B. Master production scheduling.
C. Rough-cut capacity planning.
D. Materials requirements planning.
E. Capacity requirements planning.|
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 (5 pts)  2.| Which of the following is NOT a method used in aggregate planning to cope with fluctuations in demand?|  | A. Backordering demand in peak periods
B. Building inventory in advance of peak periods
C. Hiring additional workers in peak periods
D. Construction of a new plant and/or finished goods warehouse E. All of the above are methods used to cope with fluctuating demand in | | | |
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 (5 pts)  3.| Which aggregate planning strategy typically results in greater inventory carrying costs?|  | A. Level strategy.
B. Chase strategy.
C. Subcontracting strategy.
D. Material requirements production strategy
E. It depends on other factors|
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 (5 pts)  4.| 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?|  | A. Hire additional workers when demand increases and outplace them when demand decreases B. Stock up excessive inventory during the periods of low demand. C. Purchase the shortages from subcontractors.

D. Allow the employees to work overtime when the demand is low. E. All of the above|
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 (5 pts)  5.| 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...
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