One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.
Answer: TRUE
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Management Chapter 13
- To use revenue management strategies, a business should have which combination of costs?
- Industries in which revenue management techniques are easiest to apply are those where:
- Revenue (or yield) management is best described as:
- Revenue management is MOST likely to be used in which one of the following situations?
- Which of the following characteristics makes revenue management UNATTRACTIVE to organizations that have perishable inventory?
- A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.
- Aggregate planning for service firms that provide intangible output deals mainly with:
- Which of the following statements regarding aggregate planning in services is FALSE?
- Which of the following is NOT one of the successful techniques for controlling the cost of labor in services?
- Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time.
- Techniques for controlling the cost of labor in services include accurate scheduling of labor hours to assure quick response to customer demand, on-call labor for unexpected demand, flexibility of labor skills for reallocation of available labor, and flexibility in rate of output or hours of work to meet changing demand.
- A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units, and in period 2, demand is 150 units. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 50 hours of overtime are available for $15/hour each period. If holding costs are $2 per unit each period, how many hours of regular employment should be used in period 1?
- Which of the following aggregate planning methods does not work if hiring and layoffs are possible?
- 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:
- "An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes which of the following?
- 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?
- The transportation method of linear programming is an optimizing approach to aggregate planning.
- Graphical techniques are easy to understand and use, but are not well-suited for generating optimal strategies.
- Which of the following actions is consistent with the use of level scheduling?
- 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?
- Which of the following is NOT an advantage of level scheduling?
- Which of the following is consistent with a pure chase strategy?
- Which of the following is NOT consistent with level scheduling?
- In level scheduling, what is kept uniform from month to month?
- Which of the following statements regarding aggregate planning is TRUE?