1. Which statement concerning aggregate planning for services is accurate?

Multiple Choice

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

2. The application of a variable pricing strategy to allocate capacity based on capacity available is referred to as:

Multiple Choice

a) Yield management

b) Aggregate planning

c) Master production scheduling

d) trade-off analysis

3. We currently have 80 (FTE) employees. Based on employment policy, the maximum number of temporary workers allowed is 20%. What is the maximum number of temporary workers allowed?

Multiple Choice

a) 4 temporary workers

b) 8 temporary workers

c) 16 temporary workers

d) 20 temporary workers

4. Rough-cut capacity planning is used:

Multiple Choice

a) To calculate values for variables in a linear programming model for aggregate planning

b) Only for aggregate planning in services where approximations are sufficient

c) To test the feasibility of a proposed master production schedule (MPS)

d) As an alternative to developing a master production schedule (MPS)

5. The outputs of a week-by-week master production schedule (MPS) includes all the following except:

Multiple Choice

a) Demand forecasts

b) Projected inventory

c) Planned production

d) Uncommitted inventory

6. Available-to-promise (ATP) inventory is inventory that:

Multiple Choice

a) Is backordered

b) Has already been promised to a specific customer

c) Is uncommitted planned inventory

d) Has been ordered by a specific customer