11. Because services cannot be inventoried, it is more important to match capacity and demand in operations planning for services than it is for manufactured products.

a) True

b) False

12. An important difference in aggregate planning for services when compared to manufactured products is:

Multiple Choice

a) Demand is more predictable for services

b) It is much easier to hire and lay off workers for services

c) Services can't be inventoried

d) Capacity is not limited by staffing level for services

13. 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?

Multiple Choice

a) $90,000

b)$105,000

c) $112,000

d) $117,000

14. Information needed to develop a master production schedule includes beginning inventory, demand forecasts, and actual customer orders.

Multiple Choice

• True
• False

15. The three inputs required for developing a master production schedule are:

Multiple Choice

a) Current inventory, lot sizes, and available-to-promise inventory

b) Current inventory, forecasts of demand for each period, and orders committed to customers

c) Forecast of demand for each period, lot sizes, and available-to-promise inventory

d) Forecasts of demand for each period, scheduled overtime, and orders committed to customers