Question 1. What is the primary output from an aggregate planning process?

Statement A. Minimize cost.

Statement B. Produce an inventory policy.

Statement C. Determine the labor requirements.

Statement D. Generate a production plan.

Statement E. None of the above

Question 2. Which aggregate planning strategy will always produce the minimum cost plan?

Statement A. Level Capacity

Statement B. Chase Demand

Statement C. Mixed

Statement D. Operations

Statement E. None of the above

Question 3. Which statement is correct in comparing the aggregate planning strategies of Level, Chase, and Mixed?

Statement A. A pure Level Capacity aggregate planning strategy has the most control over Inventory.

Statement B. A Mixed aggregate planning strategy has the most control over Inventory.

Statement C. A Mixed aggregate planning strategy has the most control over Labor.

Statement D. A pure Chase Demand aggregate planning strategy has the most control over Inventory.

Statement E. A pure Chase Demand aggregate planning strategy has the most control over Labor.

Question 4. Consider the quarterly demand 3200,2200,4400,3800, for quarters 1,2,3,4, respectively, with a beginning and ending annual inventory of 500. Let the production standard be 250 items/quarter. Let the carrying cost be $28/item/quarter. Which statement is correct?

Statement A. For a Level strategy, the production for quarter 1 is 3400 and the annual average inventory is 500.

Statement B. For a Chase strategy, the production for quarter 1 is 3200 and the annual average inventory is 1000.

Statement C. For a Level strategy, the production for quarter 1 is 3400 and the annual average inventory is 1000.

Statement D. For a Chase strategy, the production for quarter 1 is 3200 and the annual average inventory is 2000.

Statement E. For a Level strategy, the production for quarter 1 is 3400 and the annual average inventory is 2000.

Question 5. Consider the quarterly demand 3200,2200,4400,3800, for quarters 1,2,3,4, respectively, with a beginning and ending annual inventory of 500. Let the production standard be 250 items/quarter. Let the carrying cost be $28/item/quarter. Which statement is correct?

Statement A. For a Chase strategy, the first quarter FTE requirement is 13.6 and the annual requirement of quarterly FTEs is 90.

Statement B. For a Level strategy, the first quarter FTE requirement is 13.6 and the annual requirement of quarterly FTEs is 54.4.

Statement C. For a Chase strategy, the first quarter FTE requirement is 12.8 and the annual requirement of quarterly FTEs is 90.

Statement D. For a Level strategy, the first quarter FTE requirement is 12.8 and the annual requirement of quarterly FTEs is 54.4.

Statement E. For a Chase strategy, the first quarter FTE requirement is 15.4 and the annual requirement of quarterly FTEs is 90.

Question 6. Consider the quarterly demand 3200,2200,4400,3800, for quarters 1,2,3,4, respectively, with a beginning and ending annual inventory of 500. Let the production standard be 250 items/quarter. Let the carrying cost be $28/item/quarter. Which statement is correct?

Statement A. For a Chase strategy, fire 2.4 FTEs the beginning of the fourth quarter.

Statement B. For a Level strategy, hire 13.6 FTEs the beginning of the first quarter.

Statement C. For a Chase strategy, fire 8.8 FTEs the beginning of the second quarter.

Statement D. For a Level strategy, hire 17.6 FTEs the beginning of the third quarter.

Statement E. For a Chase strategy, fire 15.2 FTEs the beginning of the fourth quarter.

Question 7. Consider the quarterly demand 3200,2200,4400,3800, for quarters 1,2,3,4, respectively, with a beginning and ending annual inventory of 500. Let the production standard be 250 items/quarter. Let the carrying cost be $28/item/quarter. Which statement is correct?

Statement A. For a Chase strategy, the total carrying cost for the first quarter is $16800 and the total annual carrying cost is $112000.

Statement B. For a Level strategy, the total carrying cost for the first quarter is $14000 and the total annual carrying cost is $112000.

Statement C. For a Chase strategy, the total carrying cost for the first quarter is $14000 and the total annual carrying cost is $56000.

Statement D. For a Level strategy, the total carrying cost for the first quarter is $16800 and the total annual carrying cost is $56000.

Statement E. For a Level strategy, the total carrying cost for the first quarter is $14000 and the total annual carrying cost is $112000.

Question 8. Consider the quarterly demand 3200,2200,4400,3800, for quarters 1,2,3,4, respectively, with a beginning annual inventory of 500 but an ending annual inventory objective of 580. Let the production standard be 250 items/quarter. Let the carrying cost be $28/item/quarter. Which statement is correct?

Statement A. For a Chase strategy, the total annual carrying cost is $61600.

Statement B. For a Level strategy, the total annual carrying cost is $116480.

Statement C. For a Chase strategy, the total annual carrying cost is $15400.

Statement D. For a Level strategy, the total annual carrying cost is $117600.

Statement E. For a Level strategy, the total annual carrying cost is $29400.

Question 9. Consider the quarterly demand 3200,2200,4400,3800, for quarters 1,2,3,4, respectively. Let the production standard be 250 items/quarter. Let the carrying cost be $28/item/quarter. Which production plan represents a mixed strategy that satisfies the requirements of a beginning annual inventory of 500 but an ending annual inventory objective of 460?

Statement A. Production of 3390,3390,3390,3390, for quarters 1,2,3,4, respectively.

Statement B. Production of 3190,2190,4390,3790, for quarters 1,2,3,4, respectively.

Statement C. Production of 2900,2900,3900,3900, for quarters 1,2,3,4, respectively.

Statement D. Production of 2900,3130,3700,3830, for quarters 1,2,3,4, respectively.

Statement E. Production of 2700,2100,4600,4160, for quarters 1,2,3,4, respectively.

Question 10. Consider the quarterly demand 3200,2200,4400,3800, for quarters 1,2,3,4, respectively, with a beginning and ending annual inventory of 500. Let the production standard be 250 items/quarter. Let the carrying cost be $28/item/quarter. Let the hiring cost be $120/FTE and the firing cost be $180/FTE. What is the minimum cost production plan for quarters 1,2,3,4, respectively, where the cost is hiring, firing, and inventory carrying?

	Production Plan A.	2700	2200	4400	4300
	Production Plan B.	2900	2000	4000	4700
	Production Plan C.	3200	2200	4400	3800
	Production Plan D.	2500	2100	4800	4200
	Production Plan E.	3400	3400	3400	3400

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