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Chapter 19 Practice Questions

Terms in this set (11)

Term used to refer to the process a firm uses to balance supply and demand
Sales and operations planning
When doing aggregate planning, these are the three general operations-related variables that can be adjusted
Production rate, workforce level, inventory
A strategy where the production rate is set to match expected demand
Chase strategy
When overtime is used to meet demand and avoid the costs associated with hiring and firing
Stable workforce - Variable work hours, hybrid strategy
A strategy that uses inventory and backorders as part of the strategy to meet demand
Level strategy
Sometimes a firm may choose to have all or part of the work done by an outside vendor. This is the term used for the approach
Subcontracting
PT 1: If expected demand during the next four quarters is 150, 125, 100, and 75 thousand units, and each worker can produce 1,000 units per quarter, how many workers should be used if a level strategy is being employed?
PT 2: How many workers would be needed for a chase strategy?
PT 1: 113
PT 2: 150, 125, 100, 75
In a service setting, what general operations-related variable is not available compared to a production setting?
Inventory
The practice of allocating capacity and manipulating demand to make it more predictable
Yield management
What is the objective of the aggregate operations plan?
Minimize the cost of resources that are required to meet demand
What is the purpose of sales and operations planning?
Provide better customer service, lower inventory, shorten customer lead times, stabilize production rates
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