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Which of the following is NOT true about aggregate planning in service organizat

ID: 454937 • Letter: W

Question

Which of the following is NOT true about aggregate planning in service organizations?

A. Facilities are fixed

B. The possibility of changing both supply and demand variables

C. A time horizon of 12 months, on average, is used

D. Requires inventory and capacity tradeoff

E. A variety of management objectives

Effective scheduling often deals with which three conflicting objectives?

A. High profits, low inventories, and good customer service

B. Low inventories, high efficiency, and good customer service

C. High efficiency, high profits, and short lead-time

D. Low inventories, good customer service, and short lead-time

Average inventory under a Q system:

A. Tends to be less than under a system of periodic review at fixed internals

B. Is depleted at a constant rate

C. Is set to cover average demand over lead time plus the review intervals

D. Is relatively flat in the neighborhood of the minimum

The five measures of supply chain performance are:

A. Inventory, quality, time, delivery, and flexibility

B. Cost, quality, time, delivery, and reliability

C. Inventory, cost, quality, time, and delivery

D. Cost, quality, flexibility, delivery, and time

Which of the following statements regarding capacity is incorrect?

A. Capacity can be measured in several units such as hours of output, number of units produced, number of customers served, etc.

B. Capacity is the maximum output that could be produced over a period.

C. None of the listed answers

D. Effective capacity is generally less than the theoretical capacity.

E. It does not make sense to define the term 'maximum capacity' of a process.

Which of the following is NOT true about aggregate planning in service organizations?

A. Facilities are fixed

B. The possibility of changing both supply and demand variables

C. A time horizon of 12 months, on average, is used

D. Requires inventory and capacity tradeoff

E. A variety of management objectives

Effective scheduling often deals with which three conflicting objectives?

A. High profits, low inventories, and good customer service

B. Low inventories, high efficiency, and good customer service

C. High efficiency, high profits, and short lead-time

D. Low inventories, good customer service, and short lead-time

Average inventory under a Q system:

A. Tends to be less than under a system of periodic review at fixed internals

B. Is depleted at a constant rate

C. Is set to cover average demand over lead time plus the review intervals

D. Is relatively flat in the neighborhood of the minimum

Explanation / Answer

1.C. A time horizon of 12 months, on average, is used

A planning horizon is considered from about 3 to 18 months, with the periodic updating.

2. B. Low inventories, high efficiency, and good customer service

WITHIN THE AVAILABLE RESOURCES, SCHEDULING SEEKS TO SATISFY THE CONFLICTING OBJECTIVES OF LOW INVENTORIES, HIGH EFFIECENCY AND GOOD CUSTOMER SERVICE.

3. A. Tends to be less than under a system of periodic review at fixed internals

Average inventory is a calculation comparing the value or number of a particular good or set of goods during two or more specified time periods.

4. d.Cost, quality, flexibility, delivery, and time

Apart from the common criteria such as cost and quality, five other performance measurements are defined: resource utilization; flexibility; visibility; trust; and innovativeness

5. d. Effective capacity is generally less than the theoretical capacity.

Effective capacity is less than the design capacity


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