Posted: December 10th, 2015
ODS 333 – OPERATIONS & LOGISTICS MANAGEMENT FALL SEMESTER , 5th EXAMINATION, Chapters 12 and 13
Professor Philip Vaccaro
ODS 333 – OPERATIONS & LOGISTICS MANAGEMENT
FALL SEMESTER , 5th EXAMINATION, Chapters 12 and 13
NAME________________________________________________
TRUE or FALSE: ( select the one correct response )
- Average inventory per cycle equals average inventory per year.
TRUE FALSE
- If lead time is zero, the reorder point ( ROP ) equals the optimal number of
backorders.
TRUE FALSE
. 16. When using ABC analysis, class C items should be reviewed frequently.
TRUE FALSE
- An inventory chase strategy matches demand during the aggregate plan-
ning horizon by varying either the workforce level or the production rate.
TRUE FALSE
- The aggregate plan will specify the number and type of goods and services
to be produced on a daily and weekly basis, as consumer demand and eco-
nomic conditions change.
TRUE FALSE
- Production rate change costs follow a non-linear pattern.
TRUE FALSE
- Aggregate plans should be developed to minimize costs in each period.
TRUE FALSE
- Each aggregate plan should specify, as a minimum, a level of inventory,
labor force, and subcontracting.
TRUE FALSE
-2-
- Normally, property taxes are a non-relevant cost.
TRUE FALSE
- Today, the definition of the quasi-unit is usually determined at the corporate
level.
TRUE FALSE
- The graph or chart method of aggregate planning guarantees an optimal
minimum cost solution.
TRUE FALSE
- If desired, a planner can eliminate inventory stockouts in one or all
generated aggregate plans.
TRUE FALSE
- The lowest cost aggregate plan is usually generated by a chase strategy.
TRUE FALSE
- It is assumed today that the demand for goods and services is unalterable in
aggregate planning.
TRUE FALSE
- Good practice dictates postponement of production overtime until all
inventories have been exhausted in the aggregate plan.
TRUE FALSE
- The linear decision rule is a computer model that uses a search procedure
to look for the minimum cost combination of values for labor force size
and production rate.
TRUE FALSE
- Normally, subcontracting costs are a ‘relevant cost’ in aggregate planning.
TRUE FALSE
-3-
- Corporate policies can be embedded into aggregate plans at any time
during their development.
TRUE FALSE
- Each of the 3 pure or principal aggregate planning strategies and their
variations require very different amounts and forms of cost data.
TRUE FALSE
- When an aggregate planning problem is viewed as one of allocating
capacity to meet forecasted demand, it can be formulated in a linear
programming format.
TRUE FALSE
- ‘Service level’ is the chance, measured in percent, that there will be
a stockout.
TRUE FALSE
- Safety stock is ignored when computing the reorder point under
variable demand.
TRUE FALSE
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