Aggregate Production Planning

Question 1

Aggregate Production Planning (APP) definition:

Answer 1

Develops a production plan for 6-12 mo in advance

Question 2

Level Production:
Extra Cost:
Definition:

Answer 2

EC: Excess inventory
Def: Make same amount consistently, use inventory

can use it when output is proportional to workforce

Question 3

Chase Demand:
Extra Cost:
Definition:

Answer 3

EC: Hiring & Firing (training)
Def: Fluctuate workforce to meet demand

Question 4

Overtime:
Extra Cost:
Definition:

Answer 4

EC: Overtime pay (1.5)
Definition: Increase working hours of current employees

Question 5

Subcontract:
Extra Cost:
Definition:

Answer 5

EC: Profit to subcontractor
Def: Give work beyond your capacity to other firms

Question 6

Backordering:
Extra Cost:
Definition:

Answer 6

EC: compensating customers for making them wait
Def: Ask customers to wait until you have the capacity to produce more products

Question 7

What are the three strategy selection tools?

Answer 7

1. Trial & Error
2. Transportation Method
3. Linear Programming

Question 8

What are the columns for Level Production trial & error?

Answer 8

QTR__Demand__Reg__Inventory

Question 9

What are the columns for Chase Demand trial & error?

Answer 9

QTR__Demand__Reg__W Needed__H__F

Question 10

What are the columns for Level Production with OT & subcontracting trial & error?

Answer 10

QTR__Demand__Reg__Sub__OT__Inventory

Question 11

Thing to remember from backorder trial & error is….

Answer 11

to add backorders from the previous quarter to the next quarter.