chapter 11

Question 1

aggregate planning

Answer 1

intermediate-range capacity planning that typically covers a time horizon of 2 to up to 18 months

Question 2

business plan

Answer 2

establishes operations and capacity strategies

Question 3

aggregate plan

Answer 3

establishes operations capacity

Question 4

master schedule

Answer 4

establishes schedules for specific products

Question 5

aggregation

Answer 5

the plan must be in units of measurement that can be understood by the firm’s non-operations personnel

Question 6

level capacity strategy

Answer 6

maintaining a steady rate of output while meeting variations in demand by a combo of inventories, overtime, part-time workers

Question 7

chase demand strategy

Answer 7

matching capacity to demand; the planned output for any period would be equal to the expected demand for that period

Question 8

yield management

Answer 8

seeks to maximize revenue by using a strategy of variable pricing; prices are set relative to capacity availability`

Question 9

disaggregation

Answer 9

moving from the aggregate plan to a master schedule

Question 10

master production schedule

Answer 10

the result of disaggregating an aggregate plan, shows quantity and timing of specific end items for a scheduled horizon

Question 11

master schedule

Answer 11

indicates the quantity and timing for a product, or a group of products

Question 12

uncommitted inventory is called ___

Answer 12

available-to-promise (ATP) inventory