Cours 5

Question 1

What are equivalents units?

Answer 1

They are reference unit that considers the capacity required by each product.

Question 2

What are the 3 types of aggregate planning strategies?

Answer 2

• Chase demand.
• Level production.
• Mixed.

Question 3

What are the variables available to aggregate planning?

Answer 3

• Hiring and laying off employees.
• Using overtime or part-time work.
• Accepting idle time and unused capacity.
• Building inventory.
• Accepting stock-outs or backorders.
• Using subcontracting.

Question 4

What is the chase-demand strategy?

Answer 4

The production rate is adjusted in each period to precisely match forecast demand.

Question 5

Draw the graph of the chase-demand strategy.

Answer 5

Question 6

What is the level production strategy?

Answer 6

The production rate is kept constant across all periods regardless of variations in demand forecasts.

Question 7

Draw the graph of the level production strategy.

Answer 7

Question 8

What is the mixed strategy?

Answer 8

The production rate changes from one period to the next, but less so than forecasted demand. This combined approach falls between the extremes of the level production strategy and the chase demand strategy.

Question 9

Draw the graph of the mixed strategy.

Answer 9