IE483 Supply Chain Management and Logistics: Aggregate Planning Quiz
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Questions and Answers

What is the primary objective of aggregate planning in a supply chain?

  • Minimize workforce overtime costs
  • Minimize inventory holding costs
  • Optimize machine capacity utilization
  • Maximize the firm’s profit over the planning horizon (correct)
  • What does the term 'backlog' refer to in the context of aggregate planning?

  • Inventory on hand
  • Production quantity from regular time
  • Unmet demand (correct)
  • Excess capacity level
  • What is a common difficulty associated with the chase strategy in aggregate planning?

  • Utilizing excess machine capacity
  • Varying capacity and workforce on short notice (correct)
  • Stable machine capacity and workforce levels
  • Low levels of inventory
  • Which strategy in aggregate planning involves using excess machine capacity and a flexible work schedule?

    <p>Utilization/Flexibility strategy</p> Signup and view all the answers

    What is a key consideration when using linear programming for aggregate planning?

    <p>Considering supply chain constraints</p> Signup and view all the answers

    In aggregate planning, what should be focused on when selecting the aggregate unit and identifying capacity and production times?

    <p>Bottlenecks</p> Signup and view all the answers

    What is an example of an operational parameter in aggregate planning?

    <p>Production rate</p> Signup and view all the answers

    Which constraint is typically specified in aggregate planning?

    <p>$/hr cost of changing capacity</p> Signup and view all the answers

    What is the role of all supply chain stages in aggregate planning?

    <p>Optimize supply chain performance</p> Signup and view all the answers

    What is the primary output of an aggregate plan?

    <p>$/period production quantity from regular time, overtime, and subcontracted time</p> Signup and view all the answers

    In the cycle view of supply chain processes, how are the processes divided?

    <p>Based on the interface between two successive stages of the supply chain</p> Signup and view all the answers

    According to the push/pull view in supply chain processes, what distinguishes pull processes from push processes?

    <p>Pull processes are only initiated after a customer order</p> Signup and view all the answers

    What distinguishes push/pull view of supply chain processes from the cycle view of supply chain processes?

    <p>The trigger that initiates the processes</p> Signup and view all the answers

    How does the cycle view classify the processes within a supply chain?

    <p>Based on whether they are executed in response to a customer order or in anticipation of customer orders</p> Signup and view all the answers

    What type of execution is initiated in response to a customer order?

    <p>Pull</p> Signup and view all the answers

    Which strategy defines the set of customer needs a company seeks to satisfy through its products and services?

    <p>Competitive strategy</p> Signup and view all the answers

    What stage transforms inputs to outputs according to specifications to create the product?

    <p>Operations</p> Signup and view all the answers

    What is the primary focus of the supply chain strategy?

    <p>Material procurement</p> Signup and view all the answers

    What does strategic fit refer to in the context of competitive and supply chain strategies?

    <p>Aligned goals</p> Signup and view all the answers

    What may cause a company to fail in terms of strategic fit?

    <p>Lack of overall supply chain design</p> Signup and view all the answers

    What was Dell's competitive strategy between 1993 and 2006?

    <p>To provide a large variety of customizable products at a reasonable price</p> Signup and view all the answers

    What was Dell's supply chain designed to be between 1993 and 2006?

    <p>Very responsive to handle a wide variety of configurations requested by customers</p> Signup and view all the answers

    What must fit together to form a coordinated overall strategy?

    <p>Functional strategies and overall supply chain design</p> Signup and view all the answers

    What must the different functions in a company appropriately structure their processes and resources for?

    <p>To execute strategies successfully</p> Signup and view all the answers

    What did Dell's assembly facilities focus on between 1993 and 2006?

    <p>Being highly responsive and handling a wide variety of configurations requested by customers</p> Signup and view all the answers

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