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Chapter 13- Problems with correct answers

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Suggested Problems: Chapter 13: Discussion Questions: 1. Define aggregate planning. 2. Explain what the term aggregate in “aggregate planning” means. 4. Define chase strategy. 5. What is a pure strategy? Provide a few examples. 6. What is level scheduling? What is the basic philosophy un...

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  • January 15, 2023
  • 5
  • 2022/2023
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Suggested Problems:




Chapter 13:



Discussion Questions:

1. Define aggregate planning.

2. Explain what the term aggregate in “aggregate planning” means.

4. Define chase strategy.

5. What is a pure strategy? Provide a few examples.

6. What is level scheduling? What is the basic philosophy underlying it?

7. Define mixed strategy. Why would a firm use a mixed strategy instead of a simple pure strategy?

, Problems:

1. Prepare a graph of the monthly forecasts and average forecasted demand for Industrial Air Corp.,
a manufacturer of a variety of large air conditioners for commercial applications.




3. The president of Hill Enterprises, Terri Hill, projects the firm’s aggregate demand requirements over
the next eight months as follows:




Her operations manager is considering a new plan, which begins in January with 200 units on hand.
Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any
idle-time costs. The plan is called Plan A.

Plan A: Vary the workforce level to execute a “chase” strategy by producing the quantity demanded in the
prior month. The December demand and rate of production are both 1600 units per month. The cost of
hiring additional workers is $5000 per 100 units. The cost of laying off workers is $7500 per 100 units.
Evaluate this plan.

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