OPS Test 3

The objective in the aggregate planning (or sales and operations planning) model is to:

• minimize costs over the medium-term time horizon

• maximize demand in the medium-term time horizon

• minimize number of workers available in the medium-term time horizon

• maximize production in the medium-term time horizon

In the aggregate planning model, constraints represent:

• the unit cost of producing according to the aggregate plan

• the values under the control of the manager

• limitations on the choices faced by mangers

• the total cost to meet the production schedule

• the forecast of demand for a product

A primary constraint that is implicitly assumed in the aggregate planning model is:

• demand is met on-time with units available to meet demand

• ending inventory at each month is greater than the next month's demand

• production is equal to production capacity

• production is equal to demand

• production is greater than or equal to production capacity

A primary constraint that is implicitly assumed in the aggregate planning model is:

• production is greater than or equal to production capacity

• production is less than or equal to production capacity

• ending inventory at each month is greater than the next month's demand

• production is equal to demand

• production is equal to production capacity

An example of a constraint that is often relevant in the aggregate planning model is:

• production is greater than or equal to production capacity

• ending inventory at each month is greater than the next month's demand

• production is equal to production capacity

• overtime hours are less than or equal to maximum overtime hours

• overtime hours are greater than or equal to regular labor hours

An example of a constraint that is often relevant in the aggregate planning model is:

• ending inventory is less than or equal to storage capacity

• overtime hours are greater than or equal to regular labor hours

• ending inventory is greater than or equal to storage capacity

• production is equal to production capacity

• production is equal to demand

An example of a constraint that is often relevant in the aggregate planning model is:

• ending inventory at each month is greater than the next month's demand

• ending inventory is greater than or equal to storage capacity

• production is greater than or equal to production capacity

• workers hired are less than or equal to an upper limit on workers hired

• overtime hours are greater than or equal to regular labor hours

Beginning workers in the aggregate planning model are determined beyond Month 1 as:

• available workers for the previous month times worker retention percentage

• available workers from the previous month plus workers hired

• product demand times unit price

• beginning workers plus workers hired minus workers fired

• hours available times hourly labor cost

Workers available in the aggregate planning model are determined as:

• hours available times hourly labor cost

• beginning workers plus workers hired minus workers fired

• product demand times unit price

• available workers from the previous month plus workers hired

• available workers for the previous month times worker retention percentage

Decision variables that are often required in the aggregate planning model are (check all that apply):

• workers fired

• workers hired

• units produced

• overtime hours assigned

• unit holding cost