1. The aggregate plan gets input or feedback from which of the following areas?
a. engineering
b. finance, marketing, and human resources
c. the master production schedule
d. procurement, production, and general management
e. all of the above
2. Which of the following is not an ingredient for controlling labor cost in services?
a. accurate scheduling of labor-hours to assure quick response to customer demand
b. an on-call labor resource that can be added or deleted to meet unexpected demand
c. contract overseas labor to obtain a lower wage scale
d. flexibility of individual worker skills that permits reallocation of available labor
e. flexibility in rate of output or hours of work to meet changing demand
3. Which of the following is a function of inventory?
a. to decouple or separate parts of the production process
b. to decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers
c. to take advantage of quantity discounts
d. to hedge against inflation
e. All of the above are functions of inventory
4. Which of the following would not generally be a motive for a firm to hold inventories?
a. to decouple or separate parts of the production process
b. to provide a stock of goods that will provide a selection for customers
c. to take advantage of quantity discounts
d. to minimize holding costs
e. All of the above are functions of inventory.