Question 1
"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes
◦ the transportation method.
◦ the management coefficients model.
◦ the linear decision rule.
◦ graphical methods.
◦ simulation.
Question 2
A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period) it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that
◦ the January requirement is below level production of 420 units.
◦ the firm must hire workers between December and January.
◦ level production is approximately 1000 units per day.
◦ level production of 420 units per day is below the January requirement.
◦ level production is approximately 420 units per month.
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