Question 1

Aggregate planning is capacity planning that typically covers a time horizon of one to three months.

Accepted Answer

Aggregate planning is a process of developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization. It typically covers a time horizon of 3 to 18 months, focusing on adjusting production rates, labor levels, inventory levels, and other operational variables to meet the forecasted demand in a cost-effective manner.

Question 2

A level capacity strategy is also known as a chase demand strategy.

Accepted Answer

A level capacity strategy involves producing at a consistent rate regardless of changing demand, while a chase demand strategy involves adjusting production levels to match actual demand.

Question 3

Seasonality in demand has the advantage of leveling out requirements for our product or service.

Accepted Answer

Seasonality in demand means that demand fluctuates throughout the year, creating peaks and troughs. This can result in uneven requirements for our product or service, which can be a disadvantage rather than an advantage.

Question 4

Demand can be altered in aggregate planning by promotion and producing additional product using overtime.

Accepted Answer

The answer of Demand can be altered in aggregate planning...

Question 5

Linear programming models yield the optimal solution.

Accepted Answer

Linear programming models are designed to find the optimal solution, which is the best possible outcome given the constraints and objectives of the model. Therefore, linear programming models always yield an optimal solution.

Question 6

The assignment of work to specific machines and people are examples of aggregate planning.

Accepted Answer

Aggregate planning involves determining the overall output levels in the medium term, typically for 3 to 18 months ahead, rather than assigning specific tasks to machines or people, which is more related to detailed scheduling or operations planning.

Question 7

The output from aggregate planning is a detailed business plan covering the next 2 to 12 months.

Accepted Answer

The answer of The output from aggregate planning is a...

Question 8

Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.

Accepted Answer

The main criterion for selecting an aggregate planning strategy is to minimize the total cost associated with meeting the production demands while maintaining a desired level of customer service.

Question 9

Aggregate planners commonly use trial-and-error methods in developing aggregate plans.

Accepted Answer

Trial-and-error methods are commonly used in aggregate planning as it involves developing multiple plans and comparing them to select the best one.

Question 10

Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques.

Accepted Answer

Aggregate planning techniques can be used by organizations facing seasonal changes in demand. These techniques help the organization to plan for resources and capacity to meet the expected demand during different seasons.

Question 11

The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start.

Accepted Answer

The answer of The master schedule indicates the quantity and...

Question 12

An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low.

Accepted Answer

In a chase strategy, production is increased or decreased along with demand. This allows for inventory levels to be kept low, as production is only done when necessary to meet customer demand.

Question 13

Aggregate planners typically use mathematical techniques such as linear programming and linear decision rules for planning.

Accepted Answer

The answer of Aggregate planners typically use mathematical techniques such...

Question 14

Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate range of time.

Accepted Answer

Aggregate planning typically covers a time frame of 3 to 18 months and helps a company to determine the required resources to meet anticipated demand during that period. It establishes a general plan for employment levels, production output, and inventory levels that will help the business achieve its overall objectives.

Question 15

The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand.

Accepted Answer

Aggregate planning is a strategic planning process that aims to balance an organization's resources and expected demand to achieve a production plan that meets business goals.

Question 16

Disaggregating an aggregate plan leads to a master schedule.

Accepted Answer

Disaggregating an aggregate plan involves breaking it down into detailed plans for each specific product or service, which leads to a master production schedule for manufacturing or a master schedule for service-based businesses. The master schedule provides the specific timing of when each product or service will be produced or delivered.

Question 17

Departmental budgeting is an example of aggregate planning.

Accepted Answer

Departmental budgeting is a form of aggregate planning that entails forecasting and allocating resources to various departments within an organization to achieve overall corporate goals. It aids in the coordination of activities and resources across multiple departments, allowing businesses to plan and control their operations effectively.

Question 18

Aggregate planners are concerned with the quality and quantity of expected demand.

Accepted Answer

Aggregate planners primarily focus on determining the quantity of products a company needs to produce to meet expected demand and the timing of production, not the quality of the products. Quality control is typically addressed in other areas of operations management.

Question 19

The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan.

Accepted Answer

Tables and charts aid in understanding and analyzing data, but they do not guarantee the arrival at an optimal plan due to the complexity of variables and constraints involved in aggregate planning.

Question 20

Capacity can be modified in aggregate planning by promotion and producing additional product using overtime.

Accepted Answer

The answer of Capacity can be modified in aggregate planning...

Quiz 11: Aggregate Planning and Master Scheduling