Which of the following statements about aggregate planning is true?
A) The development of mathematical models has allowed aggregate planners to discontinue use of trial-and-error methods.
B) In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand.
C) A pure chase strategy allows lower inventories when compared to pure level scheduling.
D) Disaggregation turns the master production schedule into an intermediate term master plan.
E) Disaggregation results in the material purchasing system.

Question

Quizplus · Accepted Answer

A pure chase strategy maintains demand and capacity at the same level, resulting in lower inventories compared to pure level scheduling. The development of mathematical models has certainly helped in making aggregate planning more efficient, but trial-and-error methods are not completely eliminated. Back orders are a result of insufficient supply and cannot be used to manipulate supply. Part-time workers are used to manage capacity, not demand. Disaggregation turns the aggregate plan into a master production schedule, not the other way around. The material purchasing system is a result of the master production schedule.

Which of the Following Statements About Aggregate Planning Is True