Which of the following statements regarding aggregate planning in restaurants is TRUE?
A) Aggregate scheduling is directed toward smoothing the production rate and finding the optimal order size.
B) It usually requires building very high inventory levels during slack periods.
C) Traditional aggregate planning methods usually do not apply to restaurants.
D) The relevant units of time may be much smaller than in manufacturing.
E) Inventory tends to be less perishable than in manufacturing.

Question

Quizplus · Accepted Answer

The relevant units of time in restaurants may be much smaller than in manufacturing, as restaurant activities occur in a matter of minutes, hours, or days, rather than months or quarters. Traditional aggregate planning methods may not apply to restaurants, and building high inventory levels during slack periods is not a typical practice due to the perishable nature of inventory, which tends to be less durable than in manufacturing. Aggregate scheduling is directed toward smoothing the production rate and finding the optimal order size, but this may involve different strategies in a restaurant context.

Which of the Following Statements Regarding Aggregate Planning in Restaurants