Question 1. Aggregate planning is intermediate-range capacity planning that typicall

1. Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of one to three months.
True False

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

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

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

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

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

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

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

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

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

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

12. An advantage of a “chase” strategy for aggregate planning is that inventories can be kept relatively low.
True False

13. Linear programming models yield the optimal solution.
True False

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

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

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

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

18. Disaggregating an aggregate plan leads to a master schedule.
True False

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

20. Departmental budgeting is an example of aggregate planning.
True False

21. Master schedulers are employed primarily by service organizations.
True False

22. Subcontracting ‘in’ would apply to periods in which our organization has excess capacity.
True False

23. Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity.
True False

24. A time fence in the master schedule is used to prevent unauthorized people from making changes to the schedule.
True False

25. After the first period of the planning horizon, available-to-promise is computed only for those periods in which there is an MPS quantity.
True False

26. In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative.
True False