Aggregate Planning (Q1)

Aggregate planning involves a more long-term horizon, while scheduling involves planning in the shorter term.

• True

• False

The goal of the master production schedule is to determine the quantity of each product to be produced each week in order to meet demand while respecting available capacity.

• True

• False

Generally speaking, the mixed strategy makes it possible to respect constraints, but it implies a higher overall cost.

• True

• False (the mixed strategy does not necessarily implies a higher cost)

The zero-inventory (chase demand) strategy is that which allows for the most stable workforce level.

• True

• False (it is the level production strategy that allows for the most stable workforce level)

The aggregate plan with the lowest cost should always be chosen.

• True

• False (it is the plan that best respects the constraints and objectives of the company at a reasonable cost)

Equivalent units serve to establish demand for different products

• True

• False

The chase demand (zero-inventory) and level production strategies represent two extreme approaches aimed at matching supply to demand.

• True

• False

The level production strategy usually involves the highest inventory levels.

• True

• False

A company evaluates its unit holding cost at $12 per month and its stock-out cost at $48 per month. In this case, if units need to be kept in inventory for more than four months to avoid stock-outs, a stock-out would be preferable.

• True

• False

A company that manufactures very different product should produce an aggregate plan for each product.

• True

• False (the aggregate plan must include all products or, at least, the main families of products.)