Aggregate Planning (Q2)

Aggregate planning occurs over the medium or intermediate future of 3 to 18 months

• True

• False

The only objective of aggregate planning is to minimize the cost of matching capacity to demand over the planning period.

• True

• False

Aggregate planning in manufacturing ties organizational strategic goals to a production plan.

• True

• False

Disaggregation is the process of breaking the aggregate plan into greater detail; one example of this detail is the Master Production Schedule.

• True

• False

In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity.

• True

• False

In aggregate planning, one of the adjustable elements of capacity is the extent of subcontracting.

• True

• False

The constant level production strategy allows lower inventories than the pure chase strategy (zero-inventory).

• True

• False

Finding an ideal mixed strategy is complicated by the huge number of possible strategies.

• True

• False

The linear programming is an optimizing approach to aggregate planning.

• True

• False

Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time.

• True

• False