MGM2223 QUIZ 3

Top executives tend to focus their attention on which type of forecasts?

• short-range

• intermediate-range

• long-range

• weather

What is the typical time horizon for aggregate planning?

• less than a month

• up to 3 months

• 3 to 18 months

• over one year

The objective of aggregate planning is to meet forecast demand while ________ over the planning period.

• minimizing cost

• maximizing service level

• minimizing stock out

• minimizing fixed cost

Dependence on an external source of supply is found in which of the following aggregate planning strategies?

• varying production rates through overtime or idle time

• subcontracting

• using part-time workers

• back ordering during high demand periods

Which of the following aggregate planning strategies is a demand option?

• changing price

• subcontracting

• varying production levels

• changing inventory levels

Aggregate planning for service firms that provide intangible output deals mainly with:

• smoothing the production rate and finding the optimal size of the workforce.

• centralized purchasing.

• planning for human resource requirements and managing demand.

• centralized production.

Demand options may include the following, except

• Using part-time workers

• Influencing demand

• Back ordering during high-demand periods

• Counter-seasonal product and service mixing

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