Aggregate Planning Quiz

What is the main objective of aggregate planning?

• Maximize workforce levels

• Maximize customer service

• Maximize profit

• Maximize production rates

What is the time range typically covered by aggregate planning?

• 2-18 months

• 6-12 months

• 24-36 months

• 1-3 months

What is the purpose of back ordering in aggregate planning?

• To increase demand

• To minimize changes in workforce levels

• To minimize inventory investment

• To maximize production rates

What is the benefit of cross-training in aggregate planning?

• Minimize changes in production rates

• Minimize inventory investment

• Maximize customer service

• Create flexibility in scheduling capacity

What are the inputs required for aggregate planning?

• Sales forecasts, production levels, inventory levels

• Availability of resources, cost of equipment, cost of inventories

• Gallons, feet, pounds of output

• Customer backlogs, total number of workers, hours of machine time

What is the purpose of subcontracting in aggregate planning?

• To minimize inventory investment

• To minimize changes in workforce levels

• To create flexibility in scheduling capacity

• To temporarily obtain additional capacity

What is the main benefit of aggregate planning?

• Calculate the cost for each plan

• Develop alternative plans

• Determine demand for each period

• All of the above

What is the term used to describe the total number of units per time period that can be produced?

• Back ordering

• Inventory

• Demand

• Capacity

What is the purpose of new demand creation in aggregate planning?

• To maximize utilization of plant and equipment

• To minimize inventory investment

• To create complementary demand for a product or service

• To minimize changes in production rates

What is the time range covered by most aggregate plans?

• 1-3 months

• 24-36 months

• 6-12 months

• 2-18 months