Aggregate Planning Quiz

What is the main objective of aggregate planning?

• Minimize the demand for service

• Maximize the demand for service

• Maximize the cost of production

• Minimize the cost of production

What is the typical planning horizon for aggregate planning?

• 24 months to 36 months

• 1 month to 6 months

• 6 months to 18 months

• 18 months to 24 months

What is the purpose of using aggregate sense in planning?

• To maximize the cost of production

• To minimize the demand for service

• To reduce the level of detail

• To increase the level of detail

What is the main advantage of using subcontracting as a capacity option?

• Higher costs

• Lower quality of products

• Assurance of timely delivery

• Decreased customer satisfaction

What is the potential disadvantage of using backorders as a demand option?

• Decreased sales

• Increased customer satisfaction

• Loss of goodwill

• No impact on customer loyalty

What is the purpose of counter seasonal products and service mixing?

• To increase idle capacity

• To decrease demand

• To balance capacity utilization

• To reduce production rates

What is the main disadvantage of using part-time workers as a capacity option?

• Increased productivity levels

• Improved employee morale

• Decreased labor pool availability

• Higher training costs

What is the primary focus of aggregate planning?

• Medium-term planning

• Short-term planning

• Strategic planning

• Long-term planning

What is the purpose of developing a product mix of counter seasonal items?

• To decrease demand

• To reduce workforce size

• To increase production costs

• To balance capacity utilization

What is the potential disadvantage of using overtime as a capacity option?

• Increased costs

• Lower training costs

• Decreased labor pool availability

• Improved employee morale