Aggregate Planning

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

Which of the following is NOT an input to S&OP?

• capacity decisions

• product decisions

• process planning

• master production schedule

_________________is an approach to determine the quantity and timing of production for the intermediate future.

• Aggregate planning

• Planning Process

• Chase strategy

• Transportation method

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

An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following?

• production rates

• labor levels

• inventory levels

• facility capacity

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

A firm practices a pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900, 700, 1000, and 1000. Hiring cost is $20 per unit, and layoff cost is $5 per unit. Over the next year, what will be the sum of hiring and layoff costs?

• $500

• $2,500

• $7,500

• $7,000

"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes which of the following?

• the linear decision rule

• simulation

• the transportation method

• graphical methods