
Aggregate Planning Options Quiz

Quiz
•
Business
•
University
•
Hard
Rusalbiah Che Mamat
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an advantage of changing inventory levels as an aggregate planning option?
No abrupt production changes
Avoids the costs of other alternatives
Matches seasonal fluctuations without hiring/training costs
Permits flexibility and smoothing of the firm’s output
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a disadvantage of varying workforce size by hiring or layoffs as an aggregate planning option?
Loss of quality control; reduced profits; loss of future business
Overtime premiums; tired workers; may not meet demand
Hiring, layoff, and training costs may be significant
Inventory holding cost may increase
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a disadvantage of varying production rates through overtime or idle time as an aggregate planning option?
Changes in human resources are gradual or none; no abrupt production changes
Hiring, layoff, and training costs may be significant
Overtime premiums; tired workers; may not meet demand
Loss of quality control; reduced profits; loss of future business
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an advantage of sub-contracting as an aggregate planning option?
Permits flexibility and smoothing of the firm’s output
Matches seasonal fluctuations without hiring/training costs
Avoids the costs of other alternatives
No abrupt production changes
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a disadvantage of using part-time workers as an aggregate planning option?
High turnover/training costs; quality suffers; scheduling difficult
Overtime premiums; tired workers; may not meet demand
Hiring, layoff, and training costs may be significant
No abrupt production changes
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an advantage of influencing demand as an aggregate planning option?
No abrupt production changes
Hiring, layoff, and training costs may be significant
Creates marketing ideas. Overbooking used in some businesses
Matches seasonal fluctuations without hiring/training costs
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a disadvantage of back ordering during high-demand periods as an aggregate planning option?
Inventory holding cost may increase
Customer must be willing to wait, but goodwill is lost
Hiring, layoff, and training costs may be significant
Overtime premiums; tired workers; may not meet demand
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