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1. What is an aggregate plan?
A. A short-term daily production schedule
B. A long-term strategic corporate plan
C. A medium-term plan that determines resources needed to meet demand
D. A financial audit document
{Correct Answer: C}
2. What time horizon is typically covered by an aggregate plan?
A. 1–3 months
B. 3–6 months
C. 6–18 months
D. More than 3 years
{Correct Answer: C}
3. Which of the following factors are determined by an aggregate plan?
A. Product pricing and promotion strategies
B. Workforce size, inventory levels, and production rates
, C. Supplier contracts and vendor selection
D. Facility layout and equipment design
{Correct Answer: B}
4. The primary objective of an aggregate plan is to balance:
A. Costs and profits
B. Labor and capital
C. Supply and demand
D. Quality and productivity
{Correct Answer: C}
5. Which two goals are central to aggregate planning?
A. Market share and revenue growth
B. Optimizing costs and customer service
C. Innovation and product differentiation
D. Risk reduction and compliance
{Correct Answer: B}
6. What is the purpose of a financial plan?
A. To determine production layouts
B. To identify sources and uses of funds and project financial performance
C. To schedule labor shifts
D. To design marketing campaigns
{Correct Answer: B}
7. What is the primary role of an engineering plan?
A. Managing cash flows
B. Supporting research, product design, and process design
C. Monitoring inventory turnover
D. Controlling labor costs
{Correct Answer: B}
,8. What is a Master Production Schedule (MPS)?
A. A long-term forecast of industry demand
B. A financial projection of manufacturing costs
C. An anticipated production schedule with specific quantities and dates
D. A supplier ordering system
{Correct Answer: C}
9. What does the Master Production Schedule (MPS) specify?
A. Marketing strategies for each product
B. How resources will be used and which units will be produced over time
C. Employee performance expectations
D. Long-term capital investment plans
{Correct Answer: B}
10.Demand-based options are strategies that:
A. Eliminate variability in production
B. Respond to fluctuations in customer demand
C. Reduce labor costs permanently
D. Focus solely on supplier efficiency
{Correct Answer: B}
11.Which of the following are common demand-based options?
A. Hiring and firing employees
B. Equipment replacement
C. Inventory and back orders
D. Facility relocation
{Correct Answer: C}
12.Which of the following is an example of a demand-based option?
A. Increasing plant size
B. Using finished goods inventory
C. Redesigning the production process
, D. Outsourcing payroll
{Correct Answer: B}
13.Which is another example of a demand-based option?
A. Offering incentives to smooth demand
B. Automating production lines
C. Expanding warehouse capacity
D. Reducing product variety
{Correct Answer: A}
14.Finished goods inventory is best described as:
A. Raw materials awaiting processing
B. Products available for shipment to customers
C. Goods under production
D. Returned or defective items
{Correct Answer: B}
15.What are back orders?
A. Orders canceled by customers
B. Orders filled ahead of schedule
C. Customer orders not filled due to insufficient inventory or production
D. Emergency supplier purchases
{Correct Answer: C}
16.What is a possible consequence of excessive back orders?
A. Increased customer loyalty
B. Reduced inventory holding costs
C. Customers may take their business elsewhere