Aggregate Planning Exam Questions
With Already Solved Correctly Answers
Aggregate Planning CORRECT ANSWERS Intermediate range capacity planning,
usually covering 2 to 12 months.
Process of balancing consumer demand with available fixed capacity via the
manipulation of adjustable capacity
Goal is to achieve production plan that will effectively use the companys resources to
match demand
Business plan CORRECT ANSWERS Encompasses long term and intermediate
planning. Includes corporate strategies and policies, economic, competitive and political
conditions, and aggregate demand forecasts.
Establishes operations and capacity strategies
Sales and operations planning CORRECT ANSWERS Intermediate range decisions to
balance supply and demand, inter grating financial and operations planning
Aggregate Capacity CORRECT ANSWERS The process of planning and managing the
overall capacity of an organization's resources
Level Capacity Strategy Pure CORRECT ANSWERS Maintaining a steady rate of
regular time output while meeting variations in demand by a combination of opinion
(inventories, overtime, part time workers, subcontracting l, and back orders)
INVENTORY USE
Capacities are kept constant over planning horizon(+stable output rates and workforce -
greater inventory costs, increased overtime and idle time)
Chase demand strategy Pure CORRECT ANSWERS Matching capacity to demand; the
planned output for a period is set at the expected demand for that period. Hiring and
firing people
Capacities (eg. labor) are adjusted to match demand requirements over planning
horizon (+investment in inventory are low, labor utilization is high -morale and quality!!
And costs of adjusting output rates or workforce levels))
Demand quantity CORRECT ANSWERS If demand exceeds capacity, attempt to
achieve balance altering capacity, demand or both
Timing of demand CORRECT ANSWERS Even if demand and capacity are appx equal,
planners still have to deal with uneven demand within the planning period
With Already Solved Correctly Answers
Aggregate Planning CORRECT ANSWERS Intermediate range capacity planning,
usually covering 2 to 12 months.
Process of balancing consumer demand with available fixed capacity via the
manipulation of adjustable capacity
Goal is to achieve production plan that will effectively use the companys resources to
match demand
Business plan CORRECT ANSWERS Encompasses long term and intermediate
planning. Includes corporate strategies and policies, economic, competitive and political
conditions, and aggregate demand forecasts.
Establishes operations and capacity strategies
Sales and operations planning CORRECT ANSWERS Intermediate range decisions to
balance supply and demand, inter grating financial and operations planning
Aggregate Capacity CORRECT ANSWERS The process of planning and managing the
overall capacity of an organization's resources
Level Capacity Strategy Pure CORRECT ANSWERS Maintaining a steady rate of
regular time output while meeting variations in demand by a combination of opinion
(inventories, overtime, part time workers, subcontracting l, and back orders)
INVENTORY USE
Capacities are kept constant over planning horizon(+stable output rates and workforce -
greater inventory costs, increased overtime and idle time)
Chase demand strategy Pure CORRECT ANSWERS Matching capacity to demand; the
planned output for a period is set at the expected demand for that period. Hiring and
firing people
Capacities (eg. labor) are adjusted to match demand requirements over planning
horizon (+investment in inventory are low, labor utilization is high -morale and quality!!
And costs of adjusting output rates or workforce levels))
Demand quantity CORRECT ANSWERS If demand exceeds capacity, attempt to
achieve balance altering capacity, demand or both
Timing of demand CORRECT ANSWERS Even if demand and capacity are appx equal,
planners still have to deal with uneven demand within the planning period
