MGMT 339 Ch 11 Practice Questions and All Correct Answers.

T/F Aggregate planning is intermediate range planning for goods and services. - Answer TRUE T/F Aggregate planning typically covers a time interval of 2 to 4 years. - Answer FALSE Feedback: The typical range is 6 to 18 months T/F Sales and operations planning is intermediate-range decisions to balance supply and demand, integrating financial and operations planning. - Answer TRUE T/F Aggregate planning is concerned with both the quantity and timing of anticipated demand. - Answer TRUE T/F Supply options include pricing and using part-time workers - Answer FALSE Feedback: Pricing is a demand option. T/F Use of backorders is a demand option rather than a supply option. - Answer TRUE Feedback: Backorders shift demand to a later period. T/F Inventories can enable firms to increase capacity in future periods. - Answer TRUE Feedback: Firms can produce during slow periods and hold the inventory for a later period. T/F A level capacity strategy attempts to keep capacity level with demand. - Answer FALSE Feedback: That is the goal of a chase strategy. T/F A level strategy is more dependent on forecast accuracy than is a chase strategy. - Answer TRUE Feedback: This is due to the inflexibility associated with a level strategy T/F An advantage of a level approach is lower inventories than with a chase approach. - Answer FALSE Feedback: It is just the opposite: chase involves lower investment in inventory. T/F A level approach works best when demand is stable. - Answer TRUE