P370 FINAL EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
Aggregate production planning FORMAL definition - ANS a managerial statement of time-
phased production rates, work-force levels, and inv management, which takes into account
customer requirements and capacity limitations
aggregate production planning BETTER definition - ANS mid-level process that converts
forecasted demand into labor hours to make sure that we have the labor resources necessary to
meet forecasted demand
2 things APP helps us do - ANS 1. attain our goals
2. help us manage our resources
3 major operation planning activities - ANS 1. strategic - long term
2. tactical - medium term, judgement and plans on how to utilize resources
3. operational - short term
5 components of nature of APP - ANS 1. aggregate (combine resources such as classes of
prod, labor, inputs, geo location, etc)
2. time horizon (usually year or less)
3. time buckets (months, week, sem) - division of horizons
4. rolling horizon (always planning ahead)
5. nature of business determines type of horizon/buckets
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, 3 lower levels of planning - ANS 1. master production scheduling (MPS)
2. material requirements planning (MRP)
3. shop floor scheduling
master production scheduling (mps) info - ANS -1st level of disaggregation
-break down into more real items
- horizon and buckets not longer than APP
-shorter time horizon and finer buckets
material requirements planning (MRP) info - ANS extreme detail, down to each nut and bolt,
done on computer in excel
shop floor scheduling info - ANS detailed, actual production schedule
3 pure aggregate plans - ANS 1. chase
2. level
3. stable workforce
chase approach - ANS -production and manpower fluctuate, hire or fire to meet demand
-most likely to cause least inventory and union issues
-not good for skilled workers
level approach - ANS -easiest
-constant workforce/production level with fluctuating inv levels, take cumul. demand/# of
buckets
-with or without backorder (with is more expensive)
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
ANSWERS GRADED A+ 2025/2026
Aggregate production planning FORMAL definition - ANS a managerial statement of time-
phased production rates, work-force levels, and inv management, which takes into account
customer requirements and capacity limitations
aggregate production planning BETTER definition - ANS mid-level process that converts
forecasted demand into labor hours to make sure that we have the labor resources necessary to
meet forecasted demand
2 things APP helps us do - ANS 1. attain our goals
2. help us manage our resources
3 major operation planning activities - ANS 1. strategic - long term
2. tactical - medium term, judgement and plans on how to utilize resources
3. operational - short term
5 components of nature of APP - ANS 1. aggregate (combine resources such as classes of
prod, labor, inputs, geo location, etc)
2. time horizon (usually year or less)
3. time buckets (months, week, sem) - division of horizons
4. rolling horizon (always planning ahead)
5. nature of business determines type of horizon/buckets
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, 3 lower levels of planning - ANS 1. master production scheduling (MPS)
2. material requirements planning (MRP)
3. shop floor scheduling
master production scheduling (mps) info - ANS -1st level of disaggregation
-break down into more real items
- horizon and buckets not longer than APP
-shorter time horizon and finer buckets
material requirements planning (MRP) info - ANS extreme detail, down to each nut and bolt,
done on computer in excel
shop floor scheduling info - ANS detailed, actual production schedule
3 pure aggregate plans - ANS 1. chase
2. level
3. stable workforce
chase approach - ANS -production and manpower fluctuate, hire or fire to meet demand
-most likely to cause least inventory and union issues
-not good for skilled workers
level approach - ANS -easiest
-constant workforce/production level with fluctuating inv levels, take cumul. demand/# of
buckets
-with or without backorder (with is more expensive)
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
